Tandem Diabetes Care (TNDM) AI Stock Analysis

• Market Cap: $845.29M
• Dividend Yield: N/A
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 25.84%
• EPS Growth: -47.67%
• Country: US
• Employees: 2,650
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): -0.48
• Shares Outstanding: 67,569,470
• 10 Day Avg. Volume: 2,012,703
• 30 Day Avg. Volume: 2,449,665
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: -7.79
• 1Y Price Target: $18.75
• Price Target Upside: 49.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 21

• Rating: 49 Neutral
• Price Target: $12.00 ▼(-4.08% Downside)

The overall stock score reflects significant financial performance concerns, with high leverage and negative profitability being major risks. While the earnings call and corporate events provide some positive outlook, the technical analysis and valuation indicate caution. The stock's bearish trend and negative P/E ratio suggest potential overvaluation and limited immediate upside.

Positive Factors

Growth Opportunities

Management is optimistic about the US opportunity and believes it will continue to make progress towards margin expansion and cash flow generation.

Market Dynamics

The CMS proposal could drive further adoption by increasing the number of patients interested in pump therapy and decreasing out-of-pocket costs.

Product Development

The clearance for the seven-day SteadiSet and future launch of the tubeless Mobi (Tobi) in 2026 is expected to enhance product offerings.

Negative Factors

Competitive Pressure

The company continues to face competition as it invests in the product pipeline and works towards profitability.

Growth Expectations

Management lowered new U.S. pumpers to flat-to-slightly down from up, indicating challenges in growth expectations.

Revenue Performance

Tandem missed Q2 revenue estimates, including US pump revenue, and the company’s reduced FY25 guidance reflects this.

Tandem Diabetes Care Business Overview & Revenue Model

Company Description

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:slim X2 insulin with Basal-IQ and control IQ technology; t:slim X2 with G5 Integration; and Tandem Device Updater, a tool that allows users to update their pump's software. In addition, the company offers t:connect, a web-based data management application, which provides a visual way to display diabetes therapy management data from the pump, continuous glucose monitoring, and supported blood glucose meters for users, their caregivers, and their healthcare providers; and Sugarmate, a mobile app for people with diabetes who use insulin. It has development and commercialization agreements with Dexcom, Inc. and Abbott Laboratories. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

How the Company Makes Money

Tandem Diabetes Care generates revenue primarily through the sale of its insulin delivery devices, including the t:slim X2 insulin pump and related accessories. The company also earns money from the sale of disposable supplies, such as infusion sets and reservoirs, which are necessary for the operation of their insulin pumps. A significant revenue stream comes from partnerships with insurance providers and healthcare organizations that facilitate access to their products for patients. Additionally, Tandem may benefit from collaborations with technology companies to enhance its product offerings and expand its market reach. The company's consistent focus on innovation and customer support helps to drive sales and build loyalty among users, further contributing to its overall earnings.

Tandem Diabetes Care Financial Statement Overview

Summary

Tandem Diabetes Care faces profitability challenges despite strong revenue growth. High leverage and negative cash flow trends pose financial risks, impacting long-term sustainability. The company must focus on sustaining margins and reducing debt for future financial health.

Income Statement

Tandem Diabetes Care's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 46.6%, indicating effective cost management. However, the company is struggling with profitability, as evidenced by negative net profit margin (-16.7%) and EBIT margin (-9.4%). Revenue growth is strong with a 17.2% increase from the previous year, but consistent operating losses are a concern.

Balance Sheet

The balance sheet reflects financial vulnerability with a high debt-to-equity ratio of 3.18, suggesting significant leverage. The equity ratio of 16.8% indicates heavy reliance on debt for financing. Return on equity is negative at -118.4%, reflecting poor returns for shareholders. The company maintains a reasonable cash position, but overall financial stability is weak.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in the TTM period. The operating cash flow to net income ratio is 0.08, showing limited cash generation from operations. The free cash flow to net income ratio is negative, indicating cash outflows exceeding net income. Although there is a positive free cash flow growth from 2023 to 2024, the overall cash flow health is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	940.20M	747.72M	801.22M	702.80M	498.83M
Gross Profit	526.37M	489.57M	367.69M	412.99M	376.21M	260.52M
EBITDA	-177.66M	-99.13M	-194.66M	-72.31M	36.50M	-13.03M
Net Income	-205.45M	-96.03M	-222.61M	-94.59M	15.57M	-34.38M
Balance Sheet
Total Assets	875.74M	967.66M	952.66M	1.05B	905.14M	716.41M
Cash, Cash Equivalents and Short-Term Investments	315.36M	438.33M	467.91M	616.90M	623.81M	484.94M
Total Debt	449.01M	473.56M	415.67M	419.88M	314.67M	228.32M
Total Liabilities	742.45M	704.56M	639.03M	612.84M	472.02M	350.11M
Stockholders Equity	133.28M	263.10M	313.63M	439.95M	433.11M	366.31M
Cash Flow
Free Cash Flow	-54.16M	4.99M	-83.41M	7.51M	87.85M	-7.63M
Operating Cash Flow	9.72M	24.23M	-31.81M	50.46M	111.36M	24.67M
Investing Cash Flow	52.43M	-23.48M	-85.74M	33.17M	-186.88M	-296.06M
Financing Cash Flow	-46.62M	8.37M	4.11M	16.88M	51.93M	314.44M

Tandem Diabetes Care Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNDM, the sentiment is Neutral. The current price of 12.51 is above the 20-day moving average (MA) of 11.89, below the 50-day MA of 14.83, and below the 200-day MA of 23.62, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TNDM.

Tandem Diabetes Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PODD	76 Outperform	$23.93B	103.44	19.18%	―	25.99%	-40.46%
UFPT	73 Outperform	$1.62B	24.36	19.29%	―	40.98%	34.80%
AHCO	69 Neutral	$1.28B	17.74	4.76%	―	-0.61%	―
DXCM	68 Neutral	$29.54B	52.74	22.83%	―	9.30%	-14.95%
LIVN	61 Neutral	$3.08B	30.62	-17.87%	―	8.57%	-1154.64%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
TNDM	49 Neutral	$845.29M	―	-111.91%	―	25.84%	-47.67%

Tandem Diabetes Care Corporate Events

Tandem Diabetes Care Gains FDA Clearance for SteadiSet

On August 6, 2025, Tandem Diabetes Care received FDA clearance for its SteadiSet infusion set, designed for up to seven days of insulin delivery for type 1 diabetes patients. The company plans to launch SteadiSet as a standalone product and as part of its future Tandem Mobi tubeless system, with a focus on scaling up manufacturing and pre-commercial activities in the coming quarters.

Tandem Diabetes Care Settles Patent Disputes with Roche

On May 21, 2025, Tandem Diabetes Care, Inc. and Roche entities settled patent disputes related to insulin delivery systems, agreeing to terminate pending actions and granting each other non-exclusive licenses for ten years. Additionally, Tandem held its virtual Annual Meeting of Stockholders on the same day, where eight directors were elected, executive compensation was approved, and Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025.