DEXCOM INC (DXCM) Stock Fundamental Analysis
NASDAQ:DXCM - Nasdaq - US2521311074 - Common Stock - Currency: USD
Taking everything into account, DXCM scores 7 out of 10 in our fundamental rating. DXCM was compared to 190 industry peers in the Health Care Equipment & Supplies industry. DXCM has an excellent profitability rating, but there are some minor concerns on its financial health. DXCM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make DXCM a good candidate 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.
DXCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DXCM has a better Return On Assets (8.89%) than 90.96% of its industry peers.
With an excellent Return On Equity value of 27.40%, DXCM belongs to the best of the industry, outperforming 97.34% of the companies in the same industry.
The Return On Invested Capital of DXCM (14.49%) is better than 95.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DXCM is above the industry average of 8.14%.
The last Return On Invested Capital (14.49%) for DXCM is above the 3 year average (11.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 27.4% | ||
| ROIC | 14.49% |
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 14.29%, DXCM belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
DXCM's Profit Margin has improved in the last couple of years.
The Operating Margin of DXCM (16.20%) is better than 87.77% of its industry peers.
In the last couple of years the Operating Margin of DXCM has grown nicely.
The Gross Margin of DXCM (61.78%) is better than 62.77% of its industry peers.
DXCM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.2% | ||
| PM (TTM) | 14.29% | ||
| GM | 61.78% |
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.
The number of shares outstanding for DXCM has been increased compared to 1 year ago.
Compared to 5 years ago, DXCM has more shares outstanding
The debt/assets ratio for DXCM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.33 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM has a Altman-Z score of 6.33. This is amongst the best in the industry. DXCM outperforms 84.04% of its industry peers.
DXCM has a debt to FCF ratio of 3.96. This is a good value and a sign of high solvency as DXCM would need 3.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.96, DXCM belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that DXCM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, DXCM is doing worse than 68.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 6.33 |
ROIC/WACC1.67
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.47 indicates that DXCM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, DXCM is not doing good in the industry: 77.66% of the companies in the same industry are doing better.
DXCM has a Quick Ratio of 1.28. 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 1.28 is on the low side compared to the rest of the industry. DXCM is outperformed by 67.02% of its industry peers.
DXCM does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.47 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.27% over the past year.
DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.25% yearly.
The Revenue has grown by 11.34% 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)9.27%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%-10%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%7.64%
3.2 Future
Based on estimates for the next years, DXCM will show a very strong growth in Earnings Per Share. The EPS will grow by 21.71% on average per year.
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 Y24.7%
EPS Next 2Y23.7%
EPS Next 3Y23.36%
EPS Next 5Y21.71%
Revenue Next Year14.43%
Revenue Next 2Y15.1%
Revenue Next 3Y15.17%
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
Based on the Price/Earnings ratio of 54.31, the valuation of DXCM can be described as expensive.
Based on the Price/Earnings ratio, DXCM is valued a bit cheaper than the industry average as 67.55% of the companies are valued more expensively.
DXCM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 30.30.
With a Price/Forward Earnings ratio of 43.55, DXCM can be considered very expensive at the moment.
70.74% of the companies in the same industry are more expensive than DXCM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DXCM to the average of the S&P500 Index (23.06), we can say DXCM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.31 | ||
| Fwd PE | 43.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 68.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DXCM is valued a bit cheaper than the industry average as 74.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.49 | ||
| EV/EBITDA | 37.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DXCM does not grow enough to justify the current Price/Earnings ratio.
DXCM has an outstanding profitability rating, which may justify a higher PE ratio.
DXCM's earnings are expected to grow with 23.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.2
PEG (5Y)1.86
EPS Next 2Y23.7%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
DXCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DXCM (2/21/2025, 11:24:38 AM)
89.605
+0.27 (+0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change-0.76%
Ins Owners0.33%
Ins Owner Change1.42%
Market Cap35.00B
Analysts85.63
Price Target104.35 (16.46%)
Short Float %2.53%
Short Ratio2.86
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)-5.07%
Min EPS beat(2)-11.66%
Max EPS beat(2)1.51%
EPS beat(4)3
Avg EPS beat(4)3.82%
Min EPS beat(4)-11.66%
Max EPS beat(4)16.17%
EPS beat(8)7
Avg EPS beat(8)16.74%
EPS beat(12)9
Avg EPS beat(12)9.83%
EPS beat(16)12
Avg EPS beat(16)13.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-0.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)-0.85%
PT rev (3m)0.76%
EPS NQ rev (1m)-4.03%
EPS NQ rev (3m)-3.93%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.31 | ||
| Fwd PE | 43.55 | ||
| P/S | 8.68 | ||
| P/FCF | 55.49 | ||
| P/OCF | 35.37 | ||
| P/B | 16.65 | ||
| P/tB | 17.71 | ||
| EV/EBITDA | 37.7 |
EPS(TTM)1.65
EY1.84%
EPS(NY)2.06
Fwd EY2.3%
FCF(TTM)1.61
FCFY1.8%
OCF(TTM)2.53
OCFY2.83%
SpS10.33
BVpS5.38
TBVpS5.06
PEG (NY)2.2
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 27.4% | ||
| ROCE | 18.4% | ||
| ROIC | 14.49% | ||
| ROICexc | 52.88% | ||
| ROICexgc | 60.76% | ||
| OM | 16.2% | ||
| PM (TTM) | 14.29% | ||
| GM | 61.78% | ||
| FCFM | 15.64% |
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-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.96 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 164.81% | ||
| Cap/Sales | 8.9% | ||
| Interest Coverage | 57.32 | ||
| Cash Conversion | 113.58% | ||
| Profit Quality | 109.46% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 6.33 |
F-Score7
WACC8.67%
ROIC/WACC1.67
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)9.27%
EPS 3Y35.38%
EPS 5Y29.25%
EPS Q2Q%-10%
EPS Next Y24.7%
EPS Next 2Y23.7%
EPS Next 3Y23.36%
EPS Next 5Y21.71%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y18.1%
Revenue growth 5Y22.27%
Sales Q2Q%7.64%
Revenue Next Year14.43%
Revenue Next 2Y15.1%
Revenue Next 3Y15.17%
Revenue Next 5Y14.01%
EBIT growth 1Y6.38%
EBIT growth 3Y30.52%
EBIT growth 5Y33.11%
EBIT Next Year79.19%
EBIT Next 3Y38.49%
EBIT Next 5Y28.14%
FCF growth 1Y23.21%
FCF growth 3Y127.88%
FCF growth 5Y36.21%
OCF growth 1Y32.2%
OCF growth 3Y30.77%
OCF growth 5Y25.76%