Inmode Stock Update - When Am I Buying?

Summary

In this video update, the speaker discusses the current state of InMode's stock, which has seen a bumpy ride since its IPO in 2019. Despite significant financial growth with revenues tripling and profitability nearly quintupling, the stock price has only risen by 15%. The speaker highlights the company's recent share buyback, which they view positively, and speculates on whether the stock's decline is due to external factors like interest rates and geopolitical conflicts or mismanagement. They express cautious optimism, stating they will consider buying more shares if they see a rebound in financial performance.

Takeaways

• 📈 The speaker is considering buying back into InMode stock after previously selling for a 300% profit.
• 📉 InMode's stock price has been volatile, experiencing both highs and lows since its IPO in September 2019.
• 💹 The company has shown significant financial growth with revenue tripling and profitability nearly quintupling since the IPO.
• 📉 Despite strong financials, InMode's stock price has only increased by 15% from its IPO price.
• 💸 InMode has a clean balance sheet with no debt and a large cash reserve, which has raised concerns due to a perceived lack of investment or buyback activity.
• 🔄 The company has recently initiated share buybacks, signaling a change in capital allocation strategy.
• 🚫 A major criticism of InMode has been the lack of dividend payments and share buybacks despite strong cash reserves.
• 📊 The speaker is cautious about reinvesting due to recent poor financial performance and is waiting for a rebound in growth.
• 🌐 External factors like interest rate hikes and geopolitical conflicts in Israel have negatively impacted InMode's business.
• 🔮 Analysts predict a potential rebound in InMode's financial performance in Q4 of the current year and beyond.

Q & A

What is the current stock price of InMode according to the transcript?

The current stock price of InMode (INMD) is mentioned as $16.50.

When did InMode IPO and how has the stock performed since then?

InMode IPOed around September 2019 at $4 and by the time of the transcript, it had increased to around $16.50, which is a 15% increase over nearly 5 years.

What was the speaker's initial experience with InMode stock?

The speaker became a shareholder in 2020 and the stock performed well, becoming a four-bagger, which means it increased by 300%.

What are some of the products offered by InMode?

InMode offers products like Define, EMPower, Evolve, Ignite, and Optimus Max, which are machines that help improve physical appearance without surgery.

What is the financial performance of InMode over the past 5 years?

Over the past 5 years, InMode's revenue has tripled from $123 million to $416 million, and profitability has increased from $33 million to $149 million.

What is the current PE ratio of InMode and how does it compare to historical values?

The current PE ratio of InMode is 9 times earnings, which is a significant drop from its historical range of around 20 times earnings.

What is the significance of InMode's share buyback program?

InMode is planning to buy back approximately 10% of its shares, which is around 7.68 million shares. This is seen as a positive move as it reduces the number of shares outstanding and increases the ownership percentage for existing shareholders.

What concerns have been raised about InMode's management team?

Critics, including the speaker and Sven Carlin, have raised concerns about InMode's management team for not utilizing their cash reserves effectively and for not initiating a share buyback or dividend program despite having a clean balance sheet and significant cash reserves.

What external factors have impacted InMode's performance?

External factors impacting InMode include rising interest rates, which affect the cost of purchasing their machines, and geopolitical tensions in Israel, where InMode is based, which have impacted their ability to manufacture devices quickly.

What is the current sentiment of the speaker towards InMode's stock?

The speaker is cautiously optimistic about InMode's stock. They are not actively buying more shares at the moment due to recent financial declines but are watching closely for signs of improvement to potentially increase their position.

What are the analyst expectations for InMode's future performance?

Analysts are expecting a rebound in Q4 of the current year with a 9% revenue growth and an EPS increase from $1.91 to $2.17, indicating a return to growth.