DEXCOM INC (DXCM) Stock Fundamental Analysis
NASDAQ:DXCM - Nasdaq - US2521311074 - Common Stock - Currency: USD
Overall DXCM gets a fundamental rating of 6 out of 10. We evaluated DXCM against 187 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! With these ratings, DXCM could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year DXCM was profitable.
DXCM had a positive operating cash flow in the past year.
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 89.84% of the companies in the same industry.
DXCM's Return On Equity of 22.21% is amongst the best of the industry. DXCM outperforms 94.12% of its industry peers.
DXCM's Return On Invested Capital of 14.52% is amongst the best of the industry. DXCM outperforms 95.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DXCM is above the industry average of 8.08%.
The last Return On Invested Capital (14.52%) for DXCM is above the 3 year average (11.25%), which is a sign of increasing profitability.
| 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
DXCM's Profit Margin of 13.29% is amongst the best of the industry. DXCM outperforms 89.30% 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 87.17% of the companies in the same industry.
DXCM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 60.01%, DXCM perfoms like the industry average, outperforming 59.89% of the companies in the same 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DXCM is still creating some value.
The number of shares outstanding for DXCM has been increased compared to 1 year ago.
DXCM has more shares outstanding than it did 5 years ago.
DXCM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.56 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM's Altman-Z score of 5.56 is amongst the best of the industry. DXCM outperforms 81.82% 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 better Debt to FCF ratio (4.38) than 81.82% 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.
Looking at the Debt to Equity ratio, with a value of 0.50, DXCM is doing worse than 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 5.56 |
ROIC/WACC1.74
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.52 indicates that DXCM should not have too much problems paying its short term obligations.
The Current ratio of DXCM (1.52) is worse than 75.94% of its industry peers.
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.
DXCM's Quick ratio of 1.35 is on the low side compared to the rest of the industry. DXCM is outperformed by 65.24% 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%.
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 9.30% 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)-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 23.00% on average over the next years. This is a very strong growth
DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.08% yearly.
EPS Next Y25.5%
EPS Next 2Y25.23%
EPS Next 3Y24.56%
EPS Next 5Y23%
Revenue Next Year14.72%
Revenue Next 2Y15.07%
Revenue Next 3Y14.95%
Revenue Next 5Y14.08%
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 47.54 indicates a quite expensive valuation of DXCM.
Based on the Price/Earnings ratio, DXCM is valued a bit cheaper than the industry average as 68.98% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.82. DXCM is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 31.23, the valuation of DXCM can be described as expensive.
DXCM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 71.12% of the companies in the same industry.
DXCM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.54 | ||
| Fwd PE | 31.23 |
4.2 Price Multiples
70.05% of the companies in the same industry are more expensive than DXCM, based on the Enterprise Value to EBITDA ratio.
74.87% 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 | 55.52 | ||
| EV/EBITDA | 30.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DXCM may justify a higher PE ratio.
A more expensive valuation may be justified as DXCM's earnings are expected to grow with 24.56% in the coming years.
PEG (NY)1.86
PEG (5Y)1.63
EPS Next 2Y25.23%
EPS Next 3Y24.56%
5. Dividend
5.1 Amount
DXCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.82
-0.13 (-0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change0.79%
Ins Owners0.26%
Ins Owner Change11.04%
Market Cap31.69B
Analysts85.29
Price Target105.48 (30.51%)
Short Float %2.18%
Short Ratio2.36
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)3.6%
PT rev (3m)4.28%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.54 | ||
| Fwd PE | 31.23 | ||
| P/S | 7.37 | ||
| P/FCF | 55.52 | ||
| P/OCF | 32.08 | ||
| P/B | 12.32 | ||
| P/tB | 12.87 | ||
| EV/EBITDA | 30.19 |
EPS(TTM)1.7
EY2.1%
EPS(NY)2.59
Fwd EY3.2%
FCF(TTM)1.46
FCFY1.8%
OCF(TTM)2.52
OCFY3.12%
SpS10.97
BVpS6.56
TBVpS6.28
PEG (NY)1.86
PEG (5Y)1.63
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 | 5.56 |
F-Score6
WACC8.34%
ROIC/WACC1.74
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 Y25.5%
EPS Next 2Y25.23%
EPS Next 3Y24.56%
EPS Next 5Y23%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%15.21%
Revenue Next Year14.72%
Revenue Next 2Y15.07%
Revenue Next 3Y14.95%
Revenue Next 5Y14.08%
EBIT growth 1Y6.1%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year76.6%
EBIT Next 3Y38.89%
EBIT Next 5Y31.85%
FCF growth 1Y22.49%
FCF growth 3Y127.88%
FCF growth 5Y36.21%
OCF growth 1Y28.04%
OCF growth 3Y30.77%
OCF growth 5Y25.76%