InMode (INMD), mcap=$2.8bn, price $33.12 vs $31.89

$INMD pitch:
– Medical device maker – provider of radiofrequency-based, minimally invasive surgical aesthetic and medical treatment solutions.
– Fast growth and high-quality business at 7% FCF yield.
– Generates 85% of its revenue from the sale of capital systems at ASPs in the $100,000+ range – installed base at 14k and growing every quarter.
– Unlike most fast-growth MedTech companies, INMD delivers strong FCF with mid-80 % gross margins, 50% EBIT margins, and ROIC of 40%.
– Growth potential beyond current applications from the pipeline of new products and indication treatments.
– A strong balance sheet with a $440m net cash position.

$INMD valuation:
– Currently trades at 7% FCF yield.
– 2023 sales are projected at $490m and EBITDA at $231mm.
– With a 15x multiple, in line with 12x-20x for MedTech peers, a price target of $49.52/share.

Exp. gain: +50% to $50/share.

Full INMD write-up (free guest account required):

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