One-glance verdict
Undervalued
$233.54 our estimate vs market $131.96
Wall Street consensus: $171.91 (-26.4% lower than our fair-value estimate)
43% below our estimate, below the bear case
Fundamentals snapshot
Insulet Corporation
PODD · NMS · Healthcare · Medical Devices
Current price
$131.96
52-week range
$126.40 - $354.88
Market cap
$9.15B
Balance sheet
Watch
7.98x Adequate
Net debt $413.50M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 12.8% last year.
- Reward Returns 26.0% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.3% (peer median: 0.5%).
What this company does
Insulet Corporation
Insulet makes the Omnipod, a small, wearable device that automatically delivers insulin for people with diabetes, replacing the need for multiple daily injections. The company makes most of its money from the ongoing sale of these disposable pods, which generates recurring revenue (predictable income because customers must continuously buy new pods to manage their condition).
How the company got here
Insulet was founded in 2000 by a father who wanted a better way to manage his young son's diabetes. He was dissatisfied with the existing insulin delivery options and envisioned a tubeless, wearable device to make life easier for people with diabetes. This idea led to the creation of the Omnipod, a disposable insulin pod. Over the years, the company has focused on continuous innovation, evolving from its initial product to the advanced Omnipod 5, an automated insulin delivery system that can be controlled by a smartphone.
What it actually does
Insulet makes and sells the Omnipod system, a wearable device for people with insulin-dependent diabetes. Think of it as a small, waterproof patch, called a "Pod," that you stick on your body. This Pod holds a small supply of insulin and delivers it continuously for up to three days, so you don't need to give yourself multiple daily injections with a needle. The newest version, the Omnipod 5, works with a separate sensor (a continuous glucose monitor) to automatically adjust insulin delivery based on your body's needs.
Total Omnipod
This is the company's main business and makes up the vast majority of its revenue (the total amount of money the company brings in from sales). It includes sales of the disposable Omnipod Pods and the controllers used to manage them. Customers, who are people with diabetes, get these products through pharmacies, which is different from how many other medical devices are distributed. This business generates recurring revenue because users need to continuously purchase new Pods every few days.
Drug Delivery
This is a much smaller part of Insulet's business. The company partners with pharmaceutical and biotech companies to use its Omnipod technology to deliver other types of medicines besides insulin. Essentially, they adapt the wearable Pod platform for other drugs that need to be administered under the skin. This allows other companies to use Insulet's convenient, tubeless technology for their own therapies.
What management is betting on now
The company's leadership is focused on getting more people with diabetes to use their Omnipod systems, both in the U.S. and internationally. A major priority is expanding into the market for people with type 2 diabetes, which is a much larger group than their traditional type 1 diabetes customer base. They are also investing heavily in innovation to make their products even easier to use and more automated. The goal is to make managing diabetes simpler and to continue growing by reaching new customers and expanding into new countries.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$71.80M
FY2024 Q4
$94.10M
FY2025 Q1
$51.50M
FY2025 Q2
$177.90M
FY2025 Q3
$100.10M
FY2025 Q4
$48.20M
FY2026 Q1
$89.50M
FY2026 Q2
$55.90M
Revenue
$801.70M
Net income
$95.00M
Diluted EPS
1.37
Operating cash flow
$88.40M
Free cash flow
$55.90M
Fetching…
Sources
Revenue
$761.70M
Net income
$91.10M
Diluted EPS
1.30
Operating cash flow
$113.80M
Free cash flow
$89.50M
Fetching…
Sources
Revenue
$783.70M
Net income
$101.60M
Diluted EPS
1.42
Operating cash flow
$183.30M
Free cash flow
$48.20M
Fetching…
Sources
Revenue
$706.30M
Net income
$87.60M
Diluted EPS
1.24
Operating cash flow
$125.70M
Free cash flow
$100.10M
Fetching…
Sources
Revenue
$649.10M
Net income
$22.50M
Diluted EPS
0.32
Operating cash flow
$196.50M
Free cash flow
$177.90M
Fetching…
Sources
Revenue
$569.00M
Net income
$35.40M
Diluted EPS
0.50
Operating cash flow
$63.80M
Free cash flow
$51.50M
Fetching…
Sources
Revenue
$597.50M
Net income
$100.70M
Diluted EPS
1.38
Operating cash flow
$147.70M
Free cash flow
$94.10M
Fetching…
Sources
Revenue
$543.90M
Net income
$77.50M
Diluted EPS
1.08
Operating cash flow
$98.50M
Free cash flow
$71.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $233.54 vs current price $131.96
Wall Street consensus is the average analyst price target: $171.91 (-26.4% lower than our fair-value estimate).
Our most-likely fair value is $233.54 a share — about 77.0% above today's price of $131.96, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $413.5M. Interest coverage 8.0x.
Net debt
$413.50M
Interest coverage
7.98x
Insulet Corporation's profit covers its interest bill about 8.0 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
PODD
BASELINE
Insulet Corporation
Total debt $948.40M Interest coverage 7.98x This is the baseline the peer rows are being compared against.
Total debt $1.40B Interest coverage 49.83x +525% vs PODD Carries about 6.2x more debt cushion than PODD.
Total debt $739.25M Interest coverage -27.67x -100% vs PODD This peer has almost no interest-payment cushion compared with PODD.
Total debt $32.72B Interest coverage 16.33x +105% vs PODD Carries about 2.0x more debt cushion than PODD.
Total debt $28.15B Interest coverage 9.55x +20% vs PODD Carries about 1.2x more debt cushion than PODD.
Total debt $62.82M Interest coverage -13.80x -100% vs PODD This peer has almost no interest-payment cushion compared with PODD.
What you should know
The case for and against PODD
3 Rewards
1 Risk
Rewards
-
Revenue grew 12.8% last year.
-
Returns 26.0% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 0.3% (peer median: 0.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
24.76x
Forward P/E
17.11x
P/B
6.43x
P/S
3.00x
EV/EBITDA
15.56x
PEG ratio
1.04x
Profitability
How much profit each dollar creates
Gross margin
71.1%
Operating margin
16.2%
Net margin
12.3%
ROE
26.0%
ROA
9.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.67x
Current ratio
2.48x
Quick ratio
1.51x
Total debt
$948.40M
Total cash
$534.90M
Growth
How the business has been compounding
Revenue TTM
$3.05B
Revenue 5Y CAGR
25.3%
EPS TTM
5.33
EPS 5Y CAGR
267.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$511.20M
Free CF TTM
$377.70M
FCF margin
12.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—