DEXCOM INC (DC4.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DC4 - US2521311074 - Common Stock
60.65 EUR
-0.89 (-1.45%)
Taking everything into account, DC4 scores 6 out of 10 in our fundamental rating. DC4 was compared to 63 industry peers in the Health Care Equipment & Supplies industry. While DC4 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DC4 is growing strongly while it is still valued neutral. This is a good combination! This makes DC4 very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year DC4 was profitable.
- DC4 had a positive operating cash flow in the past year.
- Each year in the past 5 years DC4 has been profitable.
- In the past 5 years DC4 always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DC4 (9.61%) is better than 87.30% of its industry peers.
- Looking at the Return On Equity, with a value of 26.44%, DC4 belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- DC4 has a Return On Invested Capital of 15.72%. This is amongst the best in the industry. DC4 outperforms 93.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DC4 is in line with the industry average of 9.95%.
- The 3 year average ROIC (11.25%) for DC4 is below the current ROIC(15.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.61% | ||
| ROE | 26.44% | ||
| ROIC | 15.72% |
ROA(3y)7.95%
ROA(5y)8.21%
ROE(3y)23.2%
ROE(5y)22.06%
ROIC(3y)11.25%
ROIC(5y)9.23%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.96%, DC4 belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- In the last couple of years the Profit Margin of DC4 has grown nicely.
- The Operating Margin of DC4 (18.41%) is better than 77.78% of its industry peers.
- In the last couple of years the Operating Margin of DC4 has grown nicely.
- DC4 has a Gross Margin (60.20%) which is in line with its industry peers.
- DC4's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.41% | ||
| PM (TTM) | 15.96% | ||
| GM | 60.2% |
OM growth 3Y10.52%
OM growth 5Y8.87%
PM growth 3Y17.27%
PM growth 5Y15.84%
GM growth 3Y-3.98%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DC4 is still creating some value.
- Compared to 1 year ago, DC4 has more shares outstanding
- Compared to 5 years ago, DC4 has more shares outstanding
- DC4 has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.24 indicates that DC4 is not in any danger for bankruptcy at the moment.
- The Altman-Z score of DC4 (5.24) is better than 87.30% of its industry peers.
- DC4 has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as DC4 would need 2.36 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.36, DC4 is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that DC4 is not too dependend on debt financing.
- DC4 has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: DC4 outperforms 50.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.65
WACC9.51%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that DC4 should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.56, DC4 is in line with its industry, outperforming 49.21% of the companies in the same industry.
- DC4 has a Quick Ratio of 1.38. This is a normal value and indicates that DC4 is financially healthy and should not expect problems in meeting its short term obligations.
- DC4 has a Quick ratio of 1.38. This is in the better half of the industry: DC4 outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.41% over the past year.
- Measured over the past years, DC4 shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.25% on average per year.
- The Revenue has grown by 14.21% in the past year. This is quite good.
- DC4 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.27% yearly.
EPS 1Y (TTM)9.41%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%35.56%
Revenue 1Y (TTM)14.21%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%21.64%
3.2 Future
- DC4 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.05% yearly.
- The Revenue is expected to grow by 13.28% on average over the next years. This is quite good.
EPS Next Y27.38%
EPS Next 2Y23.51%
EPS Next 3Y22.59%
EPS Next 5Y22.05%
Revenue Next Year15.45%
Revenue Next 2Y14.08%
Revenue Next 3Y13.66%
Revenue Next 5Y13.28%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- DC4 is valuated quite expensively with a Price/Earnings ratio of 38.63.
- DC4's Price/Earnings is on the same level as the industry average.
- DC4 is valuated rather expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 28.52, which means the current valuation is very expensive for DC4.
- The rest of the industry has a similar Price/Forward Earnings ratio as DC4.
- DC4's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.63 | ||
| Fwd PE | 28.52 |
4.2 Price Multiples
- DC4's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, DC4 is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.37 | ||
| EV/EBITDA | 24.27 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of DC4 may justify a higher PE ratio.
- DC4's earnings are expected to grow with 22.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)1.32
EPS Next 2Y23.51%
EPS Next 3Y22.59%
5. Dividend
5.1 Amount
- No dividends for DC4!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DEXCOM INC / DC4.DE FAQ
What is the ChartMill fundamental rating of DEXCOM INC (DC4.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DC4.DE.
What is the valuation status for DC4 stock?
ChartMill assigns a valuation rating of 4 / 10 to DEXCOM INC (DC4.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for DEXCOM INC?
DEXCOM INC (DC4.DE) has a profitability rating of 8 / 10.
How financially healthy is DEXCOM INC?
The financial health rating of DEXCOM INC (DC4.DE) is 6 / 10.
Can you provide the expected EPS growth for DC4 stock?
The Earnings per Share (EPS) of DEXCOM INC (DC4.DE) is expected to grow by 27.38% in the next year.