While growth is established for NASDAQ:DXCM, the stock's valuation remains reasonable.

Last update: Oct 18, 2023

Take a closer look at DEXCOM INC (NASDAQ:DXCM), an affordable growth stock uncovered by our stock screener. NASDAQ:DXCM boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Analysis for NASDAQ:DXCM

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:DXCM has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 75.88% over the past year.
The Earnings Per Share has been growing by 23.89% on average over the past years. This is a very strong growth
DXCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.61%.
The Revenue has been growing by 32.28% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 23.60% on average over the next years. This is a very strong growth
Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 18.60% on average per year.

A Closer Look at Valuation for NASDAQ:DXCM

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:DXCM boasts a 5 out of 10:

DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 70.65% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, DXCM is valued a bit cheaper than 71.64% of the companies in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 70.15% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DXCM is valued cheaply inside the industry as 80.60% of the companies are valued more expensively.
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 33.52% in the coming years.

Assessing Health for NASDAQ:DXCM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DXCM has achieved a 6 out of 10:

An Altman-Z score of 5.31 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM has a better Altman-Z score (5.31) than 81.59% of its industry peers.
The Debt to FCF ratio of DXCM (7.00) is better than 84.08% of its industry peers.
DXCM has a Current Ratio of 2.42. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
DXCM has a Quick Ratio of 2.21. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis for NASDAQ:DXCM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:DXCM has achieved a 8:

The Return On Assets of DXCM (5.24%) is better than 87.06% of its industry peers.
DXCM's Return On Equity of 17.02% is amongst the best of the industry. DXCM outperforms 93.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.35%, DXCM belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
The last Return On Invested Capital (8.35%) for DXCM is above the 3 year average (7.78%), which is a sign of increasing profitability.
DXCM has a better Profit Margin (11.18%) than 89.05% of its industry peers.
In the last couple of years the Profit Margin of DXCM has grown nicely.
The Operating Margin of DXCM (14.45%) is better than 87.06% of its industry peers.
DXCM's Operating Margin has improved in the last couple of years.
DXCM has a Gross Margin of 64.37%. This is in the better half of the industry: DXCM outperforms 69.15% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of DXCM for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.