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Insulet Corp PODD

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Insulet Prepares for Its Big Launch of Omnipod 5 Over the Summer; No Change to Our Fair Value

Debbie S. Wang Senior Equity Analyst

Analyst Note

| Debbie S. Wang |

Insulet’s strong first-quarter results were generally consistent with our top-line and bottom-line expectations, but earnings per share of $0.00 fell short of FactSet consensus of $0.06. Our longer-term assumptions for growth and gains in profitability that drive our free cash flow estimates haven’t changed, and we’re holding steady on our fair value estimate. Moreover, the firm is preparing for a major product launch in Omnipod 5, which will require increases in working capital and investment in the commercial organization which can throw profitability out of whack in the near term for Insulet, which only recently crossed over into the black. Omnipod 5, with its hybrid closed loop function and integration with the Dexcom continuous glucose monitor, is a major step forward for Insulet and demonstrates that this firm won’t be left behind in the dust as other key competitors push further into the realm of automated insulin delivery and control and monitoring through smart phones. This reinforces our view of Insulet’s narrow economic moat.

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Company Profile

Business Description

Insulet was founded in 2000 with the goal of making continuous subcutaneous insulin infusion therapy for diabetes easier to use. The result was the Omnipod system, which consists of a small disposable insulin infusion device and that can be operated through a smartphone to control dosage. Since the Omnipod was approved by the U.S. Food and Drug Administration in 2005, approximately 150,000 insulin-dependent diabetics are using it worldwide.

Contact
100 Nagog Park
Acton, MA, 01720
T +1 978 600-7000
Sector Healthcare
Industry Medical Devices
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 1,900

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