NASDAQ:DXCM qualifies as a high growth stock and is consolidating.

In this article, we'll take a closer look at DEXCOM INC (NASDAQ:DXCM) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DEXCOM INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Assessment of NASDAQ:DXCM

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:DXCM has earned a 9 for growth:

• DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.56%, which is quite impressive.
• Measured over the past years, DXCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.54% on average per year.
• The Revenue has grown by 24.49% in the past year. This is a very strong growth!
• Measured over the past years, DXCM shows a very strong growth in Revenue. The Revenue has been growing by 28.56% on average per year.
• DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.18% yearly.
• The Revenue is expected to grow by 17.85% on average over the next years. This is quite good.

Unpacking NASDAQ:DXCM's Health Rating

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:

• DXCM has an Altman-Z score of 8.10. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of DXCM (8.10) is better than 87.24% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 4.87, DXCM belongs to the top of the industry, outperforming 83.16% of the companies in the same industry.
• DXCM has a Current Ratio of 2.84. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
• DXCM has a Quick Ratio of 2.48. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.

Exploring NASDAQ:DXCM's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:DXCM has earned a 8 out of 10:

• DXCM has a Return On Assets of 8.64%. This is amongst the best in the industry. DXCM outperforms 90.82% of its industry peers.
• Looking at the Return On Equity, with a value of 26.18%, DXCM belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 10.67%, DXCM belongs to the best of the industry, outperforming 91.33% of the companies in the same industry.
• The last Return On Invested Capital (10.67%) for DXCM is above the 3 year average (8.57%), which is a sign of increasing profitability.
• DXCM has a Profit Margin of 14.95%. This is amongst the best in the industry. DXCM outperforms 92.86% of its industry peers.
• DXCM has a Operating Margin of 16.96%. This is amongst the best in the industry. DXCM outperforms 90.31% of its industry peers.
• DXCM has a better Gross Margin (63.65%) than 65.82% of its industry peers.

How does the Setup look for NASDAQ:DXCM

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:DXCM this score is currently 7:

DXCM has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 116.25, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of DXCM

For an up to date full technical analysis you can check the technical report of DXCM

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.