https://preview.redd.it/63u35eneroog1.png?width=1365&format=png&auto=webp&s=3034426531c5b7f63b3abc507063931327231c26
Hey Chuds,
Looksmaxxing is the new secular trend. Cool guys are pinning chinese peptides, geting leg surgery, and smoking meth. Blackpill is now mainstream. Even GLP-1s have diabetics looksmaxxing.
How do you profit from this?
Nobody wants to undergo surgery to look hot. They want the easiest method possible. Even injecting reta isn't easy enough, they want it in a pill. Any non-invasive method of looksmaxing is ripe for growth.
Enter $INMD.
InMode is a leading provider of radiofrequency (RF) based minimally invasive medical technologies. Their leading products are Morpheus and FaceTite. By utilizing radiofrequency, these devices are used for fat reduction and skin contraction.
Used by celebs like Kim K, it's a perfect fit for the serious looksmaxxing demographic. It's what gives those A list celebrities that unbelivably tight and sheer skin. Results look natural and recovery is minimal, unlike surgery.
Historically, the medical aesthetics market was overwhelmingly female-centric. However, looksmaxxing has catalyzed a significant increase in male participation. The male aesthetic market is projected to reach approximately $11.17 billion by 2032, driven by a desire for "skin architecture" and structural refinement.
And, think about the current trend of weightloss with looksmaxxing. Everyone knows when you lose weight too quickly, you get loose skin. Peptides, GLP-1, etc. make you lose weight incredibly quickly which causes loose skin. $INMD is a clear winner from minimally invasive skin tightening procedures. The GLP-1 plays might look amazing today, but give it 2-3 years for the loose skin to build up, and I suspect $INMD to see a lot more revenue from this customer group.
$INMD is a **very** cheap way to play this secular thesis. Almost illegally cheap.
For an 800M market cap company, the balance sheet is ridiculous.
|$INMD Balance Sheet|$ USD|
|:-|:-|
|Total Assets|766.4M|
|Non-Tangible Assets|53M|
|Total Liabilities|83.2M|
|Net Tangible Book Value|630M|
The company is 630M of net tangible book value for 800M. 605M of that is cash and receivables.
At 800M market cap and \~600M net cash, the value of the operating business is around $200M. Let's take a look at $INMD's operations.
|$INMD FY2025|$ USD|
|:-|:-|
|Revenue|370.5M (-8% YoY)|
|Gross Profit|291M|
|Operating Income|85.4M|
|Net Income|93.8M|
They have a fantastic 78% gross margin and 23% operating margin. They generated 85M of operating income on a valuation of 200M for the operating business, with no debt. That's 2X P/E.
Despite massive margins and cash flows, revenues declined year over year since 2023. This is primarily due to medical devices being a lumpy industry - once you've sold the device, customers won't need a new one for a few years. I expect revenue to rebound in trend.
So what's wrong with the stock?
InMode is headquartered in Israel. Which means two things. One, Israel is currently under attack from Iran. The market has sold off some Israel stocks in relataion to this. I don't think INMD is significantly impacted. They don't sell their product in Israel much at all. It's primarily sold in the US, the vast majority of the employees are outside of Israel.
Second, InMode is an Israeli founded company, meaning the management is ███████ . There's been some very skeptical activity from management in allowing the stock price to get this low while the business is performing just fine. Last year,[ hedge funds were writing open letters to the CEO blasting him for not returning enough capital to shareholders](https://www.prnewswire.com/news-releases/doma-perpetual-sends-letter-urging-board-of-directors-of-inmode-ltd-to-return-capital-to-the-shareholders-302550020.html). Just a month ago, [a private equity firm threatened to take over the company at a big premium](https://www.businesswire.com/news/home/20260128682883/en/Steel-Partners-Holdings-L.P.-Announces-It-Has-Presented-%2418.00-Per-Share-Offer-for-51-of-InMode-Ltd.-to-Board-of-Directors) ($18/sh, +50% from today).
The company has returned plenty of capital though. These funds are impatient. They executed over $500M in buybacks over the last 3 years, which is nearly the entire market cap today. Shares outstanding are on track to drop by 50% since 2024. They have an active buyback program for another 7M shares.
$INMD is a clear buy at $12.75, with a full position until at least the private equity offer of $18/share.
https://preview.redd.it/yx7sset0zoog1.png?width=1045&format=png&auto=webp&s=f75ba3631a76e5b6c617d38a02a5a5bc4f0ecba7
TL;DR:
1. Looksmaxxing is a secular trend
2. INMD makes medical devices for minimally invasive cosmetic procedures, particularly skin tightening, which will see a rise in use related to looksmaxxing.
3. They haven't seen the revenue yet because the skin isn't loose enough yet
4. 800M Market cap, 600M net cash
5. 2x P/E
6. Stock is at $12.75 today, but private equity offered $18 a month ago to take it private