One-glance verdict
Overvalued
$0.54 our estimate vs market $19.38
Wall Street consensus: $27.76 (5,042.6% higher than our fair-value estimate)
3490% above our estimate, beyond the bull case
Fundamentals snapshot
Tandem Diabetes Care, Inc.
TNDM · NGM · Healthcare · Medical Devices
Current price
$19.38
52-week range
$12.26 - $29.65
Market cap
$1.35B
Balance sheet
Distressed
-27.67x Concerning
Net debt $283.26M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 2.6% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -48.0% last year — the company lost money on shareholders' equity.
What this company does
Tandem Diabetes Care, Inc.
Tandem Diabetes Care sells advanced insulin pumps and related supplies to people with diabetes, helping them manage their condition. Their main income comes from selling these devices and the recurring revenue (money that comes in regularly, like a subscription) from the disposable cartridges and other products people need to use the pumps. This is important because it shows they have a steady customer base who rely on their technology for ongoing care.
How the company got here
Tandem Diabetes Care started in 2006, originally named Phluid Inc., and changed its name in 2008. The company's journey has been focused on creating innovative technology to help people manage diabetes. A key turning point was the development and launch of its insulin pump systems, which aimed to offer more advanced and user-friendly solutions compared to existing options. The company has since grown by focusing on integrating its devices with continuous glucose monitoring (CGM) technology, creating a more automated approach to diabetes management.
What it actually does
Tandem Diabetes Care creates technology that helps people with diabetes manage their condition. Think of it like a smart system that delivers insulin automatically. Their main products are insulin pumps, which are small devices worn on the body that deliver insulin throughout the day. They also offer related supplies like cartridges to hold the insulin and special tubes (infusion sets) that connect the pump to the body. The company also provides software and apps that help users track their diabetes data, making it easier to understand and manage their health.
Insulin Delivery Systems
This is the core of Tandem's business, making up the vast majority of its revenue. They design and sell advanced insulin pumps, like the t:slim X2 and Tandem Mobi. These aren't just simple pumps; they are automated insulin delivery systems. This means they work with continuous glucose monitors (CGMs) to automatically adjust insulin delivery based on a person's real-time glucose levels, helping to keep them in a healthy range. People with diabetes, or their caregivers, purchase these systems and the ongoing supplies needed to use them.
Supplies and Accessories
Alongside their insulin pumps, Tandem also generates revenue from the sale of essential supplies. This includes the cartridges that hold the insulin within the pump and the infusion sets, which are the small tubes that connect the pump to the body to deliver insulin. These are single-use items that customers need to replace regularly, providing a recurring revenue stream for the company. This segment is a smaller but vital part of their overall business, supporting the use of their main insulin delivery systems.
Software and Data Management
Tandem offers digital tools that help users manage their diabetes data. This includes the Tandem Device Updater, a program to update the pump's software, and Tandem Source, a web platform that visually displays diabetes therapy data from pumps and CGMs. They also have a mobile app called Sugarmate. These services help users and their healthcare providers better understand and utilize the data generated by the devices, contributing to more informed diabetes management. While not as large as the hardware sales, these digital offerings are increasingly important for a connected healthcare experience.
What management is betting on now
Tandem's management is focused on expanding their reach and improving their technology. They are working on developing even more advanced automated insulin delivery systems, aiming for greater ease of use and better health outcomes for people with diabetes. A key strategy is to make their products accessible to more people globally and to integrate seamlessly with other diabetes management tools. They are also investing in research and development, including collaborations, to stay at the forefront of diabetes technology innovation.
Price history
How the share price has moved
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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
$21.54M
FY2024 Q4
$7.65M
FY2025 Q1
$-21.24M
FY2025 Q2
$-15.70M
FY2025 Q3
$4.17M
FY2025 Q4
$3.10M
FY2026 Q1
$4.79M
FY2026 Q2
$-38.68M
Revenue
$254.56M
Net income
$-21.17M
Diluted EPS
-0.31
Operating cash flow
$-34.63M
Free cash flow
$-38.68M
Fetching…
Sources
Revenue
$247.22M
Net income
$-20.39M
Diluted EPS
-0.30
Operating cash flow
$11.05M
Free cash flow
$4.79M
Fetching…
Sources
Revenue
$290.38M
Net income
$-589.00K
Diluted EPS
-0.01
Operating cash flow
$9.79M
Free cash flow
$3.10M
Fetching…
Sources
Revenue
$249.25M
Net income
$-21.16M
Diluted EPS
-0.31
Operating cash flow
$8.26M
Free cash flow
$4.17M
Fetching…
Sources
Revenue
$240.68M
Net income
$-52.40M
Diluted EPS
-0.78
Operating cash flow
$-9.50M
Free cash flow
$-15.70M
Fetching…
Sources
Revenue
$234.42M
Net income
$-130.56M
Diluted EPS
-1.97
Operating cash flow
$-18.28M
Free cash flow
$-21.24M
Fetching…
Sources
Revenue
$282.65M
Net income
$755.00K
Diluted EPS
0.01
Operating cash flow
$10.72M
Free cash flow
$7.65M
Fetching…
Sources
Revenue
$243.97M
Net income
$-23.25M
Diluted EPS
-0.35
Operating cash flow
$26.78M
Free cash flow
$21.54M
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.54 vs current price $19.38
Wall Street consensus is the average analyst price target: $27.76 (5,042.6% higher than our fair-value estimate).
Our most-likely fair value is $0.54 a share — about 97.2% below today's price of $19.38, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $283.3M. Interest coverage -27.7x.
Net debt
$283.26M
Interest coverage
-27.67x
Tandem Diabetes Care, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TNDM
BASELINE
Tandem Diabetes Care, Inc.
Total debt $739.25M Interest coverage -27.67x This is the baseline the peer rows are being compared against.
Total debt $948.40M Interest coverage 7.98x This peer still has a real interest-payment cushion, while TNDM does not.
Total debt $1.40B Interest coverage 49.83x This peer still has a real interest-payment cushion, while TNDM does not.
Total debt $28.15B Interest coverage 9.55x This peer still has a real interest-payment cushion, while TNDM does not.
Total debt $32.72B Interest coverage 16.33x This peer still has a real interest-payment cushion, while TNDM does not.
Total debt $62.82M Interest coverage -13.80x Neither company has much profit cushion over interest right now.
What you should know
The case for and against TNDM
2 Rewards
1 Risk
Rewards
-
Revenue grew 2.6% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -48.0% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
121.92x
P/B
10.34x
P/S
1.29x
EV/EBITDA
-64.74x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
56.0%
Operating margin
-5.4%
Net margin
-6.1%
ROE
-48.0%
ROA
-2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
5.67x
Current ratio
3.18x
Quick ratio
2.44x
Total debt
$739.25M
Total cash
$456.00M
Growth
How the business has been compounding
Revenue TTM
$1.04B
Revenue 5Y CAGR
9.6%
EPS TTM
-0.91
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-5.52M
Free CF TTM
$-29.67M
FCF margin
-2.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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