DEXCOM INC (DXCM) Stock Fundamental Analysis
USA - NASDAQ:DXCM - US2521311074 - Common Stock
70.58 USD
+0.83 (+1.19%)
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. 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.
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
With an excellent Return On Assets value of 7.80%, DXCM belongs to the best of the industry, outperforming 91.05% of the companies in the same industry.
DXCM's Return On Equity of 22.21% is amongst the best of the industry. DXCM outperforms 94.21% of its industry peers.
DXCM's Return On Invested Capital of 14.52% is amongst the best of the industry. DXCM outperforms 94.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DXCM 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
The Profit Margin of DXCM (13.29%) is better than 89.47% of its industry peers.
DXCM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.22%, DXCM belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
DXCM's Operating Margin has improved in the last couple of years.
The Gross Margin of DXCM (60.01%) is comparable to the rest of the industry.
DXCM's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, DXCM has more shares outstanding
The number of shares outstanding for DXCM has been increased compared to 5 years ago.
The debt/assets ratio for DXCM has been reduced compared to a year ago.
2.2 Solvency
DXCM has an Altman-Z score of 5.01. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
DXCM has a Altman-Z score of 5.01. This is in the better half of the industry: DXCM outperforms 77.37% of its industry peers.
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.
DXCM has a Debt to FCF ratio of 4.38. This is amongst the best in the industry. DXCM outperforms 80.53% of its industry peers.
DXCM has a Debt/Equity ratio of 0.50. This is a neutral value indicating 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 | 5.01 |
ROIC/WACC1.83
WACC7.95%
2.3 Liquidity
DXCM has a Current Ratio of 1.52. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.52, DXCM is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
DXCM has a Quick Ratio of 1.35. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DXCM (1.35) is worse than 64.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
DXCM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.86%.
DXCM 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 9.30% in the past year. This is quite good.
Measured over the past years, DXCM shows a very strong growth in Revenue. The Revenue has been growing by 22.27% on average per year.
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
DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.60% yearly.
The Revenue is expected to grow by 13.90% on average over the next years. This is quite good.
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
DXCM is valuated quite expensively with a Price/Earnings ratio of 41.52.
69.47% of the companies in the same industry are more expensive than DXCM, based on the Price/Earnings ratio.
DXCM is valuated rather expensively when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.86 indicates a quite expensive valuation of DXCM.
Based on the Price/Forward Earnings ratio, DXCM is valued a bit cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, DXCM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.52 | ||
| Fwd PE | 26.86 |
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.
76.84% of the companies in the same industry are more expensive than DXCM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.49 | ||
| EV/EBITDA | 25.75 |
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)1.55
PEG (5Y)1.42
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 (10/22/2025, 2:47:10 PM)
70.58
+0.83 (+1.19%)
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 Cap27.68B
Revenue(TTM)4.30B
Net Income(TTM)571.50M
Analysts84.57
Price Target104.5 (48.06%)
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 | 41.52 | ||
| Fwd PE | 26.86 | ||
| P/S | 6.44 | ||
| P/FCF | 48.49 | ||
| P/OCF | 28.02 | ||
| P/B | 10.76 | ||
| P/tB | 11.24 | ||
| EV/EBITDA | 25.75 |
EPS(TTM)1.7
EY2.41%
EPS(NY)2.63
Fwd EY3.72%
FCF(TTM)1.46
FCFY2.06%
OCF(TTM)2.52
OCFY3.57%
SpS10.97
BVpS6.56
TBVpS6.28
PEG (NY)1.55
PEG (5Y)1.42
Graham Number15.84
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%
ROICexgc growth 3Y55.18%
ROICexgc 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 | 5.01 |
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%