DEXCOM INC (DXCM) Stock Fundamental Analysis
USA - NASDAQ:DXCM - US2521311074 - Common Stock
69.46 USD
+1.03 (+1.51%)
We assign a fundamental rating of 6 out of 10 to DXCM. DXCM was compared to 190 industry peers in the Health Care Equipment & Supplies industry. DXCM scores excellent on profitability, but there are some minor concerns on its financial health. DXCM is growing strongly while it is still valued neutral. This is a good combination! These ratings would make DXCM suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DXCM was profitable.
In the past year DXCM had a positive cash flow from operations.
DXCM had positive earnings in each of the past 5 years.
In the past 5 years DXCM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DXCM (7.80%) is better than 91.05% of its industry peers.
Looking at the Return On Equity, with a value of 22.21%, DXCM belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
DXCM's Return On Invested Capital of 14.52% is amongst the best of the industry. DXCM outperforms 94.21% of its industry peers.
DXCM had an Average Return On Invested Capital over the past 3 years of 11.25%. This is above the industry average of 8.88%.
The 3 year average ROIC (11.25%) for DXCM is below the current ROIC(14.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 22.21% | ||
| ROIC | 14.52% |
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 13.29%, DXCM belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
DXCM's Profit Margin has improved in the last couple of years.
DXCM has a better Operating Margin (17.22%) than 87.37% of its industry peers.
DXCM's Operating Margin has improved in the last couple of years.
DXCM has a Gross Margin (60.01%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DXCM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.22% | ||
| PM (TTM) | 13.29% | ||
| GM | 60.01% |
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
DXCM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DXCM has been increased compared to 1 year ago.
The number of shares outstanding for DXCM has been increased compared to 5 years ago.
DXCM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.95 indicates that DXCM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.95, DXCM is doing good in the industry, outperforming 77.37% of the companies in the same industry.
DXCM has a debt to FCF ratio of 4.38. This is a neutral value as DXCM would need 4.38 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.38, DXCM belongs to the top of the industry, outperforming 80.53% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that DXCM is somewhat dependend on debt financing.
DXCM's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. DXCM outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.83
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.52 indicates that DXCM should not have too much problems paying its short term obligations.
DXCM's Current ratio of 1.52 is on the low side compared to the rest of the industry. DXCM is outperformed by 73.68% of its industry peers.
A Quick Ratio of 1.35 indicates that DXCM should not have too much problems paying its short term obligations.
DXCM has a Quick ratio of 1.35. This is in the lower half of the industry: DXCM underperforms 64.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for DXCM have decreased by -2.86% in the last year.
The Earnings Per Share has been growing by 29.25% on average over the past years. This is a very strong growth
The Revenue has grown by 9.30% in the past year. This is quite good.
DXCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.27% yearly.
EPS 1Y (TTM)-2.86%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%11.63%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%15.21%
3.2 Future
The Earnings Per Share is expected to grow by 22.60% on average over the next years. This is a very strong growth
Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 13.90% on average per year.
EPS Next Y26.84%
EPS Next 2Y26.2%
EPS Next 3Y24.65%
EPS Next 5Y22.6%
Revenue Next Year14.99%
Revenue Next 2Y15.17%
Revenue Next 3Y14.81%
Revenue Next 5Y13.9%
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
A Price/Earnings ratio of 40.86 indicates a quite expensive valuation of DXCM.
Based on the Price/Earnings ratio, DXCM is valued a bit cheaper than the industry average as 69.47% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DXCM to the average of the S&P500 Index (27.69), we can say DXCM is valued slightly more expensively.
A Price/Forward Earnings ratio of 26.43 indicates a quite expensive valuation of DXCM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 74.21% of the companies listed in the same industry.
DXCM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.86 | ||
| Fwd PE | 26.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than the industry average as 72.63% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 76.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.72 | ||
| EV/EBITDA | 25.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 24.65% in the coming years.
PEG (NY)1.52
PEG (5Y)1.4
EPS Next 2Y26.2%
EPS Next 3Y24.65%
5. Dividend
5.1 Amount
No dividends for DXCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DXCM (10/21/2025, 3:27:10 PM)
69.46
+1.03 (+1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.73%
Inst Owner Change-0.28%
Ins Owners0.19%
Ins Owner Change2.47%
Market Cap27.24B
Analysts84.57
Price Target104.5 (50.45%)
Short Float %3.37%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.34%
Min EPS beat(2)-4.09%
Max EPS beat(2)6.77%
EPS beat(4)2
Avg EPS beat(4)-1.87%
Min EPS beat(4)-11.66%
Max EPS beat(4)6.77%
EPS beat(8)6
Avg EPS beat(8)9.43%
EPS beat(12)10
Avg EPS beat(12)14.38%
EPS beat(16)11
Avg EPS beat(16)8.49%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)0.88%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)-0.39%
Revenue beat(16)6
Avg Revenue beat(16)-0.42%
PT rev (1m)-0.85%
PT rev (3m)2.36%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.86 | ||
| Fwd PE | 26.43 | ||
| P/S | 6.33 | ||
| P/FCF | 47.72 | ||
| P/OCF | 27.58 | ||
| P/B | 10.59 | ||
| P/tB | 11.06 | ||
| EV/EBITDA | 25.22 |
EPS(TTM)1.7
EY2.45%
EPS(NY)2.63
Fwd EY3.78%
FCF(TTM)1.46
FCFY2.1%
OCF(TTM)2.52
OCFY3.63%
SpS10.97
BVpS6.56
TBVpS6.28
PEG (NY)1.52
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 22.21% | ||
| ROCE | 18.43% | ||
| ROIC | 14.52% | ||
| ROICexc | 53.56% | ||
| ROICexgc | 59.66% | ||
| OM | 17.22% | ||
| PM (TTM) | 13.29% | ||
| GM | 60.01% | ||
| FCFM | 13.27% |
ROA(3y)7.95%
ROA(5y)8.21%
ROE(3y)23.2%
ROE(5y)22.06%
ROIC(3y)11.25%
ROIC(5y)9.23%
ROICexc(3y)35.45%
ROICexc(5y)29.66%
ROICexgc(3y)40.94%
ROICexgc(5y)33.19%
ROCE(3y)14.28%
ROCE(5y)11.73%
ROICexcg growth 3Y55.18%
ROICexcg growth 5Y18.96%
ROICexc growth 3Y50.14%
ROICexc growth 5Y16.58%
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%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 176.58% | ||
| Cap/Sales | 9.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.12% | ||
| Profit Quality | 99.88% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 4.95 |
F-Score6
WACC7.95%
ROIC/WACC1.83
Cap/Depr(3y)175.34%
Cap/Depr(5y)240.83%
Cap/Sales(3y)9.32%
Cap/Sales(5y)10.84%
Profit Quality(3y)97.76%
Profit Quality(5y)73.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.86%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%11.63%
EPS Next Y26.84%
EPS Next 2Y26.2%
EPS Next 3Y24.65%
EPS Next 5Y22.6%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%15.21%
Revenue Next Year14.99%
Revenue Next 2Y15.17%
Revenue Next 3Y14.81%
Revenue Next 5Y13.9%
EBIT growth 1Y6.1%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year77.25%
EBIT Next 3Y38.83%
EBIT Next 5Y31.4%
FCF growth 1Y22.49%
FCF growth 3Y127.88%
FCF growth 5Y36.21%
OCF growth 1Y28.04%
OCF growth 3Y30.77%
OCF growth 5Y25.76%