Coincidentally, InMode also recently showed up in one of my "low to no debt" screens. That Price : Book Value is looking really nice right now (~2), in addition to all of the other aspects mentioned in your article......these kind of situations don't happen very often.
The class action lawsuit does not worry me too much. Their inability to grow in a higher rate interest environment worries me a lot more. The only reason I held on was because of the massive buybacks they did, but that might not be enough. Although they still generate FCF, the ice cube seems to be melting...
Yes FCF still looks good. In these types of situations I always look at executive compensation to see where the money goes.......oftentimes small-mid sized companies are notorious for flaunting their margins, growth, strategy and FCF but a huge portion of those profits goes straight to executives.
We'll see what happens for sure........ will take a deeper look sometime.
great analysis. Thank you for sharing
Excellent work Kevin!
Coincidentally, InMode also recently showed up in one of my "low to no debt" screens. That Price : Book Value is looking really nice right now (~2), in addition to all of the other aspects mentioned in your article......these kind of situations don't happen very often.
Update: what are your thoughts on the lawsuit?
The class action lawsuit does not worry me too much. Their inability to grow in a higher rate interest environment worries me a lot more. The only reason I held on was because of the massive buybacks they did, but that might not be enough. Although they still generate FCF, the ice cube seems to be melting...
Yes FCF still looks good. In these types of situations I always look at executive compensation to see where the money goes.......oftentimes small-mid sized companies are notorious for flaunting their margins, growth, strategy and FCF but a huge portion of those profits goes straight to executives.
We'll see what happens for sure........ will take a deeper look sometime.
Thanks!