Tandem Diabetes Care (NasdaqGM:TNDM) - Share price, News & Analysis

TNDM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

TNDM Stock Overview

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.

Rewards

Trading at 23.7% below our estimate of its fair value

Earnings are forecast to grow 47.13% per year

Became profitable this year

Risk Analysis

Shareholders have been diluted in the past year

Tandem Diabetes Care Competitors

Medtronic

NYSE:MDT

US$138.9b

Becton Dickinson

NYSE:BDX

US$71.6b

DexCom

NasdaqGS:DXCM

US$30.3b

Insulet

NasdaqGS:PODD

US$13.2b

Price History & Performance

Summary of all time highs, changes and price drops for Tandem Diabetes Care
Historical stock prices
Current Share Price	US$72.99
52 Week High	US$155.86
52 Week Low	US$67.03
Beta	0.64
1 Month Change	-37.82%
3 Month Change	-30.16%
1 Year Change	-13.61%
3 Year Change	14.17%
5 Year Change	790.34%
Change since IPO	-62.10%

Shareholder Returns

	TNDM	US Medical Equipment	US Market
7D	3.8%	3.0%	0.1%
1Y	-13.6%	-16.4%	-12.7%

Return vs Industry: TNDM exceeded the US Medical Equipment industry which returned -15.5% over the past year.

Return vs Market: TNDM underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is TNDM's price volatile compared to industry and market?
TNDM volatility
TNDM Average Weekly Movement	8.1%
Medical Equipment Industry Average Movement	10.6%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: TNDM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TNDM's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	2,000	John Sheridan	https://www.tandemdiabetes.com

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.

Tandem Diabetes Care Fundamentals Summary

How do Tandem Diabetes Care's earnings and revenue compare to its market cap?
TNDM fundamental statistics
Market Cap	US$4.58b
Earnings (TTM)	US$5.90m
Revenue (TTM)	US$737.67m

792.0x

P/E Ratio

6.3x

P/S Ratio

Is TNDM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNDM income statement (TTM)
Revenue	US$737.67m
Cost of Revenue	US$343.65m
Gross Profit	US$394.02m
Other Expenses	US$388.13m
Earnings	US$5.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.092
Gross Margin	53.41%
Net Profit Margin	0.80%
Debt/Equity Ratio	64.5%

How did TNDM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

23.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TNDM ($72.99) is trading below our estimate of fair value ($95.69)

Significantly Below Fair Value: TNDM is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: TNDM is poor value based on its PE Ratio (792x) compared to the US Medical Equipment industry average (34.4x).

PE vs Market: TNDM is poor value based on its PE Ratio (792x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: TNDM is poor value based on its PEG Ratio (16.8x)

Price to Book Ratio

PB vs Industry: TNDM is overvalued based on its PB Ratio (10.7x) compared to the US Medical Equipment industry average (2.4x).

Future Growth

How is Tandem Diabetes Care forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

47.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNDM's forecast earnings growth (47.1% per year) is above the savings rate (1.9%).

Earnings vs Market: TNDM's earnings (47.1% per year) are forecast to grow faster than the US market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TNDM's revenue (16.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: TNDM's revenue (16.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TNDM's Return on Equity is forecast to be low in 3 years time (10.5%).

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

43.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TNDM has high quality earnings.

Growing Profit Margin: TNDM became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TNDM has become profitable over the past 5 years, growing earnings by 43% per year.

Accelerating Growth: TNDM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TNDM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (16.1%).

Return on Equity

High ROE: TNDM's Return on Equity (1.3%) is considered low.

Financial Health

How is Tandem Diabetes Care's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TNDM's short term assets ($818.5M) exceed its short term liabilities ($131.8M).

Long Term Liabilities: TNDM's short term assets ($818.5M) exceed its long term liabilities ($446.1M).

Debt to Equity History and Analysis

Debt Level: TNDM has more cash than its total debt.

Reducing Debt: TNDM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TNDM's debt is well covered by operating cash flow (34.2%).

Interest Coverage: TNDM's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate TNDM'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 TNDM's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TNDM has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure

CEO

John Sheridan (66 yo)

9.08yrs

Tenure

US$5,739,882

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 ($USD5.74M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TNDM's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: TNDM's board of directors are considered experienced (3.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: TNDM 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 2.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31