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Tandem Diabetes Care Inc. (TNDM) Fundamental Analysis & AI Grade 2026

TNDM Nasdaq Surgical & Medical Instruments & Apparatus DE CIK: 0001438133
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
76% Confidence
N/A
C
76% Conf
Pending
Analysis scheduled

📊 TNDM Key Takeaways

Revenue: $247.2M
Net Margin: -8.2%
Free Cash Flow: $4.8M
Current Ratio: 3.58x
Debt/Equity: 4.54x
EPS: $-0.30
AI Grade: C with 76% confidence
Tandem Diabetes Care Inc. (TNDM) receives a C fundamental grade with 76% confidence from our AI analysis based on SEC 10-K filings. With revenue of $247.2M, net profit margin of -8.2%, and return on equity (ROE) of -15.4%, Tandem Diabetes Care Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete TNDM stock analysis for 2026.

Is Tandem Diabetes Care Inc. (TNDM) a Good Investment?

Claude

Tandem Diabetes Care generates solid revenue growth (7.9% YoY) and maintains respectable 55.3% gross margins, but the company remains unprofitable at the operating level (-$17.4M) with minimal free cash flow ($4.8M or 1.9% margin). Most critically, the company carries unsustainable leverage at 4.54x Debt/Equity ratio ($601.8M debt against only $132.4M equity), creating severe financial distress risk that outweighs modest revenue gains.

Tandem Diabetes Care Inc. Key Strengths (TNDM)

Claude
  • + Strong gross margin of 55.3% demonstrates competitive positioning and pricing power in medical devices
  • + Consistent revenue growth of 7.9% YoY indicates steady market demand for diabetes management products
  • + Excellent short-term liquidity with current ratio of 3.58x and $179.3M cash provides near-term operational buffer

TNDM Stock Risks: Tandem Diabetes Care Inc. Investment Risks

Claude
  • ! Operating losses of -$17.4M and net losses of -$20.4M show core business is unprofitable despite $247.2M revenue
  • ! Extreme leverage with 4.54x Debt/Equity ratio ($601.8M long-term debt vs $132.4M stockholders equity) is unsustainable and limits financial flexibility
  • ! Minimal free cash flow generation of only $4.8M (1.9% FCF margin) insufficient to service debt obligations without equity dilution or asset sales

Key Metrics to Watch

Claude
  • * Operating margin trajectory - must achieve profitability to justify debt load
  • * Free cash flow generation and sustainability - critical for debt service capability
  • * Debt refinancing risk and covenant compliance - high leverage limits future financing options

Tandem Diabetes Care Inc. (TNDM) Financial Metrics & Key Ratios

Revenue
$247.2M
Net Income
$-20.4M
EPS (Diluted)
$-0.30
Free Cash Flow
$4.8M
Total Assets
$1.2B
Cash Position
$179.3M

💡 AI Analyst Insight

The relatively thin 1.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.58x current ratio provides a solid financial cushion.

TNDM Profit Margin, ROE & Profitability Analysis

Gross Margin 55.3%
Operating Margin -7.1%
Net Margin -8.2%
ROE -15.4%
ROA -1.8%
FCF Margin 1.9%

TNDM vs Healthcare Sector: How Tandem Diabetes Care Inc. Compares

How Tandem Diabetes Care Inc. compares to Healthcare sector averages

Net Margin
TNDM -8.2%
vs
Sector Avg 12.0%
TNDM Sector
ROE
TNDM -15.4%
vs
Sector Avg 15.0%
TNDM Sector
Current Ratio
TNDM 3.6x
vs
Sector Avg 2.0x
TNDM Sector
Debt/Equity
TNDM 4.5x
vs
Sector Avg 0.6x
TNDM Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Tandem Diabetes Care Inc. Stock Overvalued? TNDM Valuation Analysis 2026

Based on fundamental analysis, Tandem Diabetes Care Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.

Return on Equity
-15.4%
Sector avg: 15%
Net Profit Margin
-8.2%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
4.54x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Tandem Diabetes Care Inc. Balance Sheet: TNDM Debt, Cash & Liquidity

Current Ratio
3.58x
Quick Ratio
3.07x
Debt/Equity
4.54x
Debt/Assets
88.5%
Interest Coverage
N/A
Long-term Debt
$601.8M

TNDM Revenue & Earnings Growth: 5-Year Financial Trend

TNDM 5-year financial data: Year 2021: Revenue $702.8M, Net Income -$24.8M, EPS $-0.42. Year 2022: Revenue $801.2M, Net Income -$34.4M, EPS $-0.56. Year 2023: Revenue $801.2M, Net Income $15.6M, EPS $0.24. Year 2024: Revenue $940.2M, Net Income -$94.6M, EPS $-1.47. Year 2025: Revenue $1.0B, Net Income -$222.6M, EPS $-3.43.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Tandem Diabetes Care Inc.'s revenue has grown significantly by 44% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.43 indicates the company is currently unprofitable.

TNDM Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
1.9%
Free cash flow / Revenue

TNDM Quarterly Earnings & Performance

Quarterly financial performance data for Tandem Diabetes Care Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $234.4M -$20.4M $-0.30
Q3 2025 $244.0M -$21.2M $-0.31
Q2 2025 $221.9M -$30.8M $-0.47
Q1 2025 $191.7M -$42.7M $-0.65
Q3 2024 $185.6M -$23.3M $-0.35
Q2 2024 $195.9M -$30.8M $-0.47
Q1 2024 $169.4M -$42.7M $-0.65
Q3 2023 $185.6M -$33.0M $-0.51

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Tandem Diabetes Care Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$11.1M
Cash generated from operations
Capital Expenditures
$6.3M
Investment in assets
Dividends
None
No dividend program

TNDM SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Tandem Diabetes Care Inc. (CIK: 0001438133)

📋 Recent SEC Filings

Date Form Document Action
May 22, 2026 4 xslF345X06/wk-form4_1779500208.xml View →
May 22, 2026 4 xslF345X06/wk-form4_1779480786.xml View →
May 22, 2026 4 xslF345X06/wk-form4_1779480707.xml View →
May 22, 2026 4 xslF345X06/wk-form4_1779480632.xml View →
May 22, 2026 4 xslF345X06/wk-form4_1779480532.xml View →

Frequently Asked Questions about TNDM

What is the AI rating for TNDM?

Tandem Diabetes Care Inc. (TNDM) has an AI grade of C with 76% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TNDM's key strengths?

Claude: Strong gross margin of 55.3% demonstrates competitive positioning and pricing power in medical devices. Consistent revenue growth of 7.9% YoY indicates steady market demand for diabetes management products.

What are the risks of investing in TNDM?

Claude: Operating losses of -$17.4M and net losses of -$20.4M show core business is unprofitable despite $247.2M revenue. Extreme leverage with 4.54x Debt/Equity ratio ($601.8M long-term debt vs $132.4M stockholders equity) is unsustainable and limits financial flexibility.

What is TNDM's revenue and growth?

Tandem Diabetes Care Inc. reported revenue of $247.2M.

Does TNDM pay dividends?

Tandem Diabetes Care Inc. does not currently pay dividends.

Where can I find TNDM SEC filings?

Official SEC filings for Tandem Diabetes Care Inc. (CIK: 0001438133) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TNDM's EPS?

Tandem Diabetes Care Inc. has a diluted EPS of $-0.30.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TNDM's fundamental grade?

Based on our AI fundamental analysis in June 2026, Tandem Diabetes Care Inc. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TNDM stock overvalued or undervalued?

Valuation metrics for TNDM: ROE of -15.4% (sector avg: 15%), net margin of -8.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is TNDM's AI grade for 2026?

Our dual AI analysis gives Tandem Diabetes Care Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TNDM's free cash flow?

Tandem Diabetes Care Inc.'s operating cash flow is $11.1M, with capital expenditures of $6.3M. FCF margin is 1.9%.

How does TNDM compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -8.2% (avg: 12%), ROE -15.4% (avg: 15%), current ratio 3.58 (avg: 2).

Is Tandem Diabetes Care Inc. carrying too much debt?

TNDM has a debt-to-equity ratio of 4.54x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 3.58 suggests adequate short-term liquidity.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI