DEXCOM INC (DXCM)

US2521311074 - Common Stock

139.48  -0.45 (-0.32%)

Premarket: 140.14 +0.66 (+0.47%)

Fundamental Rating

7

Overall DXCM gets a fundamental rating of 7 out of 10. We evaluated DXCM against 196 industry peers in the Health Care Equipment & Supplies industry. While DXCM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DXCM is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make DXCM a good candidate for growth investing.



8

1. Profitability

1.1 Basic Checks

In the past year DXCM was profitable.
DXCM had a positive operating cash flow in the past year.
Each year in the past 5 years DXCM has been profitable.
In the past 5 years DXCM always reported a positive cash flow from operatings.

1.2 Ratios

DXCM has a better Return On Assets (8.64%) than 90.82% of its industry peers.
Looking at the Return On Equity, with a value of 26.18%, DXCM belongs to the top of the industry, outperforming 97.45% of the companies in the same industry.
DXCM has a Return On Invested Capital of 10.67%. This is amongst the best in the industry. DXCM outperforms 92.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DXCM is in line with the industry average of 8.51%.
The last Return On Invested Capital (10.67%) for DXCM is above the 3 year average (8.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.64%
ROE 26.18%
ROIC 10.67%
ROA(3y)6.46%
ROA(5y)7.28%
ROE(3y)17.6%
ROE(5y)18.87%
ROIC(3y)8.57%
ROIC(5y)7.84%

1.3 Margins

DXCM has a better Profit Margin (14.95%) than 92.35% of its industry peers.
In the last couple of years the Profit Margin of DXCM has declined.
DXCM has a Operating Margin of 16.96%. This is amongst the best in the industry. DXCM outperforms 89.80% of its industry peers.
In the last couple of years the Operating Margin of DXCM has remained more or less at the same level.
DXCM's Gross Margin of 63.65% is fine compared to the rest of the industry. DXCM outperforms 64.80% of its industry peers.
DXCM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.96%
PM (TTM) 14.95%
GM 63.65%
OM growth 3Y0.29%
OM growth 5YN/A
PM growth 3Y-19.38%
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y-0.22%

6

2. Health

2.1 Basic Checks

DXCM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DXCM has less shares outstanding than it did 1 year ago.
DXCM has more shares outstanding than it did 5 years ago.
DXCM has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 9.37 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM has a better Altman-Z score (9.37) than 87.24% of its industry peers.
DXCM has a debt to FCF ratio of 4.87. This is a neutral value as DXCM would need 4.87 years to pay back of all of its debts.
DXCM has a Debt to FCF ratio of 4.87. This is amongst the best in the industry. DXCM outperforms 82.65% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that DXCM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.21, DXCM is doing worse than 83.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 4.87
Altman-Z 9.37
ROIC/WACC1.15
WACC9.25%

2.3 Liquidity

DXCM has a Current Ratio of 2.84. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
DXCM has a Current ratio (2.84) which is comparable to the rest of the industry.
A Quick Ratio of 2.48 indicates that DXCM has no problem at all paying its short term obligations.
DXCM's Quick ratio of 2.48 is in line compared to the rest of the industry. DXCM outperforms 49.49% of its industry peers.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 2.48

9

3. Growth

3.1 Past

DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.56%, which is quite impressive.
Measured over the past years, DXCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.54% on average per year.
Looking at the last year, DXCM shows a very strong growth in Revenue. The Revenue has grown by 24.49%.
DXCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.56% yearly.
EPS 1Y (TTM)73.56%
EPS 3Y25.17%
EPS 5Y83.54%
EPS growth Q2Q47.06%
Revenue 1Y (TTM)24.49%
Revenue growth 3Y23.42%
Revenue growth 5Y28.56%
Revenue growth Q2Q26.9%

3.2 Future

Based on estimates for the next years, DXCM will show a very strong growth in Earnings Per Share. The EPS will grow by 25.18% on average per year.
DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.84% yearly.
EPS Next Y18.01%
EPS Next 2Y22.69%
EPS Next 3Y23.33%
EPS Next 5Y25.18%
Revenue Next Year20.05%
Revenue Next 2Y19.52%
Revenue Next 3Y19%
Revenue Next 5Y17.84%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 92.37 indicates a quite expensive valuation of DXCM.
Based on the Price/Earnings ratio, DXCM is valued a bit cheaper than 68.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, DXCM is valued quite expensively.
A Price/Forward Earnings ratio of 78.27 indicates a quite expensive valuation of DXCM.
DXCM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 69.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DXCM to the average of the S&P500 Index (22.74), we can say DXCM is valued expensively.
Industry RankSector Rank
PE 92.37
Fwd PE 78.27

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 67.86% of the companies in the same industry.
DXCM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 72.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF 105.04
EV/EBITDA 64.2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DXCM does not grow enough to justify the current Price/Earnings ratio.
DXCM has an outstanding profitability rating, which may justify a higher PE ratio.
DXCM's earnings are expected to grow with 23.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.13
PEG (5Y)1.11
EPS Next 2Y22.69%
EPS Next 3Y23.33%

0

5. Dividend

5.1 Amount

No dividends for DXCM!.
Industry RankSector Rank
Dividend Yield N/A

DEXCOM INC

NASDAQ:DXCM (3/27/2024, 8:09:29 PM)

Premarket: 140.14 +0.66 (+0.47%)

139.48

-0.45 (-0.32%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap53.77B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 92.37
Fwd PE 78.27
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.13
PEG (5Y)1.11
Profitability
Industry RankSector Rank
ROA 8.64%
ROE 26.18%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.96%
PM (TTM) 14.95%
GM 63.65%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.84
Quick Ratio 2.48
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)73.56%
EPS 3Y25.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.49%
Revenue growth 3Y23.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y