Share count
67Mpeak FY2025
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TNDM, Tandem Diabetes Care
Tandem Diabetes Care is a global leader in insulin delivery and diabetes technology, specializing in the design, development, and commercialization of advanced solutions that reduce the burden of diabetes management.
In support of this strategy, our Tandem pump platforms include t:slim X2 and Tandem Mobi (Mobi), both of which feature Control-IQ+ advanced hybrid closed-loop technology.
Diabetes and the Insulin Therapy Management Market Diabetes is a chronic, life-threatening disease for which there is no known cure.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$1.0B
+7.9% YoY · 15% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $1.0B 5-yr avg $841M
Revenue $247M +5.5% vs yr-ago qtr
Operating margin −7.1% yr-ago −51.6%
Net income ($20M) yr-ago ($131M)
Net margin −8.2% yr-ago −55.7%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is Supplies and other (54%) and Pump (46%).
- Situation
- Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Operating margin has run around −18% through the cycle on a 52% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Inventory runs near 14% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −24%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →Revenue spreads across 3 lines, the largest Supplies and other at 54%.
Revenue by product line, FY2025
- Supplies and other54%$551M
- Pump46%$464M
- Tandem Choice Program, Recognized (Deferred)0%$0
By geographyUnited States70%International30%
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $84M | $108M | $184M | $362M | $499M | $703M | $801M | $748M | $940M | $1.0B | $1.0B | RevenueRevenue |
| 28% | 41% | 49% | 54% | 52% | 54% | 52% | 49% | 52% | 54% | 55% | Gross marginGross mgn |
| 98% | 80% | 57% | 46% | 41% | 37% | 42% | 47% | 41% | 44% | 43% | SG&A / revenueSG&A/rev |
| 22% | 19% | 16% | 12% | 13% | 13% | 17% | 23% | 21% | 19% | 18% | R&D / revenueR&D/rev |
| ($78M) | ($63M) | ($45M) | ($17M) | ($8M) | $23M | ($93M) | ($233M) | ($99M) | ($187M) | ($84M) | Operating incomeOp. inc. |
| −92.6% | −58.5% | −24.3% | −4.6% | −1.6% | 3.2% | −11.6% | −31.2% | −10.5% | −18.5% | −8.2% | Operating marginOp. mgn |
| ($83M) | ($73M) | ($123M) | ($25M) | ($34M) | $16M | ($95M) | ($223M) | ($96M) | ($205M) | ($95M) | Net incomeNet inc. |
| Cash flow & returns | |||||||||||
| ($61M) | ($66M) | ($8M) | $42M | $25M | $111M | $50M | ($32M) | $24M | ($10M) | $20M | Operating cash flowOp. cash |
| $5M | $7M | $6M | $6M | $10M | $14M | $14M | $16M | $17M | $18M | $18M | DepreciationDeprec. |
| $5M | ($13M) | $85M | $3M | ($10M) | $21M | $46M | $87M | $2M | $85M | $14M | Working capital & otherWC & other |
| $9M | $6M | $3M | $20M | $27M | $14M | $34M | $27M | $19M | $20M | $23M | CapexCapex |
| 10.6% | 5.3% | 1.6% | 5.4% | 5.5% | 2.0% | 4.3% | 3.6% | 2.0% | 2.0% | 2.3% | Capex / revenueCapex/rev |
| ($67M) | ($72M) | ($11M) | $36M | $14M | $97M | $36M | ($48M) | $5M | ($30M) | $2M | Owner earningsOwner earn. |
| −79.1% | −66.8% | −6.1% | 9.9% | 2.9% | 13.8% | 4.5% | −6.4% | 0.5% | −2.9% | 0.2% | Owner earnings marginOE mgn |
| ($70M) | ($72M) | ($11M) | $22M | ($3M) | $97M | $16M | ($59M) | $5M | ($30M) | ($4M) | Free cash flowFCF |
| −83.2% | −66.8% | −6.1% | 6.2% | −0.5% | 13.8% | 2.0% | −7.8% | 0.5% | −2.9% | −0.4% | Free cash flow marginFCF mgn |
| — | — | — | — | — | — | $0 | $0 | $30M | $0 | — | BuybacksBuybacks |
| -202% | -125% | -39% | -9% | -1% | 3% | -13% | -34% | -14% | -39% | -11% | ROICROIC |
| — | — | -93% | -13% | -9% | 4% | -22% | -71% | -36% | -132% | -71% | Return on equityROE |
| — | — | −93% | −13% | −9% | 4% | −22% | −71% | −36% | −132% | −71% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $54M | $14M | $129M | $176M | $485M | $624M | $617M | $468M | $438M | $293M | $570M | Cash & investmentsCash+inv |
| $11M | $21M | $35M | $47M | $82M | $111M | $115M | $106M | $115M | $165M | $141M | ReceivablesReceiv. |
| $21M | $27M | $20M | $49M | $64M | $69M | $111M | $158M | $150M | $129M | $126M | InventoryInvent. |
| $8M | $5M | $7M | $18M | $18M | $28M | $56M | $50M | $45M | $47M | $60M | Accounts payablePayables |
| $25M | $43M | $48M | $78M | $128M | $151M | $170M | $214M | $219M | $247M | $207M | Operating working capitalOper. WC |
| $92M | $64M | $188M | $276M | $637M | $812M | $850M | $748M | $724M | $618M | $887M | Current assetsCur. assets |
| $31M | $36M | $66M | $99M | $104M | $132M | $165M | $195M | $247M | $243M | $248M | Current liabilitiesCur. liab. |
| 2.9× | 1.8× | 2.8× | 2.8× | 6.1× | 6.2× | 5.1× | 3.8× | 2.9× | 2.5× | 3.6× | Current ratioCurr. ratio |
| $112M | $95M | $206M | $326M | $716M | $905M | $1.1B | $953M | $968M | $881M | $1.2B | Total assetsAssets |
| $81M | $83M | — | $0 | $203M | $281M | $283M | $285M | $349M | $310M | $642M | Total debtDebt |
| $28M | $69M | — | ($176M) | ($282M) | ($342M) | ($334M) | ($183M) | ($89M) | $17M | $72M | Net debt / (cash)Net debt |
| — | — | — | — | — | — | -15.0× | -23.6× | -13.4× | -23.7× | -10.2× | Interest coverageInt. cov. |
| ($6M) | ($29M) | $131M | $195M | $366M | $433M | $440M | $314M | $263M | $155M | $132M | Shareholders’ equityEquity |
| 13.8% | 11.7% | 12.9% | 16.0% | 11.7% | 8.6% | 10.6% | 11.8% | 10.8% | 9.1% | 8.0% | Stock comp / revenueSBC/rev |
| Per share | |||||||||||
| 6.1M | 5.7M | 48.1M | 58.5M | 61.0M | 64.3M | 64.1M | 65.0M | 65.5M | 67.3M | 68.4M | Shares out (diluted)Shares |
| $13.78 | $18.95 | $3.82 | $6.19 | $8.18 | $10.92 | $12.49 | $11.51 | $14.36 | $15.08 | $15.02 | Revenue / shareRev/sh |
| $-13.65 | $-12.86 | $-2.55 | $-0.42 | $-0.56 | $0.24 | $-1.47 | $-3.43 | $-1.47 | $-3.04 | $-1.38 | EPS (diluted)EPS |
| $-10.90 | $-12.66 | $-0.23 | $0.61 | $0.23 | $1.51 | $0.56 | $-0.73 | $0.08 | $-0.44 | $0.03 | Owner earnings / shareOE/sh |
| $-11.47 | $-12.66 | $-0.23 | $0.38 | $-0.04 | $1.51 | $0.26 | $-0.90 | $0.08 | $-0.44 | $-0.05 | Free cash flow / shareFCF/sh |
| $1.46 | $1.01 | $0.06 | $0.33 | $0.45 | $0.22 | $0.53 | $0.41 | $0.29 | $0.30 | $0.34 | Cap. spending / shareCapex/sh |
| $-0.97 | $-5.13 | $2.73 | $3.33 | $6.01 | $6.73 | $6.86 | $4.83 | $4.02 | $2.31 | $1.94 | Book value / shareBVPS |
Share counts before 2017 are restated ×2 for a stock split, so per-share figures sit on one basis.
The diluted share count moved ×8.48 into 2018 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +1.0%/yr | +13.0%/yr |
| Capital spending / share | −16.2%/yr | −8.0%/yr |
| Book value / share | — | −17.4%/yr |
The year, in the company's words
the filing →Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.
- International+15.1%
“International sales by product were as follows (in thousands): Year Ended December 31, 2025 2024 Sales: Pump 110,260 105,544 Supplies and other 197,540 161,974 Total international sales $ 307,800 $ 267,518 For the year ended December 31, 2025, international sales increased due to increased volumes, improved average selling prices and favorable changes in foreign currency exchange rates.”
✓ direction matches the filed record - Pump+6.9%
“Pump sales increased slightly due to an increase in pump shipments to more than 40,000 for the year ended December 31, 2025 compared to nearly 40,000 for the year ended December 31, 2024.”
✓ direction matches the filed record
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.
ROIC
−39%low FY2016
Gross margin
54%low FY2016
Net debt ÷ owner earnings
-17.9×peak FY2021
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
($30M)owner earningsvs.($205M)net incomelow FY2017
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2019FY2024
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business turned a $205M loss into ($30M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | ($205M) | ($96M) | ($223M) | ($95M) | $16M |
| Depreciation & amortizationnon-cash charge added back | +$18M | +$17M | +$16M | +$14M | +$14M |
| Stock-based compensationreal costnon-cash, but a real cost | +$92M | +$101M | +$88M | +$85M | +$61M |
| Working capital & othertiming of cash in and out, other non-cash items | +$85M | +$2M | +$87M | +$46M | +$21M |
| Cash from operations | ($10M) | $24M | ($32M) | $50M | $111M |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$20M | −$19M | −$16M | −$14M | −$14M |
| Owner earnings | ($30M) | $5M | ($48M) | $36M | $97M |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | — | −$11M | −$20M | — |
| Free cash flow | ($30M) | $5M | ($59M) | $16M | $97M |
| Owner-earnings marginowner earnings ÷ revenue | -3% | 1% | -6% | 5% | 14% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $92M), owner earnings is nearer ($122M).
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? -23.7×Does not cover its interestOperating income ($187M) ÷ interest expense $8M
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net debt against an operating lossCash $91M + ST investments $202M − debt $351M
What this means
Netting $293M of cash and short-term investments against $351M of debt leaves $58M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 60 + DIO 100 − DPO 37 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Below average through the cycle10-yr median, range -202%–3%; -36% latest = NOPAT ($148M) ÷ invested capital $415MIndustry peers: median -3%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran -36% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Consumes cash through the cycle10-yr median margin, range -79%–14%; latest ($30M) = operating cash ($10M) − maintenance capex $20MIndustry peers: median 1%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -3% of revenue this year, a -3% median across 10 years. Treating stock comp as the real expense it is (less $92M of SBC) leaves ($122M).
- Are earnings backed by cash? ($10M)Loss, and burning cashNet income ($205M) · cash from operations ($10M)
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.
How is the cash used?
- No surplus to allocate
What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
- Investing or harvesting? 1.13×MaintainingCapex $20M ÷ depreciation $18M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size NearRevenue ≥ $2B · $1.0B
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 2.55×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $351M vs $375M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (10-yr record) · 9 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-2.55/share (latest year $-2.99), the averaged base the calculator's gate runs on, and book value is $2.26/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2016–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 1 of 10
What this means
Lost money in 9 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 0 of 9 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin −58% → −20% (3-yr avg ends)
What this means
Through the cycle the operating margin widened — about −58% early to −20% lately, median −18% — pricing power intact or improving.
- Reinvestment, incremental ROIC −21%
What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
- Worst year 2016 · −92.6% op. margin
What this means
Operations went underwater in 2016, understand why before trusting the good years.
- How management talks about it Promotional
What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“If we are unable to use AI, it could make our business less efficient and result in competitive disadvantages.”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$887M
- Cash & short-term investments$570M
- Receivables$141M
- Inventory$126M
- Other current assets$50M
Current liabilities$248M
- Debt due within a year$41M
- Accounts payable$60M
- Other current liabilities$147M
Current ratio3.58×all current assets ÷ what's due · Graham looked for 2×
Quick ratio3.07×stricter: inventory excluded
Cash ratio2.30×strictest: cash alone against what's due
Working capital$639Mthe cushion left after near-term bills
Debt due this year vs. cash$41M due · $570M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Revenue, latest quarter vs. a year ago+5.5%the freshest read on whether the business is still growing
Current ratio, recent quarters3.0× → 3.6×
Deeper floors
Tangible book value$121Mequity stripped of goodwill & intangibles
Net current asset value($134M)Graham's net-net: current assets less all liabilities
Debt incl. operating leases$775M$133M of it operating leases
Deferred revenue$17Mcustomer cash collected before delivery; operating float
From the company's latest filing.
How the cash was used, 2016–2025
Over the record, the business generated $75M of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.
- Reinvested$179M · 237%
- Buybacks$30M · 40%
- Returned to owners$30M
$0 as dividends and $30M as buybacks.
- Source of funding−$133M
Reinvestment and shareholder returns ran $133M beyond the operating cash the business generated, so the gap was financed off the balance sheet: debt rose from $81M to $642M.
- Average price paid for buybacks—
Buybacks ran $30M over the span, but the filings don't tag the share count needed to deduce the average price paid.
- Net change in share count1018.7%
The diluted count rose from 6M to 68M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2021 | John F. Sheridan | $5.7M | $16.4M | $97M |
| 2022 | John F. Sheridan | $6.4M | −$8.3M | $36M |
| 2023 | John F. Sheridan | $4.7M | $1.5M | ($48M) |
| 2024 | John F. Sheridan | $8.5M | $6.8M | $5M |
| 2025 | John F. Sheridan | $6.9M | $2.9M | ($30M) |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership2.1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$92M
The slice of the business handed to employees in shares this year, 9% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Inverting the record
Invert: instead of why Tandem Diabetes Care is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.
2 of the 4 tests turned up something to look into; the other 2 came back clean.
- Look hereDid the share count rise anyway?1018.7%
Diluted shares grew 1018.7% over 2016–2025, even as the company spent $30M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
- Look hereDid debt outgrow the business?$81M → $642M
Debt rose from $81M to $642M while owner earnings went from about ($50M) to ($24M): the borrowing grew and the earnings that would carry it are not there now. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.
And these came back clean
- Is it less profitable than it was?
- Did receivables and inventory outpace sales?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Medical Devices & Equipment
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| IARTIntegra Lifesciences Holdings Corp | $1.6B | 62% | 7.4% | 4% | 8% |
| PENPenumbra | $1.4B | 65% | 0.5% | 0% | 3% |
| HAEHaemonetics | $1.3B | 50% | 10.4% | 7% | 11% |
| TNDMTandem Diabetes Care | $1.0B | 52% | -15.0% | -24% | -1% |
| INSPInspire Medical Systems | $912M | 84% | -28.7% | -19% | -23% |
| OFIXOrthofix Medical Inc. Common Stock (DE) | $822M | 75% | -2.3% | -3% | 1% |
| ATECAlphatec Holdings | $764M | 68% | -30.2% | -47% | -31% |
| NVCRNovoCure | $655M | 75% | -19.4% | -23% | -5% |
| Group median | — | 66% | -8.7% | -11% | 0% |
The price
What a price has to assume.
What the price implies
reverse-DCFTandem Diabetes Care is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Revenue, delivered13%/yr’20→’25
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−0%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Tandem Diabetes Care (TNDM), the owner's record," https://ownerscorecard.com/c/TNDM, data as of 2026-07-09.
Manual order: ← TNC its page in the Manual TNET →
Industry order: ← TMDX the Medical Devices & Equipment chapter UFPT →