MeritValue

TANDEM DIABETES CARE INC

TNDMdata completeness 100%14 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

TANDEM DIABETES CARE INC earns about -22% on invested capital, but has diluted owners by 5% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$702.8M1$801.2M2$747.7M3$940.2M3$1.01B3
Net income$15.6M4−$94.6M5−$222.6M6−$96M6−$204.7M6
Operating cash flow$111.4M7$50.5M8−$31.8M9$24.2M9−$9.72M9
Capital expenditure$14.2M10$34.1M11$26.8M12$19.2M12$19.9M12
Free cash flow (derived)$97.2M7$16.4M8−$58.6M9$4.99M9−$29.7M9
Total debt——$285M13$348.9M14$310M14
Cash & equivalents$71.2M15$172.5M16$58.9M17$69.2M18$90.6M18
Diluted shares64.3M64.1M65.0M65.5M67.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$23.06
your share of equity
Profit it earned you last year
−$30.42
Free cash flow it threw off
−$4.41
Debt you’d be carrying
$46.08

10 shares is a claim on $23.06 of net worth that earned you −$30.42 and generated −$4.41 of cash last year, against $46.08 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-22% avg · 5y
FY21 4%FY22 -27%FY23 -32%FY24 -13%FY25 -42%

It earned an average -22% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+5% shares · 5y

Share count is up 5% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001438133-24-000028 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001438133-25-000036 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001438133-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001438133-24-000028 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001438133-25-000036 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001438133-26-000010 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001438133-24-000028 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001438133-25-000036 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001438133-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001438133-24-000028 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001438133-25-000036 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001438133-26-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2023-12-31 · accession 0001438133-25-000036 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-12-31 · accession 0001438133-26-000010 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-12-31 · accession 0001438133-23-000031 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001438133-24-000028 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001438133-25-000036 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0001438133-26-000010 (CashAndCashEquivalentsAtCarryingValue)