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In the world of growth stocks, NASDAQ:DXCM shines as a value proposition.

By Mill Chart

Last update: Nov 9, 2023

DEXCOM INC (NASDAQ:DXCM) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:DXCM is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Deciphering NASDAQ:DXCM's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:DXCM has achieved a 9 out of 10:

  • DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.86%, which is quite impressive.
  • DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.89% yearly.
  • Looking at the last year, DXCM shows a very strong growth in Revenue. The Revenue has grown by 21.85%.
  • Measured over the past years, DXCM shows a very strong growth in Revenue. The Revenue has been growing by 32.28% on average per year.
  • Based on estimates for the next years, DXCM will show a very strong growth in Earnings Per Share. The EPS will grow by 28.34% on average per year.
  • DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.22% yearly.

A Closer Look at Valuation for NASDAQ:DXCM

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:DXCM has achieved a 5 out of 10:

  • DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 70.65% of the companies in the same industry.
  • Based on the Price/Forward Earnings ratio, DXCM is valued a bit cheaper than the industry average as 72.14% of the companies are valued more expensively.
  • Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 69.65% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DXCM is valued a bit cheaper than the industry average as 78.61% of the companies are valued more expensively.
  • DXCM has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as DXCM's earnings are expected to grow with 33.47% in the coming years.

Health Examination for NASDAQ:DXCM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DXCM has achieved a 6 out of 10:

  • DXCM has an Altman-Z score of 6.59. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
  • DXCM's Altman-Z score of 6.59 is amongst the best of the industry. DXCM outperforms 86.57% of its industry peers.
  • With an excellent Debt to FCF ratio value of 5.23, DXCM belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.
  • A Current Ratio of 2.80 indicates that DXCM has no problem at all paying its short term obligations.
  • DXCM has a Quick Ratio of 2.50. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:DXCM's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:DXCM, the assigned 8 is noteworthy for profitability:

  • Looking at the Return On Assets, with a value of 5.72%, DXCM belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
  • DXCM has a Return On Equity of 16.62%. This is amongst the best in the industry. DXCM outperforms 92.54% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.08%, DXCM belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
  • The 3 year average ROIC (7.78%) for DXCM is below the current ROIC(9.08%), indicating increased profibility in the last year.
  • The Profit Margin of DXCM (11.08%) is better than 88.56% of its industry peers.
  • In the last couple of years the Profit Margin of DXCM has grown nicely.
  • The Operating Margin of DXCM (15.28%) is better than 87.56% of its industry peers.
  • In the last couple of years the Operating Margin of DXCM has grown nicely.
  • The Gross Margin of DXCM (64.28%) is better than 68.16% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of DXCM

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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DEXCOM INC

NASDAQ:DXCM (2/23/2024, 7:00:01 PM)

After market: 116.26 0 (0%)

116.26

-1.24 (-1.06%)

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