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Tandem Diabetes Care (TNDM)
NASDAQ:TNDM
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Tandem Diabetes Care
(NASDAQ:TNDM)
49Neutral
Positive Factors
Earnings
Q1 revenue of $234.4M beat both CG and consensus estimates, driven by US and OUS supplies revenue.
Financial Performance
Worldwide revenue in 1Q was $234.4M, up 22% year over year, which exceeded the Street’s $220.3M estimate.
Product Pipeline
Tandem has a promising set up going forward given the broad product offering and pipeline, T2D opportunity, gross & operating margin expansion opportunity, and growing free cash flow.
Negative Factors
Revenue Forecast
TNDM comments suggest Q2 total revenue in the $234M range, which is below Street of $245M.
Sales Expectations
Management's comments imply Q2 sales below prior consensus.
Tandem Diabetes Care (TNDM) vs. S&P 500 (SPY)
Market Cap
$1.54B
Dividend YieldN/A
Average Volume (3M)1.75M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth27.65%
EPS Growth-28.22%
CountryUS
Employees2,650
SectorHealthcare
Sector Strength41
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.97
Shares Outstanding66,607,210
10 Day Avg. Volume1,616,051
30 Day Avg. Volume1,749,762
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)9.83
Price to Sales (P/S)0.00
P/FCF Ratio-30.49
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit3.84
Enterprise Value/Ebitda-4.66
Forecast
1Y Price Target
$34.75Price Target Upside50.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Tandem Diabetes Care Business Overview & Revenue Model
Company DescriptionTandem Diabetes Care, Inc. is a medical device company focused on the design, development, and commercialization of products for people with insulin-dependent diabetes. The company operates within the healthcare sector, specifically in the field of diabetes management technology. Its core products include insulin pump systems and related software applications that enhance the lives of individuals managing diabetes by providing reliable and user-friendly solutions.
How the Company Makes MoneyTandem Diabetes Care generates revenue primarily through the sale of its insulin pump systems and associated supplies, such as cartridges and infusion sets. The company's flagship product line, the t:slim X2 insulin pump, is a key driver of its revenue. Additionally, Tandem offers software applications that integrate with its hardware to provide continuous glucose monitoring and data management services. Revenue is also derived from customer support services and training programs for healthcare providers and patients. Tandem's earnings are bolstered by strategic partnerships with healthcare providers and insurance companies, facilitating broader access to its products. The company also invests in research and development to innovate and enhance its offerings, which can contribute to increased market share and revenue growth.
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 revenue growth is strong, 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.40
Negative
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.35
Negative
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.45
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.10B | 940.20M | 747.72M | 801.22M | 702.80M | 498.83M | Gross Profit |
| 513.31M | 489.57M | 367.69M | 412.99M | 376.21M | 260.52M | EBIT |
| -178.33M | -99.13M | -233.23M | -61.81M | 8.81M | -7.96M | EBITDA |
| -150.68M | -99.13M | -194.66M | -72.31M | 36.50M | -13.03M | Net Income Common Stockholders |
| -183.87M | -96.03M | -222.61M | -94.59M | 15.57M | -34.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 467.81M | 438.33M | 467.91M | 616.90M | 623.81M | 484.94M | Total Assets |
| 941.04M | 967.66M | 952.66M | 1.05B | 905.14M | 716.41M | Total Debt |
| 477.55M | 473.56M | 415.67M | 419.88M | 314.67M | 228.32M | Net Debt |
| 418.57M | 404.33M | 356.80M | 247.36M | 243.49M | 133.71M | Total Liabilities |
| 697.98M | 704.56M | 639.03M | 612.84M | 472.02M | 350.11M | Stockholders Equity |
| 243.06M | 263.10M | 313.63M | 439.95M | 433.11M | 366.31M |
| Cash Flow | Free Cash Flow | ||||
| -50.20M | 4.99M | -83.41M | 7.51M | 87.85M | -7.63M | Operating Cash Flow |
| 13.94M | 24.23M | -31.81M | 50.46M | 111.36M | 24.67M | Investing Cash Flow |
| -9.24M | -23.48M | -85.74M | 33.17M | -186.88M | -296.06M | Financing Cash Flow |
| -9.91M | 8.37M | 4.11M | 16.88M | 51.93M | 314.44M |
Tandem Diabetes Care Technical Analysis
Positive
23.08
Price Trends
19.19
Positive
26.42
Negative
31.87
Negative
Market Momentum
1.17
Negative
66.82
Neutral
66.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNDM, the sentiment is Positive. The current price of 23.08 is above the 20-day moving average (MA) of 20.17, above the 50-day MA of 19.19, and below the 200-day MA of 31.87, indicating a neutral trend. The MACD of 1.17 indicates Negative momentum. The RSI at 66.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNDM.
Tandem Diabetes Care Risk Analysis
Tandem Diabetes Care disclosed 62 risk factors in its most recent earnings report. Tandem Diabetes Care reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tandem Diabetes Care Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $33.52B | 64.17 | 23.72% | ― | 9.11% | -17.87% | |
80 Outperform | $1.95B | 31.03 | 19.36% | ― | 34.43% | 31.90% | |
76 Outperform | $22.85B | 58.44 | 37.92% | ― | 23.49% | 71.25% | |
65 Neutral | $1.22B | 15.90 | 5.12% | ― | -0.05% | ― | |
63 Neutral | $2.42B | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
52 Neutral | $5.15B | 3.02 | -44.64% | 2.82% | 16.45% | -0.47% | |
49 Neutral | $1.54B | ― | -92.31% | ― | 27.65% | -28.22% |
* Healthcare Sector Average
Performance Comparison
TNDM
Tandem Diabetes Care
23.08
-24.15
-51.13%
DXCM
Dexcom
85.48
-45.21
-34.59%
PODD
Insulet
324.75
140.61
76.36%
UFPT
Ufp Technologies
253.30
-4.78
-1.85%
LIVN
LivaNova
44.40
-16.88
-27.55%
AHCO
AdaptHealth
9.02
-0.87
-8.80%
Tandem Diabetes Care Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 36.97%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong performance in Q1 with record sales and strategic expansions, particularly in the pharmacy channel and international markets. Significant product developments and operational improvements have positioned the company well, although some challenges remain in realizing immediate type 2 diabetes market impacts and navigating market transitions.Q1-2025 Updates
Positive Updates
Record First-Quarter Sales
Achieved record first-quarter sales of $234 million, marking a 22% year-over-year growth. This includes $151 million in the U.S. (15% increase) and $84 million internationally (35% increase).
Successful Product Launch and FDA Clearance
FDA cleared Control-IQ+ for type 2 diabetes, and the New England Journal of Medicine published results highlighting its benefits. This more than doubles the addressable market.
Strong Customer Retention and New Starts
Double-digit increase in new pump starts, with significant conversions from multiple daily injections. Renewal rates remain high with a healthy product mix.
Gross Margin and EBITDA Improvement
Achieved a 51% gross margin and improved adjusted EBITDA margin by 5 percentage points year-over-year, driven by pump cost efficiencies and favorable pricing.
Expansion in Pharmacy Channel
Approximately 30% of U.S. lives are covered under the pharmacy benefit, with improvement in pricing and reduced out-of-pocket costs for customers.
International Growth and Direct Sales Plans
Strong international sales momentum with plans to begin direct sales in select countries by 2026, enhancing market presence and financial performance.
Negative Updates
Limited Type 2 Commercial Impact in 2025
Despite FDA clearance, only modest contribution from type 2 diabetes sales is expected in 2025 due to reimbursement and Medicare access challenges.
Potential Headwinds from Market Transitions
Anticipate $15 million to $20 million headwinds in the back half of 2025 due to transitioning to direct sales in select international markets.
Sales Force Realignment Disruptions
Although managed well, the sales force expansion and realignment caused some temporary disruptions, with full productivity expected by Q4.
Company Guidance
During the Tandem Diabetes Care First Quarter 2025 Earnings Conference Call, the company reported robust performance metrics, including a 22% year-over-year growth in worldwide sales, reaching a record $234 million. The U.S. saw a 15% increase in sales, driven by healthy pump shipments, strong supply sales, and improved average selling prices. Internationally, sales surged by 35% year-over-year, totaling $84 million, marking the highest quarterly sales to date. The company also reported a significant improvement in adjusted EBITDA margins by five percentage points year-over-year. Tandem reiterated its commitment to delivering double-digit growth and improved profitability, maintaining its 2025 guidance for sales to range between $997 million and just over $1 billion and aiming for a 54% gross margin. Additionally, Tandem highlighted FDA clearance of Control-IQ+ for type 2 diabetes, which has expanded their addressable market, and discussed strategic initiatives such as pharmacy channel expansion and international sales operations.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.