We assign a fundamental rating of 7 out of 10 to DXCM. DXCM was compared to 184 industry peers in the Health Care Equipment & Supplies industry. DXCM gets an excellent profitability rating and is at the same time showing great financial health properties. DXCM is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DXCM could be worth investigating further for growth and quality investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years DXCM always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of DXCM (9.61%) is better than 92.93% of its industry peers.
DXCM has a better Return On Equity (26.44%) than 97.28% of its industry peers.
DXCM has a better Return On Invested Capital (15.72%) than 95.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DXCM is above the industry average of 8.81%.
The last Return On Invested Capital (15.72%) for DXCM is above the 3 year average (11.25%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	9.61%
ROE	26.44%
ROIC	15.72%

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 15.96%, DXCM belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
In the last couple of years the Profit Margin of DXCM has grown nicely.
Looking at the Operating Margin, with a value of 18.41%, DXCM belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
In the last couple of years the Operating Margin of DXCM has grown nicely.
The Gross Margin of DXCM (60.20%) is better than 61.41% of its industry peers.
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	18.41%
PM (TTM)	15.96%
GM	60.2%

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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

DXCM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DXCM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DXCM has been increased compared to 5 years ago.
Compared to 1 year ago, DXCM has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 5.25 indicates that DXCM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.25, DXCM is doing good in the industry, outperforming 78.80% of the companies in the same industry.
DXCM has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as DXCM would need 2.36 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.36, DXCM belongs to the best of the industry, outperforming 85.33% of the companies in the same industry.
DXCM has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
DXCM has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: DXCM outperforms 44.02% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	2.36
Altman-Z	5.25

ROIC/WACC1.63

WACC9.67%

2.3 Liquidity

A Current Ratio of 1.56 indicates that DXCM should not have too much problems paying its short term obligations.
DXCM has a worse Current ratio (1.56) than 71.20% of its industry peers.
DXCM has a Quick Ratio of 1.38. 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 1.38 is in line compared to the rest of the industry. DXCM outperforms 40.22% of its industry peers.
The current and quick ratio evaluation for DXCM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.56
Quick Ratio	1.38

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, which is quite good.
The Earnings Per Share has been growing by 29.25% on average over the past years. This is a very strong growth
The Revenue has grown by 14.21% in the past year. This is quite good.
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)9.41%

EPS 3Y35.38%

EPS 5Y29.25%

EPS Q2Q%35.56%

Revenue 1Y (TTM)14.21%

Revenue growth 3Y18.1%

Revenue growth 5Y22.27%

Sales Q2Q%21.64%

3.2 Future

DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.05% yearly.
DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.28% yearly.

EPS Next Y27.38%

EPS Next 2Y23.51%

EPS Next 3Y22.59%

EPS Next 5Y22.05%

Revenue Next Year15.45%

Revenue Next 2Y14.08%

Revenue Next 3Y13.66%

Revenue Next 5Y13.28%

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 39.27 indicates a quite expensive valuation of DXCM.
DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 70.11% of the companies in the same industry.
DXCM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.30.
A Price/Forward Earnings ratio of 29.02 indicates a quite expensive valuation of DXCM.
Based on the Price/Forward Earnings ratio, DXCM is valued a bit cheaper than 72.28% 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 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	39.27
Fwd PE	29.02

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 72.83% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXCM indicates a rather cheap valuation: DXCM is cheaper than 81.52% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	26.83
EV/EBITDA	24.34

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.
DXCM's earnings are expected to grow with 22.59% in the coming years. This may justify a more expensive valuation.