Tandem Diabetes Care (TNDM) AI Stock Analysis

• Market Cap: $983.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 27.65%
• EPS Growth: -28.22%
• Country: US
• Employees: 2,650
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.67
• Shares Outstanding: 66,607,210
• 10 Day Avg. Volume: 1,820,037
• 30 Day Avg. Volume: 1,587,220
• PEG Ratio: 0.06
• Price to Book (P/B): 6.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.83
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: -3.43
• 1Y Price Target: $35.33
• Price Target Upside: 141.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 48 Neutral
• Price Target: $15.00 ▲(2.53%Upside)

Tandem Diabetes Care's overall stock score is primarily impacted by financial vulnerabilities and bearish technical indicators. While the earnings call and recent corporate events show promising growth prospects and strategic initiatives, the current financial state and market momentum present significant risks.

Positive Factors

Financial Performance

Q1 revenue of $234.4M beat both CG and consensus estimates, driven by US and OUS supplies revenue.

Market Expansion

Expanding the indication into T2D could significantly expand TNDM's market potential.

Product Development

TNDM is leveraging a partnership with UVA to accelerate the development and implementation of its fully closed loop algorithm.

Negative Factors

Analyst Rating

The analyst recommendation maintains an 'UNDERPERFORM' rating with a price objective lower than the current market price.

Market Challenges

TNDM is working on payer negotiations for 2026, with a focus on growing coverage overall before driving more volume through pharmacy.

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 pump systems and related accessories. The company's key revenue streams include direct sales of the t:slim X2 Insulin Pump, sales of disposable cartridges and infusion sets, and software upgrades for its devices. Additionally, Tandem offers customer support and training services, which are integral to its business model. Significant partnerships with continuous glucose monitoring companies, such as Dexcom, enhance its product offerings and appeal in the market. The company also benefits from insurance reimbursements and healthcare provider partnerships that facilitate access to its products for end-users.

Tandem Diabetes Care Financial Statement Overview

Summary

Tandem Diabetes Care faces profitability challenges amid strong revenue growth. High leverage poses financial risks, and negative cash flow trends could impact long-term sustainability. While the company has managed to increase revenues, sustaining margins and reducing debt will be critical 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	940.20M	747.72M	801.22M	702.80M	498.83M
Gross Profit	489.57M	367.69M	412.99M	376.21M	260.52M
EBITDA	-99.13M	-194.66M	-72.31M	36.50M	-13.03M
Net Income	-96.03M	-222.61M	-94.59M	15.57M	-34.38M
Balance Sheet
Total Assets	967.66M	952.66M	1.05B	905.14M	716.41M
Cash, Cash Equivalents and Short-Term Investments	438.33M	467.91M	616.90M	623.81M	484.94M
Total Debt	473.56M	415.67M	419.88M	314.67M	228.32M
Total Liabilities	704.56M	639.03M	612.84M	472.02M	350.11M
Stockholders Equity	263.10M	313.63M	439.95M	433.11M	366.31M
Cash Flow
Free Cash Flow	4.99M	-83.41M	7.51M	87.85M	-7.63M
Operating Cash Flow	24.23M	-31.81M	50.46M	111.36M	24.67M
Investing Cash Flow	-23.48M	-85.74M	33.17M	-186.88M	-296.06M
Financing Cash Flow	8.37M	4.11M	16.88M	51.93M	314.44M

Tandem Diabetes Care Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNDM, the sentiment is Negative. The current price of 14.63 is below the 20-day moving average (MA) of 16.98, below the 50-day MA of 19.65, and below the 200-day MA of 26.86, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 27.37 is Positive, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNDM.

Tandem Diabetes Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	80 Outperform	$1.76B	27.78	19.36%	―	34.43%	31.90%
DXCM	78 Outperform	$32.89B	63.08	23.72%	―	9.11%	-17.87%
PODD	70 Outperform	$20.00B	50.56	37.92%	―	23.49%	71.25%
AHCO	68 Neutral	$1.24B	16.13	5.12%	―	-0.05%	―
LIVN	61 Neutral	$2.38B	30.62	-19.69%	―	7.97%	-592.40%
TNDM	48 Neutral	$983.79M	―	-92.31%	―	27.65%	-28.22%
Sector *	46 Neutral	C$195.87M	-3.29	-23.14%	1.84%	20.75%	-0.36%

Tandem Diabetes Care Corporate Events

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.

The most recent analyst rating on (TNDM) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Tandem Diabetes Care stock, see the TNDM Stock Forecast page.

Tandem Diabetes Care Gains CE Mark Approval

On May 16, 2025, Tandem Diabetes Care received CE mark approval for its Tandem Mobi insulin delivery system with Control-IQ+ technology. The company plans to pursue further regulatory and pre-commercial activities in the EU, aiming for commercial launches by the end of 2025.

The most recent analyst rating on (TNDM) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Tandem Diabetes Care stock, see the TNDM Stock Forecast page.