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. While DXCM has a great profitability rating, there are some minor concerns on its financial health. DXCM is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DXCM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DXCM had positive earnings in the past year.
In the past year DXCM had a positive cash flow from operations.
In the past 5 years DXCM has always been profitable.
Each year in the past 5 years DXCM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.93%, DXCM belongs to the top of the industry, outperforming 89.84% of the companies in the same industry.
The Return On Equity of DXCM (23.61%) is better than 94.65% of its industry peers.
With an excellent Return On Invested Capital value of 14.54%, DXCM belongs to the best of the industry, outperforming 95.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DXCM is above the industry average of 7.89%.
The last Return On Invested Capital (14.54%) for DXCM is above the 3 year average (11.25%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.90%, DXCM belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Profit Margin of DXCM has grown nicely.
DXCM has a better Operating Margin (16.54%) than 87.17% of its industry peers.
DXCM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 60.72%, DXCM is doing good in the industry, outperforming 60.96% 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 | 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.
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
DXCM has an Altman-Z score of 5.92. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
DXCM has a better Altman-Z score (5.92) than 79.14% of its industry peers.
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.
DXCM has a Debt to FCF ratio of 4.35. This is amongst the best in the industry. DXCM outperforms 83.96% 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.
DXCM has a worse Debt to Equity ratio (0.57) than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.74
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.50 indicates that DXCM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, DXCM is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
A Quick Ratio of 1.32 indicates that DXCM should not have too much problems paying its short term obligations.
The Quick ratio of DXCM (1.32) is worse than 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for DXCM have decreased by -0.60% in the last year.
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 9.11% in the last year.
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)-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
DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.56% yearly.
Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 14.01% on average per year.
EPS Next Y25.42%
EPS Next 2Y25.27%
EPS Next 3Y24.56%
EPS Next 5Y22.56%
Revenue Next Year14.72%
Revenue Next 2Y15%
Revenue Next 3Y14.87%
Revenue Next 5Y14.01%
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.
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
Based on the Price/Earnings ratio of 50.26, the valuation of DXCM can be described as expensive.
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.
DXCM is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.03, DXCM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DXCM is valued a bit cheaper than the industry average as 69.52% of the companies are valued more expensively.
DXCM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.26 | ||
| Fwd PE | 32.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 70.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DXCM is valued a bit cheaper than 73.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.53 | ||
| EV/EBITDA | 33.49 |
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.
DXCM's earnings are expected to grow with 24.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.98
PEG (5Y)1.72
EPS Next 2Y25.27%
EPS Next 3Y24.56%
5. Dividend
5.1 Amount
No dividends for DXCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.93
-0.65 (-0.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change3.33%
Ins Owners0.27%
Ins Owner Change12.94%
Market Cap32.52B
Analysts85.29
Price Target101.81 (22.77%)
Short Float %2.4%
Short Ratio2.49
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)0.66%
PT rev (3m)-3.49%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-6.47%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.26 | ||
| Fwd PE | 32.03 | ||
| P/S | 7.84 | ||
| P/FCF | 56.53 | ||
| P/OCF | 33.73 | ||
| P/B | 14.35 | ||
| P/tB | 15.14 | ||
| EV/EBITDA | 33.49 |
EPS(TTM)1.65
EY1.99%
EPS(NY)2.59
Fwd EY3.12%
FCF(TTM)1.47
FCFY1.77%
OCF(TTM)2.46
OCFY2.96%
SpS10.58
BVpS5.78
TBVpS5.48
PEG (NY)1.98
PEG (5Y)1.72
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 | 5.92 |
F-Score6
WACC8.37%
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)-0.6%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%0%
EPS Next Y25.42%
EPS Next 2Y25.27%
EPS Next 3Y24.56%
EPS Next 5Y22.56%
Revenue 1Y (TTM)9.11%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%12.49%
Revenue Next Year14.72%
Revenue Next 2Y15%
Revenue Next 3Y14.87%
Revenue Next 5Y14.01%
EBIT growth 1Y2.68%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year76.08%
EBIT Next 3Y38.17%
EBIT Next 5Y31.52%
FCF growth 1Y38.27%
FCF growth 3Y127.88%
FCF growth 5Y36.21%
OCF growth 1Y27.88%
OCF growth 3Y30.77%
OCF growth 5Y25.76%