DEXCOM INC (DXCM) Stock Fundamental Analysis
NASDAQ:DXCM - Nasdaq - US2521311074 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DXCM. DXCM was compared to 187 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 growing strongly while it is still valued neutral. This is a good combination! These ratings would make DXCM suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DXCM was profitable.
DXCM had a positive operating cash flow in the past year.
Each year in the past 5 years DXCM has been profitable.
In the past 5 years DXCM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DXCM (7.93%) is better than 89.84% of its industry peers.
DXCM's Return On Equity of 23.61% is amongst the best of the industry. DXCM outperforms 94.65% of its industry peers.
DXCM has a Return On Invested Capital of 14.54%. This is amongst the best in the industry. DXCM outperforms 95.72% of its industry peers.
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
With an excellent Profit Margin value of 12.90%, DXCM belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
DXCM's Profit Margin has improved in the last couple of years.
DXCM has a Operating Margin of 16.54%. This is amongst the best in the industry. DXCM outperforms 87.17% of its industry peers.
DXCM's Operating Margin has improved in the last couple of years.
DXCM has a better Gross Margin (60.72%) than 60.96% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DXCM is creating some value.
Compared to 1 year ago, DXCM has more shares outstanding
The number of shares outstanding for DXCM has been increased compared to 5 years ago.
The debt/assets ratio for DXCM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.15 indicates that DXCM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.15, DXCM belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
The Debt to FCF ratio of DXCM is 4.35, which is a neutral value as it means it would take DXCM, 4.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DXCM (4.35) is better than 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 Debt to Equity ratio of 0.57. This is in the lower half of the industry: DXCM underperforms 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.74
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.50 indicates that DXCM should not have too much problems paying its short term obligations.
DXCM has a Current ratio of 1.50. This is in the lower half of the industry: DXCM underperforms 76.47% of its industry peers.
DXCM has a Quick Ratio of 1.32. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.32, DXCM is doing worse than 67.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
DXCM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.60%.
DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.25% yearly.
DXCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.11%.
DXCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.27% yearly.
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
The Earnings Per Share is expected to grow by 22.56% on average over the next years. This is a very strong growth
DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.01% yearly.
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.
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
With a Price/Earnings ratio of 50.65, DXCM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DXCM is valued a bit cheaper than 68.98% of the companies in the same industry.
DXCM is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.28, which means the current valuation is very expensive for DXCM.
DXCM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 69.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. DXCM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.65 | ||
| Fwd PE | 32.28 |
4.2 Price Multiples
69.52% of the companies in the same industry are more expensive than DXCM, based on the Enterprise Value to EBITDA ratio.
72.73% of the companies in the same industry are more expensive than DXCM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.98 | ||
| EV/EBITDA | 35.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 24.56% in the coming years.
PEG (NY)1.99
PEG (5Y)1.73
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 |
83.58
-3.71 (-4.25%)
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 Cap32.77B
Analysts85.45
Price Target101.81 (21.81%)
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 | 50.65 | ||
| Fwd PE | 32.28 | ||
| P/S | 7.9 | ||
| P/FCF | 56.98 | ||
| P/OCF | 33.99 | ||
| P/B | 14.46 | ||
| P/tB | 15.26 | ||
| EV/EBITDA | 35.37 |
EPS(TTM)1.65
EY1.97%
EPS(NY)2.59
Fwd EY3.1%
FCF(TTM)1.47
FCFY1.76%
OCF(TTM)2.46
OCFY2.94%
SpS10.58
BVpS5.78
TBVpS5.48
PEG (NY)1.99
PEG (5Y)1.73
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 | 6.15 |
F-Score6
WACC8.34%
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%