Tandem Diabetes Return On Equity vs. Current Valuation

TNDM Stock  USD 31.22  1.18  3.93%   
Based on Tandem Diabetes' profitability indicators, Tandem Diabetes Care may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Tandem Diabetes' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.71)
Current Value
(0.67)
Quarterly Volatility
3.79158058
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Tandem Diabetes' Days Sales Outstanding is very stable compared to the past year. As of the 28th of November 2024, Days Of Sales Outstanding is likely to grow to 92.58, while Price To Sales Ratio is likely to drop 2.44. At this time, Tandem Diabetes' Net Income Per E B T is very stable compared to the past year.
For Tandem Diabetes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tandem Diabetes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tandem Diabetes Care utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tandem Diabetes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tandem Diabetes Care over time as well as its relative position and ranking within its peers.
  

Tandem Diabetes' Revenue Breakdown by Earning Segment

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Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tandem Diabetes. If investors know Tandem will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tandem Diabetes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.37)
Earnings Share
(2.02)
Revenue Per Share
13.082
Quarterly Revenue Growth
0.314
Return On Assets
(0.1)
The market value of Tandem Diabetes Care is measured differently than its book value, which is the value of Tandem that is recorded on the company's balance sheet. Investors also form their own opinion of Tandem Diabetes' value that differs from its market value or its book value, called intrinsic value, which is Tandem Diabetes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tandem Diabetes' market value can be influenced by many factors that don't directly affect Tandem Diabetes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tandem Diabetes' value and its price as these two are different measures arrived at by different means. Investors typically determine if Tandem Diabetes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tandem Diabetes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Tandem Diabetes Care Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tandem Diabetes's current stock value. Our valuation model uses many indicators to compare Tandem Diabetes value to that of its competitors to determine the firm's financial worth.
Tandem Diabetes Care is currently regarded as top stock in return on equity category among its peers. It also is currently regarded number one company in current valuation category among its peers . At this time, Tandem Diabetes' Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Tandem Diabetes by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Tandem Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Tandem Diabetes

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.46
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Tandem Diabetes

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.98 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Tandem Current Valuation vs Competition

Tandem Diabetes Care is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is at this time estimated at about 2.06 Billion. Tandem Diabetes totals roughly 1.98 Billion in current valuation claiming about 96% of equities under Health Care industry.

Tandem Diabetes Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tandem Diabetes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tandem Diabetes will eventually generate negative long term returns. The profitability progress is the general direction of Tandem Diabetes' change in net profit over the period of time. It can combine multiple indicators of Tandem Diabetes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.4 M1.4 M
Operating Income-233.2 M-221.6 M
Income Before Tax-220.3 M-209.2 M
Total Other Income Expense Net13 M13.6 M
Net Loss-222.6 M-211.5 M
Income Tax Expense2.4 M2.5 M
Net Loss-222.6 M-211.5 M
Non Operating Income Net Other-3.6 K-3.8 K
Net Loss-108.8 M-114.2 M
Interest Income22.9 M24 M
Net Interest Income13 M13.6 M
Change To Netincome140 M147 M
Net Loss(3.43)(3.60)
Income Quality 0.14  0.14 
Net Income Per E B T 1.01  1.10 

Tandem Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Tandem Diabetes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Tandem Diabetes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Tandem Diabetes' important profitability drivers and their relationship over time.

Use Tandem Diabetes in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Tandem Diabetes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tandem Diabetes will appreciate offsetting losses from the drop in the long position's value.

Tandem Diabetes Pair Trading

Tandem Diabetes Care Pair Trading Analysis

The ability to find closely correlated positions to Tandem Diabetes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tandem Diabetes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Tandem Diabetes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Tandem Diabetes Care to buy it.
The correlation of Tandem Diabetes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Tandem Diabetes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tandem Diabetes Care moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Tandem Diabetes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Tandem Diabetes position

In addition to having Tandem Diabetes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Emerging Markets ETFs Thematic Idea Now

Emerging Markets ETFs
Emerging Markets ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Emerging Markets ETFs theme has 29 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets ETFs Theme or any other thematic opportunities.
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When determining whether Tandem Diabetes Care is a strong investment it is important to analyze Tandem Diabetes' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Tandem Diabetes' future performance. For an informed investment choice regarding Tandem Stock, refer to the following important reports:
Check out World Market Map.
You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
To fully project Tandem Diabetes' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tandem Diabetes Care at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Tandem Diabetes' income statement, its balance sheet, and the statement of cash flows.
Potential Tandem Diabetes investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Tandem Diabetes investors may work on each financial statement separately, they are all related. The changes in Tandem Diabetes's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tandem Diabetes's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.