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. 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 could make DXCM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
DXCM had positive earnings in the past year.
DXCM had a positive operating cash flow in the past year.
DXCM had positive earnings in each of the past 5 years.
DXCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DXCM has a Return On Assets of 7.93%. This is amongst the best in the industry. DXCM outperforms 89.42% of its industry peers.
The Return On Equity of DXCM (23.61%) is better than 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 14.54%, 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 7.87%.
The 3 year average ROIC (11.25%) for DXCM is below the current ROIC(14.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 23.61% | ||
| ROIC | 14.54% |
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
DXCM's Profit Margin of 12.90% is amongst the best of the industry. DXCM outperforms 90.48% of its industry peers.
In the last couple of years the Profit Margin of DXCM has grown nicely.
DXCM's Operating Margin of 16.54% is amongst the best of the industry. DXCM outperforms 87.30% of its industry peers.
DXCM's Operating Margin has improved in the last couple of years.
DXCM has a better Gross Margin (60.72%) than 60.32% of its industry peers.
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 | 16.54% | ||
| PM (TTM) | 12.9% | ||
| GM | 60.72% |
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
Compared to 1 year ago, DXCM has an improved debt to assets ratio.
2.2 Solvency
DXCM has an Altman-Z score of 6.02. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.02, DXCM belongs to the best of the industry, outperforming 82.01% of the companies in the same industry.
DXCM has a debt to FCF ratio of 4.35. This is a neutral value as DXCM would need 4.35 years to pay back of all of its debts.
The Debt to FCF ratio of DXCM (4.35) is better than 83.07% of its industry peers.
DXCM has a Debt/Equity ratio of 0.57. This is a neutral value indicating DXCM is somewhat dependend on debt financing.
The Debt to Equity ratio of DXCM (0.57) is worse than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.69
WACC8.6%
2.3 Liquidity
DXCM has a Current Ratio of 1.50. 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 1.50, DXCM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
DXCM has a Quick Ratio of 1.32. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.32, DXCM is doing worse than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
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.
DXCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.11%.
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)9.11%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%12.49%
3.2 Future
The Earnings Per Share is expected to grow by 20.38% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.62% on average over the next years. This is quite good.
EPS Next Y25.28%
EPS Next 2Y25.18%
EPS Next 3Y24.59%
EPS Next 5Y20.38%
Revenue Next Year14.64%
Revenue Next 2Y14.99%
Revenue Next 3Y14.86%
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.
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
The Price/Earnings ratio is 51.13, which means the current valuation is very expensive for DXCM.
Based on the Price/Earnings ratio, DXCM is valued a bit cheaper than 68.78% of the companies in the same industry.
DXCM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 32.63, which means the current valuation is very expensive for DXCM.
69.31% of the companies in the same industry are more expensive than DXCM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.85. DXCM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.13 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 69.31% of the companies listed in the same industry.
71.96% 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 | 57.51 | ||
| EV/EBITDA | 34.31 |
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.
The excellent profitability rating of DXCM may justify a higher PE ratio.
DXCM's earnings are expected to grow with 24.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)1.75
EPS Next 2Y25.18%
EPS Next 3Y24.59%
5. Dividend
5.1 Amount
DXCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DXCM (5/23/2025, 2:27:00 PM)
84.365
-0.47 (-0.55%)
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 Change2.6%
Ins Owners0.35%
Ins Owner Change10.96%
Market Cap33.08B
Analysts86.06
Price Target101.15 (19.9%)
Short Float %2.92%
Short Ratio2.42
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)0
Avg EPS beat(2)-7.87%
Min EPS beat(2)-11.66%
Max EPS beat(2)-4.09%
EPS beat(4)2
Avg EPS beat(4)-1.25%
Min EPS beat(4)-11.66%
Max EPS beat(4)9.24%
EPS beat(8)6
Avg EPS beat(8)14.5%
EPS beat(12)9
Avg EPS beat(12)12.8%
EPS beat(16)11
Avg EPS beat(16)12.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-0.19%
Revenue beat(8)2
Avg Revenue beat(8)-0.7%
Revenue beat(12)4
Avg Revenue beat(12)-0.65%
Revenue beat(16)6
Avg Revenue beat(16)-0.11%
PT rev (1m)-4.12%
PT rev (3m)1.65%
EPS NQ rev (1m)-6.02%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.13 | ||
| Fwd PE | 32.63 | ||
| P/S | 7.98 | ||
| P/FCF | 57.51 | ||
| P/OCF | 34.31 | ||
| P/B | 14.59 | ||
| P/tB | 15.4 | ||
| EV/EBITDA | 34.31 |
EPS(TTM)1.65
EY1.96%
EPS(NY)2.59
Fwd EY3.06%
FCF(TTM)1.47
FCFY1.74%
OCF(TTM)2.46
OCFY2.91%
SpS10.58
BVpS5.78
TBVpS5.48
PEG (NY)2.02
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 23.61% | ||
| ROCE | 18.47% | ||
| ROIC | 14.54% | ||
| ROICexc | 53.32% | ||
| ROICexgc | 60.37% | ||
| OM | 16.54% | ||
| PM (TTM) | 12.9% | ||
| GM | 60.72% | ||
| FCFM | 13.87% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 172.69% | ||
| Cap/Sales | 9.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.79% | ||
| Profit Quality | 107.47% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 6.02 |
F-Score6
WACC8.6%
ROIC/WACC1.69
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 Y25.28%
EPS Next 2Y25.18%
EPS Next 3Y24.59%
EPS Next 5Y20.38%
Revenue 1Y (TTM)9.11%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%12.49%
Revenue Next Year14.64%
Revenue Next 2Y14.99%
Revenue Next 3Y14.86%
Revenue Next 5Y14.62%
EBIT growth 1Y2.68%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year76.73%
EBIT Next 3Y37.42%
EBIT Next 5Y29.37%
FCF growth 1Y38.27%
FCF growth 3Y127.88%
FCF growth 5Y36.21%
OCF growth 1Y27.88%
OCF growth 3Y30.77%
OCF growth 5Y25.76%