PODD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 186 industry peers in the Health Care Equipment & Supplies industry. PODD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PODD is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, PODD could be worth investigating further for growth and quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year PODD was profitable.
In the past year PODD had a positive cash flow from operations.
PODD had positive earnings in each of the past 5 years.
Of the past 5 years PODD 4 years had a positive operating cash flow.

1.2 Ratios

PODD has a Return On Assets of 8.13%. This is amongst the best in the industry. PODD outperforms 89.73% of its industry peers.
PODD's Return On Equity of 17.79% is amongst the best of the industry. PODD outperforms 93.51% of its industry peers.
The Return On Invested Capital of PODD (14.49%) is better than 95.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PODD is below the industry average of 8.81%.
The 3 year average ROIC (6.40%) for PODD is below the current ROIC(14.49%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	8.13%
ROE	17.79%
ROIC	14.49%

ROA(3y)7.24%

ROA(5y)4.58%

ROE(3y)21.22%

ROE(5y)13.56%

ROIC(3y)6.4%

ROIC(5y)5.42%

1.3 Margins

PODD has a Profit Margin of 9.76%. This is amongst the best in the industry. PODD outperforms 83.78% of its industry peers.
In the last couple of years the Profit Margin of PODD has grown nicely.
With an excellent Operating Margin value of 17.32%, PODD belongs to the best of the industry, outperforming 88.11% of the companies in the same industry.
PODD's Operating Margin has improved in the last couple of years.
PODD has a Gross Margin of 71.46%. This is amongst the best in the industry. PODD outperforms 81.08% of its industry peers.
In the last couple of years the Gross Margin of PODD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	17.32%
PM (TTM)	9.76%
GM	71.46%

OM growth 3Y9.15%

OM growth 5Y17.1%

PM growth 3Y136.37%

PM growth 5Y66.64%

GM growth 3Y0.65%

GM growth 5Y1.41%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PODD is still creating some value.
Compared to 1 year ago, PODD has more shares outstanding
PODD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PODD has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 8.44 indicates that PODD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.44, PODD belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
PODD has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as PODD would need 2.49 years to pay back of all of its debts.
The Debt to FCF ratio of PODD (2.49) is better than 84.86% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that PODD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, PODD is not doing good in the industry: 66.49% of the companies in the same industry are doing better.
Although PODD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	0.68
Debt/FCF	2.49
Altman-Z	8.44

ROIC/WACC1.47

WACC9.88%

2.3 Liquidity

PODD has a Current Ratio of 2.87. This indicates that PODD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.87, PODD is in line with its industry, outperforming 55.68% of the companies in the same industry.
PODD has a Quick Ratio of 2.18. This indicates that PODD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PODD (2.18) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.87
Quick Ratio	2.18

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

PODD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.65%, which is quite impressive.
PODD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 79.24% yearly.
PODD shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.12%.
PODD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.92% yearly.

EPS 1Y (TTM)27.65%

EPS 3Y58.9%

EPS 5Y79.24%

EPS Q2Q%37.78%

Revenue 1Y (TTM)27.12%

Revenue growth 3Y23.54%

Revenue growth 5Y22.92%

Sales Q2Q%29.86%

3.2 Future

The Earnings Per Share is expected to grow by 28.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, PODD will show a very strong growth in Revenue. The Revenue will grow by 20.59% on average per year.

EPS Next Y49.49%

EPS Next 2Y38%

EPS Next 3Y34.18%

EPS Next 5Y28.13%

Revenue Next Year30.95%

Revenue Next 2Y25.6%

Revenue Next 3Y23.28%

Revenue Next 5Y20.59%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 55.98, which means the current valuation is very expensive for PODD.
68.11% of the companies in the same industry are more expensive than PODD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PODD to the average of the S&P500 Index (28.32), we can say PODD is valued expensively.
With a Price/Forward Earnings ratio of 40.34, PODD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PODD indicates a somewhat cheap valuation: PODD is cheaper than 70.27% of the companies listed in the same industry.
PODD is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	55.98
Fwd PE	40.34

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PODD indicates a somewhat cheap valuation: PODD is cheaper than 69.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PODD indicates a somewhat cheap valuation: PODD is cheaper than 74.05% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	44.14
EV/EBITDA	35.06

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PODD may justify a higher PE ratio.
A more expensive valuation may be justified as PODD's earnings are expected to grow with 34.18% in the coming years.