DEXCOM INC (DXCM) Stock Fundamental Analysis
NASDAQ:DXCM - Nasdaq - US2521311074 - Common Stock - Currency: USD
Taking everything into account, DXCM scores 6 out of 10 in our fundamental rating. DXCM was compared to 189 industry peers in the Health Care Equipment & Supplies industry. While DXCM has a great profitability rating, there are some minor concerns on its financial health. DXCM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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 (8.89%) is better than 90.48% of its industry peers.
DXCM has a Return On Equity of 27.40%. This is amongst the best in the industry. DXCM outperforms 96.30% of its industry peers.
With an excellent Return On Invested Capital value of 14.49%, DXCM belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DXCM is above the industry average of 7.71%.
The 3 year average ROIC (11.25%) for DXCM is below the current ROIC(14.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 27.4% | ||
| ROIC | 14.49% |
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 14.29%, DXCM belongs to the top of the industry, outperforming 91.01% of the companies in the same industry.
In the last couple of years the Profit Margin of DXCM has grown nicely.
DXCM's Operating Margin of 16.20% is amongst the best of the industry. DXCM outperforms 87.30% of its industry peers.
In the last couple of years the Operating Margin of DXCM has grown nicely.
DXCM has a better Gross Margin (61.78%) than 62.43% of its industry peers.
DXCM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.2% | ||
| PM (TTM) | 14.29% | ||
| GM | 61.78% |
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 DXCM is still creating some value.
DXCM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DXCM has more shares outstanding
DXCM has a better debt/assets ratio than last year.
2.2 Solvency
DXCM has an Altman-Z score of 5.33. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
DXCM has a better Altman-Z score (5.33) than 80.42% of its industry peers.
The Debt to FCF ratio of DXCM is 3.96, which is a good value as it means it would take DXCM, 3.96 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.96, DXCM belongs to the best of the industry, outperforming 84.66% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that DXCM is somewhat dependend on debt financing.
DXCM has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: DXCM underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 5.33 |
ROIC/WACC1.71
WACC8.47%
2.3 Liquidity
DXCM has a Current Ratio of 1.47. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
DXCM has a Current ratio of 1.47. This is in the lower half of the industry: DXCM underperforms 76.19% of its industry peers.
DXCM has a Quick Ratio of 1.28. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
DXCM's Quick ratio of 1.28 is on the low side compared to the rest of the industry. DXCM is outperformed by 69.84% of its industry peers.
The current and quick ratio evaluation for DXCM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
DXCM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.60%.
Measured over the past years, DXCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.25% on average per year.
Looking at the last year, DXCM shows a quite strong growth in Revenue. The Revenue has grown by 11.34% in the last year.
The Revenue has been growing by 22.27% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-0.6%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%0%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%12.49%
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 20.38% on average per year.
Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 14.62% on average per year.
EPS Next Y24.84%
EPS Next 2Y23.78%
EPS Next 3Y23.37%
EPS Next 5Y20.38%
Revenue Next Year14.47%
Revenue Next 2Y14.96%
Revenue Next 3Y15.03%
Revenue Next 5Y14.62%
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
With a Price/Earnings ratio of 49.47, DXCM can be considered very expensive at the moment.
DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 69.31% of the companies in the same industry.
DXCM is valuated expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.29, which means the current valuation is very expensive for DXCM.
74.07% of the companies in the same industry are more expensive than DXCM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, DXCM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.47 | ||
| Fwd PE | 32.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than the industry average as 69.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DXCM is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.74 | ||
| EV/EBITDA | 29.27 |
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.
A more expensive valuation may be justified as DXCM's earnings are expected to grow with 23.37% in the coming years.
PEG (NY)1.99
PEG (5Y)1.69
EPS Next 2Y23.78%
EPS Next 3Y23.37%
5. Dividend
5.1 Amount
DXCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.62
+11.36 (+16.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner Change0.48%
Ins Owners0.35%
Ins Owner Change9.97%
Market Cap32.00B
Analysts86.06
Price Target103.23 (26.48%)
Short Float %2.72%
Short Ratio2.34
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)-5.07%
Min EPS beat(2)-11.66%
Max EPS beat(2)1.51%
EPS beat(4)3
Avg EPS beat(4)3.82%
Min EPS beat(4)-11.66%
Max EPS beat(4)16.17%
EPS beat(8)7
Avg EPS beat(8)16.74%
EPS beat(12)9
Avg EPS beat(12)9.83%
EPS beat(16)12
Avg EPS beat(16)13.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-0.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)-1.43%
PT rev (3m)2.86%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)-16.54%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.47 | ||
| Fwd PE | 32.29 | ||
| P/S | 7.94 | ||
| P/FCF | 50.74 | ||
| P/OCF | 32.34 | ||
| P/B | 15.22 | ||
| P/tB | 16.19 | ||
| EV/EBITDA | 29.27 |
EPS(TTM)1.65
EY2.02%
EPS(NY)2.53
Fwd EY3.1%
FCF(TTM)1.61
FCFY1.97%
OCF(TTM)2.52
OCFY3.09%
SpS10.29
BVpS5.36
TBVpS5.04
PEG (NY)1.99
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 27.4% | ||
| ROCE | 18.4% | ||
| ROIC | 14.49% | ||
| ROICexc | 52.88% | ||
| ROICexgc | 60.76% | ||
| OM | 16.2% | ||
| PM (TTM) | 14.29% | ||
| GM | 61.78% | ||
| FCFM | 15.64% |
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-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.96 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 164.81% | ||
| Cap/Sales | 8.9% | ||
| Interest Coverage | 57.32 | ||
| Cash Conversion | 113.58% | ||
| Profit Quality | 109.46% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 5.33 |
F-Score7
WACC8.47%
ROIC/WACC1.71
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)-0.6%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%0%
EPS Next Y24.84%
EPS Next 2Y23.78%
EPS Next 3Y23.37%
EPS Next 5Y20.38%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%12.49%
Revenue Next Year14.47%
Revenue Next 2Y14.96%
Revenue Next 3Y15.03%
Revenue Next 5Y14.62%
EBIT growth 1Y6.38%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year76.73%
EBIT Next 3Y37.42%
EBIT Next 5Y29.37%
FCF growth 1Y23.21%
FCF growth 3Y127.88%
FCF growth 5Y36.21%
OCF growth 1Y32.2%
OCF growth 3Y30.77%
OCF growth 5Y25.76%