Strong Gross Profit Margin
Strong Return on Equity
Healthy Net Profit Margin
Low Debt Levels
Strong Liquidity Ratios
🚀 Strong Revenue Growth
🔗 Competitive Moat
🌍 International Expansion
📈 Type 2 Diabetes Market Growth
🛠️ Innovation Pipeline
🌐 Market Leadership
High Valuation Ratios
Operating Profit Margin
Lack of Dividends
⚠️ Pricing Headwinds
⏳ Competitive Landscape
Insulet Corporation shows strong business quality, evidenced by consistent revenue growth, a competitive moat, and significant international expansion. Future prospects remain positive, particularly with the growth potential in the type 2 diabetes market and ongoing innovations. However, pricing pressures and upcoming competition present potential challenges.
Analysis Date: February 20, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$229.53
Current Market Price: $245.48
IV/P Ratio: 0.94x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-7.000000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for PODD
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (41.14)
P/B ratio ≤ 1.5 (14.20)
Current ratio ≥ 2.0 (3.58x)
Long-term debt < Net current assets (0.00x)
Margin of safety (-7.000000000000001%)
PODD does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
PODD demonstrates an impressive return on equity of 40.62%, indicating effective use of shareholder equity to generate profits.
With a net profit margin of 22.01%, PODD is achieving a solid portion of revenue as profit, reflecting strong operational efficiency.
The operating profit margin of 16.26% could be improved to enhance profitability, especially in a competitive market.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
40.62%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
3.26%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
76.41%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
22.01%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
With a debt-to-equity ratio of 0.069 and debt-to-assets of 0.027, PODD maintains a very healthy balance sheet with minimal leverage.
The current ratio of 3.58 and quick ratio of 2.76 indicate that PODD has ample liquidity to meet its short-term obligations.
The absence of dividends may be a concern for income-focused investors, indicating that profits are being reinvested rather than returned to shareholders.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.07x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
3.58x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Insulet achieved over $2 billion in revenue for the first time, marking a 22% growth year-over-year. This was their ninth consecutive year of 20% or more constant currency revenue growth.
Insulet's unique tubeless insulin delivery system and the integration of their Omnipod 5 with various continuous glucose monitors (CGMs) provide a strong competitive edge. They are the only AID therapy with Medicare Part D reimbursement.
Insulet has successfully expanded its international presence, with rapid adoption in key markets like the U.K., Germany, France, and the Netherlands. The company plans to launch in five additional European countries in 2025.
As the company shifts more volume through the pharmacy channel, they anticipate some challenges related to pricing dynamics, which may impact gross margins.
The expansion into the type 2 diabetes market represents a significant growth opportunity, with the potential to convert MDI users to Omnipod 5 therapy. Type 2 users accounted for 30% of new customer starts in Q4.
The company is focused on advancing their technology through research and development, with multiple clinical trials ongoing to support product enhancements and new algorithms.
Insulet is well-positioned as the first mover in the AID for type 2 diabetes, giving them a significant advantage and a long runway for growth in a largely untapped market.
As competitors begin to gain FDA approvals for type 2 AID systems, Insulet may face increased competition, which could impact its market share in the coming years.