INMD They're an Israel based company in aesthetics/plastic surgery. They make use of radiofrequency technology which is a new paradigm (compared to laser) in this sector. It allows them to use heating under the skin to melt fat and remodel collagen, in a minimally invasive manner. Thanks to this minimally invasive manner to tighten skin they open the aethetics/plastic surgery market to a younger group of people (35-55) who are not ready for invasive surgery. With their RF tech they can do procedures without full anaesthesia or full surgical procedures. So procedures are shorter (45 mins - 2 hours) and more accessible, don't require great preparation or long stays in a hospital, but can instead be done ambulatory in an office. Aside from that the recovery time is significantly shorter compared to surgery. And procedures are of course also a lot more affordable than invasive surgery.
Compared to laser treatments, the CTO refers to laser as $5b market while RF is a $200b market because it will be able to do procedures in more parts of the body.
Their customers are surgically trained physicians, worldwide. Not all of these are focused on aesthetics, but with INMD's technology allowing minimally invasive procedures it opens up aesthetic procedures for physicians who were not focused on this before. This is very lucrative for these physicians. INMD is also expanding toward ophthalmologists, gynaecologists, who, with INMD's devices become able to do more procedures in minimally invasive manner.
The company is profitable, growing, no debt, high margins, very nice fcf, expanding toward new customers (ophthalmologists, gynaecologists, dermatologists, wellness), keeps innovating, doing small buybacks . They're also expanding internationally as regulatory agencies give approvals for their devices.
Management has extensive background and know-how in the sector and the technology they're using. They target revenue growth of +$50M/year, which would be cagr of around 20% the coming years.
Their moat is in patents for their products and their technology, their know-how/expertise, regulatory approval for their devices to do procedures under the skin. It's obviously also a re-opening play. They were impacted by covid and the stock has lagged overall market recovery. It's almost priced as value.
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