Initial Report: Inmode (INMD) It should be sold,(EIP, Jiayang SIM)
A Diamond or a Fraud? Executive Summary: This company is a great example of something that looks shiny on the outside which may also provide real value to customers but remain uninvestable in the lens of ESG. From a fundamental investment POV, it is a great franchise quality and possibly this stock could be a multi-bagger. However, there are many several things that I have seen that make me want to stay far away from it: (1) Possible Fraudulent Management (2) Equipment Ineffectiveness. I would provide a fundamental view and then end off with my perspective on ESG. Company Overview: InMode is supposedly a recognized leader in the specialist field of minimally invasive medical treatment solutions, with a questionable strong brand reputation and a growing global footprint. InMode has l
EXECUTIVE SUMMARY DUNT is an established and market leader in the doughnuts and coffee industry located in U.S that is looking to take advantage of the ever-increasing demand for baked goods and coffee. By utilizing their spoke and hub model, it is likely that DUNT will be able to expand its reach to customers worldwide without huge expenditures despite their less than stable financial position. As such, the company is looking likely to continue growing and increasing their revenue, abet at a slower and steady rate due to their focus in strengthening their unrealized potential in the domestic first. Assuming they are able to ride on the CAGR of 10% growth for their doughnuts and maintain their position of market share in the coffee industry, using DCF, a target price of USD20.00, a
Valuation DUNT, with its current price of USD 14.77 as of 29th June 2023, the DCF valuation indicates a potential 36% to USD20.0 if DUNT can grow their product line with the Food and Beverages market growth of ~ 10% annually (varies depending on the year). Thus, DUNT 3Y DCF Target price will be USD 20.00. As for assumptions, I assumed an average 10.54% growth annually in line with their products Market Growth (which is slightly pessimistic due to strong competition). I assumed that CAPEX would increase as a steady percentage of revenue as one of the main growth strategies is expansion (both domestically with the Hub and Spoke and Internationally with Franchisee). Risks and Mitigation • Liquidity Position ○