DEXCOM INC (DXCM) Stock Fundamental Analysis
USA - NASDAQ:DXCM - US2521311074 - Common Stock
66.45 USD
-0.65 (-0.97%)
DXCM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 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! This makes DXCM very considerable 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.
Each year in the past 5 years DXCM had a positive operating cash flow.
1.2 Ratios
DXCM has a better Return On Assets (7.80%) than 90.05% of its industry peers.
With an excellent Return On Equity value of 22.21%, DXCM belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
DXCM has a Return On Invested Capital of 14.52%. This is amongst the best in the industry. DXCM outperforms 94.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DXCM is above the industry average of 8.97%.
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
DXCM has a Profit Margin of 13.29%. This is amongst the best in the industry. DXCM outperforms 89.01% of its industry peers.
In the last couple of years the Profit Margin of DXCM has grown nicely.
Looking at the Operating Margin, with a value of 17.22%, DXCM belongs to the top of the industry, outperforming 87.43% of the companies in the same industry.
DXCM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 60.01%, DXCM is doing good in the industry, outperforming 60.73% of the companies in the same 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DXCM is still creating some value.
Compared to 1 year ago, DXCM has more shares outstanding
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 4.88. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
DXCM has a better Altman-Z score (4.88) than 80.10% of its industry peers.
The Debt to FCF ratio of DXCM is 4.38, which is a neutral value as it means it would take DXCM, 4.38 years of fcf income to pay off all of its debts.
DXCM has a better Debt to FCF ratio (4.38) than 81.15% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that DXCM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.50, DXCM is not doing good in the industry: 60.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.79
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.52 indicates that DXCM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, DXCM is not doing good in the industry: 73.82% of the companies in the same industry are doing better.
A Quick Ratio of 1.35 indicates that DXCM should not have too much problems paying its short term obligations.
The Quick ratio of DXCM (1.35) is worse than 63.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for DXCM have decreased by -2.86% in the last year.
The Earnings Per Share has been growing by 29.25% on average over the past years. This is a very strong growth
Looking at the last year, DXCM shows a quite strong growth in Revenue. The Revenue has grown by 9.30% 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)-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
The Revenue is expected to grow by 14.08% on average over the next years. This is quite good.
EPS Next Y26.84%
EPS Next 2Y26.2%
EPS Next 3Y24.65%
EPS Next 5Y23%
Revenue Next Year15.01%
Revenue Next 2Y15.3%
Revenue Next 3Y14.97%
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.
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
Based on the Price/Earnings ratio of 39.09, the valuation of DXCM can be described as expensive.
69.63% of the companies in the same industry are more expensive than DXCM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, DXCM is valued a bit more expensive.
DXCM is valuated quite expensively with a Price/Forward Earnings ratio of 25.29.
DXCM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 73.82% of the companies in the same industry.
DXCM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.09 | ||
| Fwd PE | 25.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than the industry average as 72.25% 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 76.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.65 | ||
| EV/EBITDA | 24.69 |
4.3 Compensation for Growth
DXCM's 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)1.46
PEG (5Y)1.34
EPS Next 2Y26.2%
EPS Next 3Y24.65%
5. Dividend
5.1 Amount
DXCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DXCM (9/29/2025, 3:35:08 PM)
66.45
-0.65 (-0.97%)
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-0.2%
Ins Owners0.19%
Ins Owner Change2.47%
Market Cap26.06B
Analysts85.71
Price Target105.4 (58.62%)
Short Float %2.84%
Short Ratio2.93
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)-0.08%
PT rev (3m)3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.09 | ||
| Fwd PE | 25.29 | ||
| P/S | 6.06 | ||
| P/FCF | 45.65 | ||
| P/OCF | 26.38 | ||
| P/B | 10.13 | ||
| P/tB | 10.59 | ||
| EV/EBITDA | 24.69 |
EPS(TTM)1.7
EY2.56%
EPS(NY)2.63
Fwd EY3.95%
FCF(TTM)1.46
FCFY2.19%
OCF(TTM)2.52
OCFY3.79%
SpS10.97
BVpS6.56
TBVpS6.28
PEG (NY)1.46
PEG (5Y)1.34
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 | 4.88 |
F-Score6
WACC8.1%
ROIC/WACC1.79
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 5Y23%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%15.21%
Revenue Next Year15.01%
Revenue Next 2Y15.3%
Revenue Next 3Y14.97%
Revenue Next 5Y14.08%
EBIT growth 1Y6.1%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year77.25%
EBIT Next 3Y38.83%
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%