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Insulet (PODD)
NASDAQ:PODD
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Insulet
(NASDAQ:PODD)76Outperform
Positive Factors
Earnings Performance
Insulet reported strong profitability, with its earnings per share exceeding expectations due to strong gross margins.
International Expansion
Analyst sees potential growth for Insulet due to international expansion efforts.
Negative Factors
Guidance Concerns
Investors seem wary of conservative US guidance, particularly in terms of expected revenue growth, despite management's strategic focus on growth.
Insulet (PODD) vs. S&P 500 (SPY)
Market Cap
$18.24B
Dividend YieldN/A
Average Volume (3M)719.85K
Price to Earnings (P/E)43.5
Beta (1Y)1.35
Revenue Growth22.07%
EPS Growth101.95%
CountryUS
Employees3,000
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)5.79
Shares Outstanding70,226,105
10 Day Avg. Volume963,055
30 Day Avg. Volume719,848
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)N/A
Price to Sales (P/S)8.80
Price to Cash Flow (P/CF)30.90
P/FCF Ratio29.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$326.33Price Target Upside29.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Insulet Business Overview & Revenue Model
Company DescriptionInsulet Corporation, primarily operating in the healthcare sector, is renowned for its innovative medical devices, with a particular focus on diabetes management. The company's flagship product, the Omnipod Insulin Management System, is a tubeless, wearable insulin pump that simplifies the process of insulin delivery for patients with diabetes. By offering a user-friendly and discreet solution, Insulet aims to improve the quality of life for individuals managing diabetes while reducing the burden of traditional insulin delivery methods.
How the Company Makes MoneyInsulet Corporation generates revenue primarily through the sale of its Omnipod Insulin Management System. The company's revenue model is based on the direct sales of the Omnipod system and its associated consumables, such as pods and other accessories required for the system's operation. Insulet employs a subscription-based model, where customers regularly purchase pods for continued use of the system, providing a recurring revenue stream. Additional revenue is generated through partnerships with healthcare providers and insurance companies, which often cover the cost of the Omnipod system under health plans, making it accessible to a broader customer base. The company also invests in research and development to enhance its product offerings, which can lead to new revenue opportunities.
Insulet Financial Statement Overview
Summary
Insulet demonstrates robust financial health with significant revenue growth, improved profitability, and strong cash flow management. However, high total liabilities present a potential risk that requires careful management.Income Statement
Insulet has demonstrated strong revenue growth with a 22% increase in 2024, building on a consistent upward trend over the past years. The gross profit margin is robust, standing at 69.8% for 2024. The net profit margin also improved significantly to 20.2%, reflecting enhanced profitability. EBIT and EBITDA margins have strengthened to 14.9% and 14.9% respectively, indicating efficient operational management. Overall, the income statement reflects strong growth and profitability.85
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with an equity ratio of 39.2% in 2024, which has improved from 28.3% in 2023. The debt-to-equity ratio has decreased to 0.07, indicating reduced leverage and financial risk. Return on equity is impressive at 34.5%, showcasing strong shareholder returns. However, total liabilities remain high, which could pose future financial risks if not managed carefully.75
Positive
Cash Flow
Insulet's cash flow statement reveals a strong free cash flow growth rate of 736% in 2024, reflecting an improved cash position. The operating cash flow to net income ratio is 1.03, indicating good cash conversion from profits. The free cash flow to net income ratio stands at 0.73, suggesting efficient use of cash. These metrics highlight healthy cash flow management, despite past fluctuations.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.07B | 1.70B | 1.31B | 1.10B | 904.40M | Gross Profit |
| 1.45B | 1.16B | 805.60M | 752.10M | 582.30M | EBIT |
| 308.90M | 220.00M | -26.70M | 66.70M | -600.00K | EBITDA |
| 423.70M | 323.60M | 109.50M | 139.60M | 110.30M | Net Income Common Stockholders |
| 418.30M | 206.30M | 4.60M | 16.80M | 6.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 953.40M | 704.20M | 674.70M | 791.60M | 947.60M | Total Assets |
| 3.09B | 2.59B | 2.25B | 2.05B | 1.87B | Total Debt |
| 83.80M | 1.42B | 1.40B | 1.25B | 1.04B | Net Debt |
| -869.60M | 711.60M | 727.10M | 457.20M | 96.10M | Total Liabilities |
| 1.88B | 1.86B | 1.77B | 1.49B | 1.27B | Stockholders Equity |
| 1.21B | 732.70M | 476.40M | 556.30M | 603.60M |
| Cash Flow | Free Cash Flow | |||
| 305.40M | 36.50M | -38.30M | -190.80M | -82.50M | Operating Cash Flow |
| 430.30M | 145.70M | 119.00M | -68.10M | 84.00M | Investing Cash Flow |
| -146.20M | -119.40M | -191.10M | -82.70M | 14.00M | Financing Cash Flow |
| -28.10M | -13.60M | -40.30M | 40.70M | 605.50M |
Insulet Technical Analysis
Negative
251.81
Price Trends
273.48
Negative
263.63
Negative
233.50
Positive
Market Momentum
-3.97
Positive
30.78
Neutral
18.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PODD, the sentiment is Negative. The current price of 251.81 is below the 20-day moving average (MA) of 275.76, below the 50-day MA of 273.48, and above the 200-day MA of 233.50, indicating a neutral trend. The MACD of -3.97 indicates Positive momentum. The RSI at 30.78 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PODD.
Insulet Risk Analysis
Insulet disclosed 38 risk factors in its most recent earnings report. Insulet reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Insulet Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $234.27B | 17.69 | 30.95% | 1.66% | 4.59% | 134.50% | |
77 Outperform | $119.44B | 28.31 | 8.42% | 3.00% | 2.72% | 4.48% | |
76 Outperform | $18.24B | 43.50 | 43.03% | ― | 22.07% | 101.95% | |
66 Neutral | $31.07B | 54.64 | 27.63% | ― | 11.34% | 4.24% | |
56 Neutral | $1.24B | ― | -33.30% | ― | 25.74% | 57.18% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
39 Underperform | $400.37M | ― | -166.29% | ― | 0.37% | -20.49% |
* Healthcare Sector Average
Performance Comparison
PODD
Insulet
251.81
70.67
39.01%
ABT
Abbott Laboratories
137.14
19.35
16.43%
DXCM
Dexcom
77.84
-55.20
-41.49%
MDT
Medtronic
94.50
11.82
14.30%
TNDM
Tandem Diabetes Care
17.96
-11.58
-39.20%
SENS
Senseonics Holdings
0.65
0.04
6.56%
Insulet Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -12.65% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in revenue and significant milestones for Omnipod 5, including expansion into the type 2 diabetes market and international markets. However, challenges such as a projected decline in the Drug Delivery segment and currency impacts on international revenue were noted.Highlights
Record Revenue Achievement
Insulet Corporation reported over $2 billion in revenue for the first time in its history, marking the ninth consecutive year of 20% or more constant currency revenue growth.
Omnipod 5 Success
Omnipod 5 now available in the U.S. for both type 1 and type 2 diabetes patients, with 365,000 active global users and 500,000 total global customers using Omnipod.
International Expansion
Strong international revenue growth of 33.1% driven by the adoption of Omnipod 5, with recent launches in Italy and the Nordics and planned launches in five additional countries.
Type 2 Diabetes Market Growth
Type 2 users represented over 30% of U.S. new customer starts in the fourth quarter, with a significant opportunity in the type 2 market as Omnipod 5 is the first AID system approved for this population.
Gross Margin Improvement
Fourth quarter gross margin was 72.1%, up 120 basis points over the prior year, driven by U.S. volume and international pricing.
Lowlights
Drug Delivery Segment Decline
Drug Delivery revenue is expected to decline by 45% to 55% in 2025.
Currency Impact on International Revenue
An unfavorable foreign currency impact of approximately 300 basis points is expected to affect international revenue growth.
Company Guidance
In its 2025 guidance, Insulet Corporation anticipates another robust year, projecting total Omnipod revenue growth between 17% and 21% and overall company revenue growth from 16% to 20%, using constant currency metrics. U.S. Omnipod revenue is expected to grow by 16% to 20%, driven by strong adoption of Omnipod 5, particularly in the type 2 diabetes market following recent FDA clearance. Internationally, Insulet forecasts revenue growth from 22% to 26% despite a 300 basis point foreign currency headwind, with significant early adoption in new markets in the UK, Germany, France, and the Netherlands. The company also predicts its gross margin will slightly improve to approximately 70.5% for the year, supported by the Malaysia facility becoming accretive in the second half and continued operational efficiencies. Operating margin is projected to expand by 160 basis points to about 16.5%, reflecting ongoing investment in R&D, sales, and marketing to support growth initiatives.Insulet Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Insulet Updates Equity Agreements for Fiscal 2025
Neutral
Feb 21, 2025
On February 17, 2025, Insulet Corporation’s Talent and Compensation Committee approved revisions to its equity agreements, which include the Non-Qualified Stock Option Agreement, Restricted Stock Unit Agreement, and Performance Stock Unit Agreement for fiscal 2025. These revisions aim to enhance compensation recoupment language, update international tax and securities law compliance provisions, and clarify language, impacting the company’s operational governance and aligning with regulatory standards.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.