DB:TD5A

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Tandem Diabetes Care

Executive Summary

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Tandem Diabetes Care's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TD5A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.6%

TD5A

-0.9%

DE Medical Equipment

4.4%

DE Market


1 Year Return

11.9%

TD5A

33.7%

DE Medical Equipment

4.4%

DE Market

Return vs Industry: TD5A underperformed the German Medical Equipment industry which returned 33.7% over the past year.

Return vs Market: TD5A exceeded the German Market which returned 4.4% over the past year.


Shareholder returns

TD5AIndustryMarket
7 Day-6.6%-0.9%4.4%
30 Day-12.0%6.2%12.1%
90 Day2.4%22.3%5.4%
1 Year11.9%11.9%35.3%33.7%6.1%4.4%
3 Year889.1%889.1%121.3%117.3%-0.6%-8.2%
5 Year-27.5%-27.5%278.8%265.1%10.4%-3.8%

Price Volatility Vs. Market

How volatile is Tandem Diabetes Care's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tandem Diabetes Care undervalued compared to its fair value and its price relative to the market?

23.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TD5A (€73.5) is trading above our estimate of fair value (€33.08)

Significantly Below Fair Value: TD5A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TD5A is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: TD5A is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TD5A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TD5A is overvalued based on its PB Ratio (22.4x) compared to the DE Medical Equipment industry average (5.1x).


Next Steps

Future Growth

How is Tandem Diabetes Care forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

80.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TD5A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: TD5A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TD5A's is expected to become profitable in the next 3 years.

Revenue vs Market: TD5A's revenue (19% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: TD5A's revenue (19% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TD5A's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Tandem Diabetes Care performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TD5A is currently unprofitable.

Growing Profit Margin: TD5A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TD5A is unprofitable, but has reduced losses over the past 5 years at a rate of 5.7% per year.

Accelerating Growth: Unable to compare TD5A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TD5A is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (8.2%).


Return on Equity

High ROE: TD5A has a negative Return on Equity (-8.03%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tandem Diabetes Care's financial position?


Financial Position Analysis

Short Term Liabilities: TD5A's short term assets ($280.9M) exceed its short term liabilities ($99.6M).

Long Term Liabilities: TD5A's short term assets ($280.9M) exceed its long term liabilities ($36.5M).


Debt to Equity History and Analysis

Debt Level: TD5A is debt free.

Reducing Debt: TD5A has no debt compared to 5 years ago when its debt to equity ratio was 28.9%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TD5A has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TD5A is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25.3% per year.


Next Steps

Dividend

What is Tandem Diabetes Care's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TD5A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TD5A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TD5A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TD5A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TD5A's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

John Sheridan (64yo)

1.25yrs

Tenure

US$10,560,937

Compensation

Mr. John F. Sheridan has been President and Chief Executive Officer at Tandem Diabetes Care, Inc., since March 01, 2019 and served as its Chief Operating Officer and Executive Vice President since April 20 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD10.56M) is above average for companies of similar size in the German market ($USD2.40M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Sheridan
President1.25yrsUS$10.56m0.0063% $263.4k
Leigh Vosseller
Executive VP7.42yrsUS$5.39m0.0078% $327.1k
Susan Morrison
Executive VP & Chief Administrative Officer6.75yrsUS$5.39m0.010% $438.7k
David Berger
Executive VP6.83yrsUS$5.39m0.0079% $334.2k
Brian Hansen
Executive VP & Chief Commercial Officer4.33yrsUS$5.40m0.0078% $327.1k
Manuel Jaime
Senior Vice President of Technology & Digital Health1.33yrsno datano data
Ross Sylvia
Vice President of Marketing1.17yrsno datano data
Elizabeth Gasser
Executive Vice President of Strategy & Corporate Development0.42yrno datano data
Tom Fox
Vice President of Human Resources2.83yrsno datano data
Jim Leal
Senior Vice President of Operations2.83yrsno datano data

2.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: TD5A's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Sheridan
President1.25yrsUS$10.56m0.0063% $263.4k
Edward Cahill
Independent Director11.08yrsUS$202.47kno data
Rebecca Robertson
Independent Director1.42yrsUS$1.21mno data
Douglas Roeder
Independent Director11.08yrsUS$215.97kno data
Kim Blickenstaff
Chairman of the Board1.25yrsUS$10.54m1.06% $44.5m
Christopher Twomey
Independent Director6.92yrsUS$216.97k0.071% $3.0m
Dick Allen
Lead Independent Director1.25yrsUS$244.97k0.078% $3.3m

1.4yrs

Average Tenure

64yo

Average Age

Experienced Board: TD5A's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Tandem Diabetes Care, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tandem Diabetes Care, Inc.
  • Ticker: TD5A
  • Exchange: DB
  • Founded: 2006
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$4.770b
  • Listing Market Cap: US$4.215b
  • Shares outstanding: 60.10m
  • Website: https://www.tandemdiabetes.com

Number of Employees


Location

  • Tandem Diabetes Care, Inc.
  • 11075 Roselle Street
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNDMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2013
TD5ADB (Deutsche Boerse AG)YesCommon StockDEEURNov 2013
0M0FLSE (London Stock Exchange)YesCommon StockGBUSDNov 2013

Biography

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. 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 delivery system with Basal-IQ Technology; t:slim X2 with 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 and supported blood glucose meters for users, their caregivers, and their healthcare providers. Its products in development include t:sport insulin delivery system; and connected (mobile) health offerings. 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 founded in 2006 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 23:35
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.