Insulet (PODD) AI Stock Analysis

• Market Cap: $17.22B
• Dividend Yield: N/A
• Average Volume (3M): 931.39K
• Price to Earnings (P/E): 42.4
• Beta (1Y): 1.19
• Revenue Growth: 22.07%
• EPS Growth: 101.95%
• Country: US
• Employees: 3,900
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Devices
• EPS (TTM): 5.79
• Shares Outstanding: 70,226,105
• 10 Day Avg. Volume: 842,261
• 30 Day Avg. Volume: 931,386
• PEG Ratio: 0.42
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.10
• Price to Cash Flow (P/CF): 31.90
• P/FCF Ratio: 30.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $326.07
• Price Target Upside: 32.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Insulet's strong financial fundamentals and positive growth outlook are key drivers of its stock score. The earnings call highlighted successful product expansion and market adoption, offsetting concerns about valuation and certain segment declines.

Positive Factors

Clinical Efficacy

The RADIANT study showed a statistically significant benefit in patients using O5/Libre 2 compared to MDI, indicating superior outcomes for automated insulin delivery systems.

Market Growth

Positive outcomes from the RADIANT study may drive the adoption of O5/Libre 2 in the US, boosting the company's growth prospects.

Negative Factors

Debt Strategy

The company has issued new senior unsecured notes at a higher interest rate to address existing convertible notes, which is part of a strategic financial restructuring.

Financial Performance

The new debt deal is slightly dilutive to EPS, reducing it by approximately 5%.

Insulet Business Overview & Revenue Model

Company Description

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. It offers Omnipod System, a self-adhesive disposable tubeless Omnipod device that is worn on the body for up to three days at a time, as well as its wireless companion, the handheld personal diabetes manager. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, and Australia. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

How the Company Makes Money

Insulet 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 strong financial performance with impressive revenue growth, robust profit margins, and improved cash flow. However, high liabilities remain a potential risk.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 245.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 245.26 is below the 20-day moving average (MA) of 259.01, below the 50-day MA of 269.86, and above the 200-day MA of 240.79, indicating a neutral trend. The MACD of -1.50 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 27.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PODD.

Insulet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNN	78 Outperform	$11.62B	27.87	7.82%	2.74%	4.58%	55.99%
STE	78 Outperform	$20.89B	45.09	9.61%	1.05%	-0.17%	-17.34%
PODD	76 Outperform	$17.22B	42.37	43.03%	―	22.07%	101.95%
DXCM	61 Neutral	$23.38B	42.00	27.63%	―	11.34%	4.24%
TNDM	56 Neutral	$1.12B	―	-33.30%	―	25.74%	57.18%
PHG	50 Neutral	$21.24B	―	-7.10%	―	-0.76%	-55.03%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%

Insulet Corporate Events

Insulet Closes $450 Million Senior Notes Issuance

On March 20, 2025, Insulet Corporation closed its issuance and sale of $450 million in 6.50% Senior Notes due 2033, with net proceeds expected to be approximately $444 million. Additionally, Insulet entered into a Seventh Amendment to its Credit Agreement, extending the maturity of revolving credit commitments to March 20, 2030, and increasing the commitments to $500 million. The company also engaged in Note Repurchase Transactions, repurchasing $419 million of its Convertible Senior Notes due 2026, which will impact its outstanding debt and potentially influence stock market activities.

Insulet Announces Pricing of $450 Million Senior Notes

On March 18, 2025, Insulet Corporation announced the pricing of $450 million in senior unsecured notes due 2033, with an annual interest rate of 6.50%. The proceeds, estimated at $444.4 million, will be used to finance the redemption of existing convertible senior notes, cover offering-related expenses, and for general corporate purposes. The private placement is expected to close on March 20, 2025, and the notes are offered to qualified institutional buyers and non-U.S. persons under specific regulations.

Insulet Announces $450M Senior Notes Offering

On March 18, 2025, Insulet Corporation announced a proposed offering of $450 million in senior unsecured notes due 2033, intended to finance the redemption of its existing Convertible Senior Notes due 2026, cover related expenses, and for general corporate purposes. Additionally, Insulet plans to amend its Credit Agreement to extend the maturity of its revolving credit facility to 2030 and increase commitments by $200 million. These financial maneuvers aim to strengthen Insulet’s financial position, though they are subject to market conditions and may not proceed as planned.

Insulet CTO Mark Field Departs for New Opportunities

Mark Field, the Senior Vice President and Chief Technology Officer of Insulet Corporation, has left the company as of March 14, 2025, to pursue other opportunities. Amit Guliani, currently the Group Vice President of Software Engineering, will temporarily assume the role of acting Chief Technology Officer while the company searches for a permanent replacement. Insulet plans to enter into a Consulting Agreement with Mr. Field to ensure a smooth transition.

Insulet Updates Equity Agreements for Fiscal 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.