Equity Research
Overview
Our Equity Research reports cover publicly traded companies across Technology, Media & Telecom (TMT), Financial Services, Industrials, and Healthcare. Our goal is to provide clear, objective analyses of key operational and financial aspects of these businesses, with a focus on trends shaping their industries—from tech innovation and regulatory shifts in finance to industrial automation and breakthroughs in healthcare. Our mission is to deepen understanding of the drivers behind corporate success and foster informed discussions among professionals, students, and enthusiasts. These reports are not financial guidance but educational tools, designed to showcase our analytical approach to evaluating market dynamics.
DK Lee
Director Equity Research
“As the Director of Equity Research at Cascade Research, I’m proud of our collaborative environment, where students actively enhance their financial analysis skills through innovative and hands-on research. Our growing community is a testament to our commitment to blending academic rigor with real-world market insights, ensuring that our work not only deepens our expertise but also prepares us for future success in finance.”
– DK Lee
Industry Coverage
TMT
Our research covers companies in technology, media, and telecommunications, analyzing how innovation, regulatory shifts, and evolving consumer behavior drive competition, strategies, and market positioning
Financial Services
Our research examines players in banking, insurance, and asset management, with a focus on how capital strategy, compliance frameworks, and digital disruption influence sector dynamics.
Industrials
We study companies spanning manufacturing, logistics, and industrial equipment, assessing how operational efficiency, cost structures, and global demand trends impact performance.
Healthcare
We evaluate businesses in pharmaceuticals, biotechnology, and medical services, concentrating on the financial implications of product pipelines, policy developments, and aging population trends.
Content Overview
This section establishes a foundational understanding of the company, its historical trajectory, and its current standing in the market.
Core Operations: The company’s primary business activities, geographic footprint, and key products or services.
Leadership & Governance: Background of the executive team, board composition, and strategic decision-making trends.
Financial Snapshot: Key metrics such as market capitalization, revenue growth over time, profitability margins (e.g., EBITDA, net income), and balance sheet health (e.g., debt-to-equity ratio).
Mission & Vision: Alignment of corporate goals with industry trends and stakeholder expectations.
A detailed examination of how the company generates value, sustains growth, and mitigates operational risks. This includes:
Revenue Generation: Breakdown of upfront sales (e.g., capital-intensive systems) versus recurring revenue streams (e.g., consumables, maintenance contracts, subscriptions).
Customer Engagement: Strategies to retain clients, such as training programs, leasing options, or ecosystem integration (e.g., digital platforms for data analytics).
Scalability & Adaptability: The company’s ability to expand into new markets, diversify product lines, or pivot in response to technological disruptions.
Cost Structure: Fixed vs. variable costs, supply chain efficiency, and R&D investment intensity.
An exploration of the broader sector dynamics, competitive landscape, and macroeconomic factors influencing the company’s performance. Key areas include:
Market Size & Growth: Historical revenue trends, projected CAGR, and catalysts such as demographic shifts (e.g., aging populations) or regulatory tailwinds (e.g., healthcare digitization).
Competitive Positioning: Market share analysis, benchmarking against peers on metrics like margins, R&D spending, and innovation pipelines.
Regulatory Environment: Impact of policy changes (e.g., FDA approvals, reimbursement frameworks) on market accessibility and profitability.
Technological Trends: Adoption of emerging technologies (e.g., AI, automation) and their role in reshaping industry standards.
A rigorous evaluation of the company’s financial health, performance, and valuation. This section covers:
Historical Performance: Revenue growth, margin trends (gross, operating, net), and cash flow generation over multiple fiscal years.
Ratio Analysis: Liquidity (current ratio, quick ratio), solvency (debt-to-equity, interest coverage), and efficiency metrics (asset turnover, inventory days).
Valuation: Traditional multiples (e.g., P/E, EV/EBITDA) and advanced methodologies such as DCF analysis to estimate intrinsic value based on projected free cash flows.
Investment Drivers: Capital allocation strategies, dividend policies, and share buyback programs.
A systematic identification and prioritization of risks that could impact the company’s growth trajectory or valuation. This includes:
Market Risks: Cyclical demand fluctuations, competitive pricing pressures, or geopolitical instability affecting global operations.
Operational Risks: Supply chain vulnerabilities, reliance on key suppliers, or operational inefficiencies.
Regulatory Risks: Changes in compliance requirements, delays in product approvals, or shifts in healthcare reimbursement policies.
Technological Risks: Obsolescence of existing products, cybersecurity threats, or failure to innovate.
Financial Risks: Currency volatility, interest rate exposure, or liquidity constraints.
Duolingo
Duolingo
Overview:
Duolingo (NASDAQ: DUOL) is the world’s largest digital‐first language‑learning platform. Its free, gamified mobile app offers bite‑sized lessons in 40 + languages while an AI‑driven personalization engine adapts the difficulty and content for each learner. Beyond languages, the company monetizes through an ad‑supported freemium model, the Duolingo Super subscription tier, the Duolingo English Test (high‑stakes proficiency certificate accepted by 4,500+ institutions) and new standalone learning apps for Math, Music, and (coming soon) Chess. Founded in 2011 and headquartered in Pittsburgh
Stock Ticker Symbol: DUOL (Nasdaq)
Industry: Education Technology / Online & Mobile Learning
Key Products or Services: Online healthcare consultations, prescription and over-the-counter products for hair loss, skincare, sexual health, and mental health support
Company Snapshot:
Financial Health – Strong: FY‑2024 revenue $748 M (+41 % YoY) and Q1‑25 EPS beat; positive net income, low debt, >$900 M cash on hand.
Growth Potential – Very High: 49 % YoY DAU growth to 46.6 M and >10 M paid subs; TAM for language & adjacent learning ~$220 B; rapid product‑line expansion (Math, Music, Chess).
Competitive Position – Strong: Largest user base; top‑grossing Education app; moat in brand + gamification, though faces competition from Babbel, Busuu, Rosetta Stone, traditional schools.
Management Quality – Strong: Founder‑led (Luis von Ahn & Severin Hacker); track record of product innovation and operational execution; consistently beats guidance.
Innovation & Adaptability – Very High: Fast course creation (148 new courses in Q1‑25) powered by generative‑AI; aggressive experimentation keeps engagement high.
Sustainable Risk- Moderate: Primarily digital footprint lowers environmental risk, but user‑engagement and app‑store fee dependence add business risk; regulatory risk in testing segment. (analysis based on above sources)
Hims & Hers
Hims and Hers Inc.
Overview:
Hims & Hers is a telehealth company offering a direct-to-consumer platform focused on personal wellness, providing treatments and products for various healthcare needs. Their services span hair care, skin care, sexual health, and mental health, connecting patients with licensed medical professionals via a subscription-based model.
Stock Ticker Symbol: HIMS
Industry: Telehealth / Healthcare Technology
Key Products or Services: Online healthcare consultations, prescription and over-the-counter products for hair loss, skincare, sexual health, and mental health support
Company Overview:
Financial Health – Strong: FY‑2024 revenue $1.48 B (+69 % YoY); net income $126 M versus prior‑year loss; 77 % gross margin; low debt and positive free cash flow.
Growth Potential – Very High: 2.23 M subscribers (+45 % YoY); guidance targets $2.3‑2.4 B revenue for 2025; entry into $100 B+ obesity‑care market and broader primary‑care offerings.
Competitive Position – Moderate: Strong brand recognition but faces crowded DTC field (Roman, Keeps, Teladoc/Livongo, CVS MinuteClinic). Pricing power hinges on marketing efficiency and formulary access.
Management Quality – Strong: Founder‑CEO Andrew Dudum and seasoned exec team have scaled revenue 11× since IPO while delivering first GAAP profit in 2024
Innovation & Adaptability – Strong: Rapid launch cycles (e.g., GLP‑1, mental‑health chat, retail SKUs); internal pharmacy & fulfillment give vertical control; experimenting with AI‑guided care paths.
Sustainable Risk – Elevated: Heavy regulatory exposure (FDA rules on compounding, tele‑prescribing); reliance on paid ads for customer acquisition; GLP‑1 shift already hit shares −27 % in Feb 2025.
Arista Networks
Arista Networks
Overview:
Arista Networks (NYSE: ANET) designs and sells high‑performance cloud‑networking solutions for large‑scale data‑center, AI cluster, campus‑edge and routing environments. Its portfolio spans ultra‑low‑latency 100/200/400/800 GbE switches and routers, the Linux‑based Extensible Operating System (EOS), the CloudVision management/observability suite, Wi‑Fi 7 access points, and the new Etherlink™ AI Networking platforms that collapse multi‑tier fabrics into one‑ and two‑tier Ethernet topologies. Founded in 2004 by Andy Bechtolsheim and led by CEO Jayshree Ullal, Arista serves 10,000+ customers—most notably Microsoft, Meta and other hyperscalers—while expanding into enterprise and carrier segments.
Stock Ticker Symbol: ANET (NYSE)
Industry: Cloud & Data‑Center Networking Hardware / Enterprise Software
Key Products or Services: 7000‑series data‑center switches (100G‑800G) and 7800/7700R4 AI fabrics, EOS® network OS & CloudVision® automation/observability platform, Campus switches, PoE edge routing, Wi‑Fi 6/6E/7 access points, AI‑focused Etherlink platforms & Ultra‑Ethernet Consortium participation, Professional services, subscription software & support contracts
Company Overview:
Financial Health – Very High: FY‑2024 revenue $7.0 B (+19.5 % YoY), GAAP net income $2.85 B, 64 % gross margin, zero long‑term debt and >$4 B cash equivalents.
Growth Potential – Very High: Hyperscalers boosting AI capex; Arista targets $1.5 B AI‑specific revenue in 2025 and guides Q1‑25 rev. $1.93–1.97 B. Market for DC switches forecast to grow double‑digits through 2030.
Competitive Position – Strong: #1 share in high‑speed data‑center switching; differentiated EOS software stack. Main rivals: Cisco, Juniper & Nvidia’s InfiniBand for AI.
| Management Quality – Strong: Veteran CEO Jayshree Ullal (since 2008) and co‑founder Andy Bechtolsheim deliver consistent share gains and profitable growth; 20‑yr track record. |
Innovation & Adaptability – Very High: Fast roll‑out of 800 G/AI fabrics, Wi‑Fi 7, universal network observability, and AI Agent in partnership with NVIDIA; active in Ultra‑Ethernet Consortium.
Sustainable Risk- Very High: Customer concentration (Microsoft & Meta ≈ 40 % sales), supply‑chain dependencies, and rapid tech cycles pose risks, but asset‑light model limits environmental footprint. (analysis of sources above)
Dexcom
Dexcom
Overview:
Dexcom (Nasdaq: DXCM) is a global leader in real‑time continuous glucose‑monitoring (CGM) systems. Its tiny, wearable sensors give diabetes and wellness users up‑to‑the‑minute glucose readings that stream to phones, smart‑watches, insulin‑delivery systems, and the cloud. Flagship products include the Dexcom G7 (now FDA‑cleared for a 15‑day wear) and the over‑the‑counter Stelo biosensor aimed at non‑insulin type‑2 and wellness users. Revenue comes from a razor‑razor‑blade model: disposable sensors drive >95 % of sales, while the Cloud‑based Clarity analytics platform, data‑sharing APIs, and partnerships with insulin‑pump makers and ŌURA’s smart ring create sticky, ecosystem lock‑in.
Stock Ticker Symbol: DXCM (Nasdaq)
Industry: Medical Devices / Digital Health / Diabetes Care
Key Products or Services: Dexcom G7 CGM (15‑day sensor, direct‑to‑watch), Dexcom G6 legacy CGM platform, Stelo OTC glucose biosensor (Amazon launch), Dexcom Clarity data & insights platform; developer APIs, Integrations with insulin pumps (Tandem, Insulet), smart rings (ŌURA), and major wearables
Company Overview:
Financial Health – Strong: FY‑2024 revenue $4.0 B (+23 % YoY) with 57 % gross margin; Q1‑25 revenue $1.04 B (+12 % YoY); $2.7 B cash, no bank debt (only convertible notes), and a new $750 M buy‑back program.
Growth Potential – Very High: 2025 guidance $4.6 B (+14 %); Medicare & PBM rule changes open CGM to all diabetes types; Stelo targets 25 M U.S. non‑insulin T2Ds; global CGM TAM forecast >$20 B by 2030.
Competitive Position – Strong: Industry‑leading accuracy (MARD 8 %) and first‑to‑market direct‑to‑watch; however faces price‑led competition from Abbott’s Libre 3 and upcoming Medtronic Simplera.
Management Quality – Very High: CEO/Chair Kevin Sayer has steered DXCM since 2015, delivering consistent double‑digit top‑line growth and successful G7 rollout.
Innovation & Adaptability – Moderate: Rapid product cadence (G7 15‑day, Stelo OTC), AI coaching layers, and open API strategy; early moves into consumer wellness (ŌURA, Amazon) diversify revenue.
Sustainable Risk: Regulatory & reimbursement shifts can swing demand; sensor manufacturing scale‑up pressures gross margin; high exposure to single‑use plastics but overall low carbon footprint for a med‑tech firm.
Keysight Technologies
Keysight Technologies
Overview: Keysight Technologies is a leading provider of electronic design and test solutions that accelerate innovation across the communications, aerospace and defence, automotive, energy, and semiconductor markets. The company delivers hardware and software tools used in R&D, validation, and manufacturing processes, enabling customers to bring cutting-edge technologies to market faster and with greater precision.
Stock Ticker Symbol: KEYS
Industry: Electronic Measurement / Test & Measurement Equipment
Key Products or Services: Network analysers, oscilloscopes, signal generators, test automation software, 5G/6G testing solutions, automotive radar, quantum computing test platforms
Company Snapshot:
Financial Health – Strong: FY-2024 revenue $4.98 B (-9 % YoY); GAAP net income $614 M; ~60 % gross margin; cash $1.81 B versus long-term debt $1.79 B; free cash flow $905 M.
Growth Potential – Moderate: Secular drivers (6G/AI data-centre interconnects, EV power, quantum) plus software ARR $1.5 B; management keeping R&D at ~17 % of sales despite cyclical trough, positioning for mid-single-digit CAGR when cap-ex rebounds.
Competitive Position – Very high: #1 global share in general-purpose electronic test; breadth of integrated HW/SW beats focused rivals (Rohde & Schwarz, Tektronix/Fortive, Anritsu, NI/Emerson); pending Spirent deal would widen networking moat.
Management Quality – Strong: Since the 2014 Agilent spin-out, CEO Satish Dhanasekaran’s team has doubled revenue, lifted gross margin >600 bps and returned cash via disciplined buybacks while funding record R&D.
Innovation & Adaptability – Strong: FY-2024 R&D spend $919 M (≈18 % of revenue); first-to-market 6G digital-twin testbeds, 800G/1.6T interconnect and quantum emulation underscore rapid product cycles and software-centric pivot.
Sustainable Risk – Moderate: Cyclical exposure to telecom and semiconductor cap-ex; ~15-20 % China revenue plus export-control scrutiny (2021 $6.6 M ITAR settlement); large M&A integrations and regulatory approvals (Spirent) add execution risk.
BorgWarner
BorgWarner
Company Overview: BorgWarner supplies propulsion and drivetrain systems – turbochargers, e-motors, power electronics, battery packs and more – to global passenger- and commercial-vehicle OEMs, accelerating the shift from combustion to hybrid and electric mobility.
Stock Ticker Symbol: BWA
Industry: Automotive Propulsion & Drivetrain Systems / Auto Components
Key Products or Services: Turbochargers; electric motors and integrated drive modules; SiC inverters and on-board chargers; high-voltage battery packs and battery management; eAxles and power electronics; transmissions, clutches, and all-wheel-drive components; thermal management and cooling systems.
Company Overview:
Financial Health – Strong: FY-2024 revenue $14.1 B (-0.8 % YoY); net income $338 M; adjusted operating margin ≈10 %; free cash flow $715 M; cash $2.1 B versus total debt $4.3 B, providing solid liquidity and leverage headroom.
Growth Potential – High: Electrified “eProduct” sales hit ~$2.6 B in 2024 (+30 % YoY) and are guided to ~35 % of total revenue by 2025; management forecasts 2025 sales $13.6-14.2 B, underpinned by EV, hybrid and emissions-mandate content wins and a $24 B electrification backlog.
Competitive Position – Strong: Top two share across turbocharging, e-motors and power-electronics; full-line propulsion portfolio lets BorgWarner offer integrated solutions that narrower peers (Dana, Valeo, Magna) can’t match, reinforcing sticky OEM relationships.
Management Quality – Strong: Leadership has redeployed capital from legacy businesses into EV assets, completed a $400 M buy-back in 2024, and consistently meets margin/FCF targets while executing the “Charging Forward” strategy.
Innovation & Adaptability – Strong: R&D spend $736 M (5.2 % of sales) fuels rapid launches such as SiC inverters, integrated drive modules and high-voltage battery systems; recent China-led programs showcase fast localisation and tech refresh cycles.
Sustainable Risk – Moderate: Exposure to timing of ICE-to-EV transition, customer concentration (Ford 13 %, VW 10 %), and 20 % China revenue; macro slowdowns or tariff shifts could dent volumes, but diversified propulsion mix, and strong balance-sheet cushion mitigate tail risks.