DEXCOM INC (DXCM)
US2521311074 - Common Stock
DXCM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While DXCM has a great profitability rating, 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
DXCM had positive earnings in the past year.
DXCM had a positive operating cash flow in the past year.
In the past 5 years DXCM has always been profitable.
DXCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.71%, DXCM belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
DXCM has a Return On Equity of 34.40%. This is amongst the best in the industry. DXCM outperforms 97.86% of its industry peers.
The Return On Invested Capital of DXCM (11.41%) is better than 93.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DXCM is in line with the industry average of 8.19%.
The 3 year average ROIC (8.57%) for DXCM is below the current ROIC(11.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 34.4% | ||
| ROIC | 11.41% |
ROA(3y)6.46%
ROA(5y)7.28%
ROE(3y)17.6%
ROE(5y)18.87%
ROIC(3y)8.57%
ROIC(5y)7.84%
1.3 Margins
DXCM has a Profit Margin of 17.22%. This is amongst the best in the industry. DXCM outperforms 91.98% of its industry peers.
In the last couple of years the Profit Margin of DXCM has declined.
Looking at the Operating Margin, with a value of 16.30%, DXCM belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Operating Margin of DXCM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 62.10%, DXCM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
DXCM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 17.22% | ||
| GM | 62.1% |
OM growth 3Y0.29%
OM growth 5YN/A
PM growth 3Y-19.38%
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y-0.22%
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.
DXCM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DXCM has been increased compared to 5 years ago.
DXCM has a worse debt/assets ratio than last year.
2.2 Solvency
DXCM has an Altman-Z score of 5.81. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
DXCM has a better Altman-Z score (5.81) than 81.82% of its industry peers.
DXCM has a debt to FCF ratio of 4.67. This is a neutral value as DXCM would need 4.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.67, DXCM belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that DXCM has dependencies on debt financing.
The Debt to Equity ratio of DXCM (1.26) is worse than 79.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 5.81 |
ROIC/WACC1.31
WACC8.74%
2.3 Liquidity
DXCM has a Current Ratio of 2.46. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
DXCM's Current ratio of 2.46 is in line compared to the rest of the industry. DXCM outperforms 43.32% of its industry peers.
A Quick Ratio of 2.12 indicates that DXCM has no problem at all paying its short term obligations.
DXCM has a Quick ratio (2.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.93%, which is quite impressive.
DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.54% yearly.
The Revenue has grown by 16.19% in the past year. This is quite good.
The Revenue has been growing by 28.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)25.93%
EPS 3Y25.17%
EPS 5Y83.54%
EPS Q2Q%-10%
Revenue 1Y (TTM)16.19%
Revenue growth 3Y23.42%
Revenue growth 5Y28.56%
Sales Q2Q%1.97%
3.2 Future
DXCM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.56% yearly.
The Revenue is expected to grow by 14.25% on average over the next years. This is quite good.
EPS Next Y15.33%
EPS Next 2Y17.22%
EPS Next 3Y18.43%
EPS Next 5Y18.56%
Revenue Next Year11.48%
Revenue Next 2Y13.13%
Revenue Next 3Y13.9%
Revenue Next 5Y14.25%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 47.08, DXCM can be considered very expensive at the moment.
DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 67.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. DXCM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 38.58, which means the current valuation is very expensive for DXCM.
Based on the Price/Forward Earnings ratio, DXCM is valued a bit cheaper than the industry average as 71.66% of the companies are valued more expensively.
DXCM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.08 | ||
| Fwd PE | 38.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 68.45% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 74.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.44 | ||
| EV/EBITDA | 32.38 |
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 18.43% in the coming years.
PEG (NY)3.07
PEG (5Y)0.56
EPS Next 2Y17.22%
EPS Next 3Y18.43%
5. Dividend
5.1 Amount
No dividends for DXCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DEXCOM INC
NASDAQ:DXCM (12/20/2024, 8:06:14 PM)
After market: 80.04 0 (0%)80.04
+4.22 (+5.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change-3.47%
Ins Owners0.6%
Ins Owner Change-0.54%
Market Cap31.26B
Analysts84.38
Price Target97.85 (22.25%)
Short Float %2.17%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.38%
Min EPS beat(2)1.51%
Max EPS beat(2)9.24%
EPS beat(4)4
Avg EPS beat(4)10.13%
Min EPS beat(4)1.51%
Max EPS beat(4)16.17%
EPS beat(8)8
Avg EPS beat(8)21%
EPS beat(12)9
Avg EPS beat(12)9.01%
EPS beat(16)12
Avg EPS beat(16)13.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-0.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.58%
Revenue beat(12)4
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)0.18%
PT rev (1m)-0.92%
PT rev (3m)-3.78%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-7.56%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.08 | ||
| Fwd PE | 38.58 | ||
| P/S | 7.91 | ||
| P/FCF | 58.44 | ||
| P/OCF | 38.05 | ||
| P/B | 15.8 | ||
| P/tB | 16.91 | ||
| EV/EBITDA | 32.38 |
EPS(TTM)1.7
EY2.12%
EPS(NY)2.07
Fwd EY2.59%
FCF(TTM)1.37
FCFY1.71%
OCF(TTM)2.1
OCFY2.63%
SpS10.12
BVpS5.07
TBVpS4.73
PEG (NY)3.07
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 34.4% | ||
| ROCE | 13.95% | ||
| ROIC | 11.41% | ||
| ROICexc | 24.78% | ||
| ROICexgc | 26.39% | ||
| OM | 16.3% | ||
| PM (TTM) | 17.22% | ||
| GM | 62.1% | ||
| FCFM | 13.53% |
ROA(3y)6.46%
ROA(5y)7.28%
ROE(3y)17.6%
ROE(5y)18.87%
ROIC(3y)8.57%
ROIC(5y)7.84%
ROICexc(3y)23.92%
ROICexc(5y)24.92%
ROICexgc(3y)27.11%
ROICexgc(5y)27.14%
ROCE(3y)10.48%
ROCE(5y)9.58%
ROICexcg growth 3Y-0.44%
ROICexcg growth 5YN/A
ROICexc growth 3Y-2.54%
ROICexc growth 5YN/A
OM growth 3Y0.29%
OM growth 5YN/A
PM growth 3Y-19.38%
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y-0.22%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.67 | ||
| Debt/EBITDA | 2.91 | ||
| Cap/Depr | 134.98% | ||
| Cap/Sales | 7.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.88% | ||
| Profit Quality | 78.58% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 5.81 |
F-Score6
WACC8.74%
ROIC/WACC1.31
Cap/Depr(3y)247.59%
Cap/Depr(5y)281.79%
Cap/Sales(3y)11.65%
Cap/Sales(5y)11.5%
Profit Quality(3y)69.47%
Profit Quality(5y)78.35%
High Growth Momentum
Growth
EPS 1Y (TTM)25.93%
EPS 3Y25.17%
EPS 5Y83.54%
EPS Q2Q%-10%
EPS Next Y15.33%
EPS Next 2Y17.22%
EPS Next 3Y18.43%
EPS Next 5Y18.56%
Revenue 1Y (TTM)16.19%
Revenue growth 3Y23.42%
Revenue growth 5Y28.56%
Sales Q2Q%1.97%
Revenue Next Year11.48%
Revenue Next 2Y13.13%
Revenue Next 3Y13.9%
Revenue Next 5Y14.25%
EBIT growth 1Y23.94%
EBIT growth 3Y23.78%
EBIT growth 5YN/A
EBIT Next Year65.45%
EBIT Next 3Y34.13%
EBIT Next 5Y28.71%
FCF growth 1Y104.75%
FCF growth 3Y22.78%
FCF growth 5Y55.61%
OCF growth 1Y27.83%
OCF growth 3Y16.32%
OCF growth 5Y43.46%