DEXCOM INC (DC4.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DC4 - US2521311074 - Common Stock
61.54 EUR
+0.04 (+0.07%)
We assign a fundamental rating of 6 out of 10 to DC4. DC4 was compared to 63 industry peers in the Health Care Equipment & Supplies industry. DC4 scores excellent on profitability, but there are some minor concerns on its financial health. DC4 is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make DC4 suitable for growth investing!
1. Profitability
1.1 Basic Checks
- DC4 had positive earnings in the past year.
- DC4 had a positive operating cash flow in the past year.
- Each year in the past 5 years DC4 has been profitable.
- Each year in the past 5 years DC4 had a positive operating cash flow.
1.2 Ratios
- DC4 has a better Return On Assets (9.61%) than 87.30% of its industry peers.
- DC4's Return On Equity of 26.44% is amongst the best of the industry. DC4 outperforms 95.24% of its industry peers.
- With an excellent Return On Invested Capital value of 15.72%, DC4 belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
- 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 last Return On Invested Capital (15.72%) for DC4 is above the 3 year average (11.25%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 15.96%, DC4 belongs to the best 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.
- DC4 has a Operating Margin of 18.41%. This is in the better half of the industry: DC4 outperforms 77.78% of its industry peers.
- In the last couple of years the Operating Margin of DC4 has grown nicely.
- With a Gross Margin value of 60.20%, DC4 perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
- 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.
- DC4 has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for DC4 has been increased compared to 5 years ago.
- The debt/assets ratio for DC4 has been reduced compared to a year ago.
2.2 Solvency
- DC4 has an Altman-Z score of 5.24. This indicates that DC4 is financially healthy and has little risk of bankruptcy at the moment.
- DC4's Altman-Z score of 5.24 is amongst the best of the industry. DC4 outperforms 87.30% of its industry peers.
- The Debt to FCF ratio of DC4 is 2.36, which is a good value as it means it would take DC4, 2.36 years of fcf income to pay off all of its debts.
- DC4 has a Debt to FCF ratio of 2.36. This is in the better half of the industry: DC4 outperforms 74.60% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that DC4 is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.47, DC4 perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.65
WACC9.52%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that DC4 should not have too much problems paying its short term obligations.
- DC4 has a Current ratio (1.56) which is in line with its industry peers.
- 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's Quick ratio of 1.38 is fine compared to the rest 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
- DC4 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, which is quite good.
- DC4 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.25% yearly.
- The Revenue has grown by 14.21% in the past year. This is quite good.
- Measured over the past years, DC4 shows a very strong growth in Revenue. The Revenue has been growing by 22.27% on average per year.
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
- Based on estimates for the next years, DC4 will show a very strong growth in Earnings Per Share. The EPS will grow by 22.05% on average per year.
- 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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- DC4 is valuated quite expensively with a Price/Earnings ratio of 39.20.
- 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.
- A Price/Forward Earnings ratio of 28.94 indicates a quite expensive valuation of DC4.
- The rest of the industry has a similar Price/Forward Earnings ratio as DC4.
- DC4 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.2 | ||
| Fwd PE | 28.94 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DC4.
- Based on the Price/Free Cash Flow ratio, DC4 is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.75 | ||
| EV/EBITDA | 24.27 |
4.3 Compensation for Growth
- DC4's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DC4 has an outstanding profitability rating, which 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)1.43
PEG (5Y)1.34
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.