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ZYBERNO

Stock Report

Updated Aug 31, 2026

Tandem Diabetes Care, Inc. (TNDM)

Healthcare • NASDAQ

$21.43

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

20.0/100

POOR BUSINESS

Tandem Diabetes Care, Inc. (TNDM) scores 20/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full TNDM quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-52.6%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

0.4%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full TNDM valuation analysis · → View full TNDM Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-46.0%)

Debt-to-Equity (Solvency Risk):CRITICAL (2.10x)

Operating Margin (Operational Efficiency):CRITICAL (-4.4%)

Return on Capital (Capital Efficiency):CRITICAL (-4.6%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Tandem Diabetes Care, Inc. (TNDM) stock report — Zyberno Score 20/100 (POOR BUSINESS), Margin of Safety -100.0%, -53% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, Tandem Diabetes Care, Inc. (TNDM) trades at $21.43 against an estimated intrinsic value per share of $0.44 — a -100.0% Margin of Safety based on Owner Earnings of $2.15M TTM, projected at 3.1% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -52.6% annually.

Over the trailing twelve months, TNDM generated $2.15M in Owner Earnings. Capital was deployed as follows: $23.25M invested in capital expenditures. Reinvestment rate: -6.6%. Owner Earnings have grown at 3.1% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:21.43

Market Cap:$1.48B

Valuation Multiples (3)

P/B Ratio:11.34x

P/S Ratio:1.42x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$2.10B

Price Action & Momentum (3)

12-1 Momentum:

+10.2% (23th pctile)

📈 Click to view full TNDM Momentum analysis →

Momentum Percentile:23 / 100

% of 52-Week High:72.3%

B. Profitability Assessment

Return Metrics (5)

ROE:

-46.0%

📊 Click to view full TNDM ROE analysis →

ROA:-6.2%

Roic:

-4.6%

📊 Click to view full TNDM ROIC analysis →

Reinvestment Rate:-6.6%

Fundamental Growth Rate (g):0.3%

Margin Analysis (3)

Operating Margin Ttm:-4.4%

Net Margin Ttm:-6.1%

Ebitda Margin:-3.1%

TTM Performance (3)

Gross Margin Ttm:56.0%

Operating Margin Ttm:-4.4%

Net Margin Ttm:-6.1%

Yield Metrics (3)

Earnings Yield:-$4.34

Owner Earnings Yield:$0.15

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.70

📊 Click to view full TNDM Earnings Surprise analysis →

EPS Surprise vs Expected:64.5%

Latest Earnings Filed:2026-08-06

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):10.4%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):34.9%

Operating Cash Flow Growth Rate (Linear):24.8%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:3.18x

Quick Ratio:2.65x

Cash Ratio:0.25x

Leverage Analysis (3)

Debt To Equity Ttm:2.10x

Debt-to-Equity Ratio:2.10x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-21.29x

Times Interest Earned:-21.29

Capital Structure (4)

Working Capital:551,634,000.00

Cash And Cash Equivalents:62,818,000.00

Long Term Debt:$602.58M

Net Debt:$621.14M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.04B

Linear Growth: 10.4%

📊 Click to view full TNDM Revenue analysis & methodology →

Cost Of Revenue Ttm:$458.10M

Profitability Breakdown (2)

Gross profit TTM: $583.32M

Linear Growth: 14.2%

📊 Click to view full TNDM Gross Profit analysis & methodology →

-$45.80M

Bottom Line Performance (3)

-$63.32M

Income Before Tax:-$240.81M

Ebitda Ttm:-32,303,000.00

Operating Expenses (5)

Operating Expenses:629,115,000.00

R And D Expense:187,746,000.00

Sga Expense:441,369,000.00

Income Tax Expense:$2.32M

Interest Expense:8,794,000.00

Expense Ratios (3)

R And D To Revenue Percentage:73.8%

Sga To Revenue Percentage:173.4%

Ebitda Margin:-3.1%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.15B

Current Assets:$804.64M

Ppe Net:84,501,000.00

Goodwill:0.00

Intangible Assets:$11.72M

Liability Structure (4)

Total Liabilities:1,023,814,000.00

Current Liabilities:253,005,000.00

Long Term Debt:$602.58M

Short Term Debt:$81.38M

Equity & Capital (3)

Equity:$130.39M

Retained Earnings:-$1.29B

Common Stock:200,000,000.00

Working Capital Items (3)

Accounts Receivable:162,065,000.00

Inventory:135,106,000.00

Accounts Payable:64,130,000.00

Special Items (2)

Contract Liabilities:8,430,000.00

Stock Based Compensation:15,741,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $19.61M

Linear Growth: 24.8%

Free cash flow TTM: -$3.64M

Linear Growth: 34.9%

📊 Click to view full TNDM Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$195.45M

Capital Expenditures Ttm:23,251,000.00

Financing Activities (3)

Financing Cash Flow:$274.16M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:-6,730,000.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:13,492,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.93

-$0.93

Earnings Per Share Ttm:-$0.92

Revenue & Cash Per Share (2)

Sales Per Share Ttm:15.09

Operating Cash Flow Per Share:-$0.14

Book Value & Capital (2)

Book Value Per Share:$1.89

Cash Per Share:0.91

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.03x

Working Capital Turnover Ttm:1.89x

Receivables Management (2)

Receivables Turnover Ttm:6.43x

Days Sales Outstanding Ttm:56.80

Inventory Management (2)

Inventory Turnover Ttm:3.39x

Days Inventory Outstanding Ttm:107.65

Payables & Cash Cycle (2)

Days Payable Outstanding:51.10

Cash Conversion Cycle:113.35

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00

Quality Score:25.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $2.15M

Linear Growth: 3.1%

📊 Click to view full TNDM Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.03

Owner Earnings Yield:$0.15

Growth Assessment (1)

Owner Earnings Growth Rate:$3.11

Damodaran Growth Analysis (2)

Reinvestment Rate:-6.6%

Fundamental Growth Rate (g):0.3%

Intrinsic Value Models (1)

Intrinsic Value:

$30.31M

📊 Click to view full TNDM DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full TNDM valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

-52.6%

📊 Click to view full TNDM expected return analysis →

Forward Expected Return (Yield + Growth):

0.4%

📊 Click to view full TNDM expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (1)

Revenue Growth Rate (Linear):10.4%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):34.9%

Operating Cash Flow Growth Rate (Linear):24.8%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):14.2%

Book Value Growth Rate (Linear):-27.6%

Owner Earnings Growth Rate:$3.11

C. Company Profile & Context

Corporate Information (6)

Symbol:TNDM

Company Name:Tandem Diabetes Care, Inc.

Sector:Healthcare

Industry:Medical Devices

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:69.01M

Shares Outstanding Basic:69.01M

Shares Outstanding Diluted:69.01M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 22:17:20 UTC

Data Timestamp:2026-08-31T22:17:20.124382