Last Updated: 10 Nov 2024
Executive Summary
Tandem Diabetes Care Inc. (TNDM) is a medical device company specializing in insulin delivery systems for people with diabetes. Despite strong revenue growth, the company faces challenges with profitability, with negative EBITDA and EPS. However, analysts remain optimistic about TNDM's long-term prospects, with a majority rating it as a Buy or Strong Buy. The current stock price of $30.6 is below the 52-week high but above the 50- and 200-day moving averages.
Company Overview
Tandem Diabetes Care develops and markets insulin pumps, continuous glucose monitors, and related accessories. Its products aim to improve the lives of people with diabetes by providing more convenient and effective insulin delivery. The company has a strong presence in the United States and is expanding into international markets.
Fundamental Analysis
Revenue: TNDM's revenue has grown steadily in recent years, reaching $854.35 million in the trailing twelve months.
Profitability: The company has struggled with profitability, with a negative EBITDA of -$131.29 million and EPS of -$1.78 for the same period.
Margins: TNDM's profit margins are negative, with a gross margin of -0.148 and an operating margin of -0.107.
Balance Sheet: The company has a strong balance sheet with $1.1 billion in cash and equivalents and minimal debt.
Technical Analysis
Trend: TNDM's stock price has been trending upward since the beginning of the year.
Moving Averages: The stock is currently trading above its 50- and 200-day moving averages, indicating a positive trend.
Support and Resistance: The stock has support at $28.0 and resistance at $32.0.
Short Term Outlook
In the short term, TNDM's stock price may continue to fluctuate within the current trading range. The company's upcoming earnings report and any news on product approvals or market expansion could impact the stock's performance.
Long Term Outlook
Analysts are generally optimistic about TNDM's long-term prospects. The company's innovative products and strong market position provide a solid foundation for future growth. However, the company needs to improve its profitability to sustain its growth and attract investors.
Analyst Recommendations
Strong Buy: 5
Buy: 9
Hold: 5
Sell: 1
Strong Sell: 0
The majority of analysts recommend buying or strongly buying TNDM's stock, indicating their positive outlook on the company's long-term potential.
