DEXCOM INC (DXCM) Fundamental Analysis & Valuation
NASDAQ:DXCM • US2521311074
Current stock price
63.21 USD
+0.99 (+1.59%)
At close:
62.77 USD
-0.44 (-0.7%)
Pre-Market:
This DXCM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DXCM Profitability Analysis
1.1 Basic Checks
- In the past year DXCM was profitable.
- DXCM had a positive operating cash flow in the past year.
- In the past 5 years DXCM has always been profitable.
- In the past 5 years DXCM always reported a positive cash flow from operatings.
1.2 Ratios
- DXCM has a better Return On Assets (13.19%) than 94.15% of its industry peers.
- DXCM has a better Return On Equity (30.46%) than 97.34% of its industry peers.
- DXCM has a Return On Invested Capital of 18.92%. This is amongst the best in the industry. DXCM outperforms 96.81% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DXCM is significantly above the industry average of 9.40%.
- The last Return On Invested Capital (18.92%) for DXCM is above the 3 year average (14.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.19% | ||
| ROE | 30.46% | ||
| ROIC | 18.92% |
ROA(3y)10.24%
ROA(5y)8.29%
ROE(3y)28.01%
ROE(5y)22.13%
ROIC(3y)14.59%
ROIC(5y)11.66%
1.3 Margins
- The Profit Margin of DXCM (17.94%) is better than 93.62% 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 21.55%, DXCM belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
- DXCM's Operating Margin has improved in the last couple of years.
- DXCM has a Gross Margin of 62.09%. This is in the better half of the industry: DXCM outperforms 65.96% of its industry peers.
- DXCM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.55% | ||
| PM (TTM) | 17.94% | ||
| GM | 62.09% |
OM growth 3Y15.68%
OM growth 5Y5.09%
PM growth 3Y15.23%
PM growth 5Y-8.86%
GM growth 3Y-1.61%
GM growth 5Y-1.72%
2. DXCM Health Analysis
2.1 Basic Checks
- DXCM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, DXCM has less shares outstanding
- The number of shares outstanding for DXCM remains at a similar level compared to 5 years ago.
- DXCM has a better debt/assets ratio than last year.
2.2 Solvency
- DXCM has an Altman-Z score of 6.21. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
- DXCM has a Altman-Z score of 6.21. This is amongst the best in the industry. DXCM outperforms 81.91% of its industry peers.
- DXCM has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.20, DXCM belongs to the best of the industry, outperforming 89.89% 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.
- Looking at the Debt to Equity ratio, with a value of 0.47, DXCM is in line with its industry, outperforming 43.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 6.21 |
ROIC/WACC2.26
WACC8.37%
2.3 Liquidity
- DXCM has a Current Ratio of 1.88. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
- DXCM has a Current ratio of 1.88. This is in the lower half of the industry: DXCM underperforms 65.96% of its industry peers.
- DXCM has a Quick Ratio of 1.59. This is a normal value and indicates that DXCM is financially healthy and should not expect problems in meeting its short term obligations.
- DXCM has a Quick ratio (1.59) which is in line with 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 | 1.88 | ||
| Quick Ratio | 1.59 |
3. DXCM Growth Analysis
3.1 Past
- DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.73%, which is quite good.
- DXCM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.29% yearly.
- The Revenue has grown by 15.60% in the past year. This is quite good.
- Measured over the past years, DXCM shows a quite strong growth in Revenue. The Revenue has been growing by 19.33% on average per year.
EPS 1Y (TTM)12.73%
EPS 3Y28.82%
EPS 5Y19.29%
EPS Q2Q%0%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y17.01%
Revenue growth 5Y19.33%
Sales Q2Q%13.12%
3.2 Future
- The Earnings Per Share is expected to grow by 21.71% 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 11.94% yearly.
EPS Next Y36.69%
EPS Next 2Y27.75%
EPS Next 3Y24.99%
EPS Next 5Y21.71%
Revenue Next Year12.62%
Revenue Next 2Y12.47%
Revenue Next 3Y12.38%
Revenue Next 5Y11.94%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. DXCM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.98, 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 70.74% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.21, DXCM is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 24.86, the valuation of DXCM can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DXCM indicates a somewhat cheap valuation: DXCM is cheaper than 75.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DXCM to the average of the S&P500 Index (23.13), we can say DXCM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 24.86 |
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 75.00% of the companies listed in the same industry.
- 84.57% 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 | 22.58 | ||
| EV/EBITDA | 17.94 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of DXCM may justify a higher PE ratio.
- A more expensive valuation may be justified as DXCM's earnings are expected to grow with 24.99% in the coming years.
PEG (NY)0.93
PEG (5Y)1.76
EPS Next 2Y27.75%
EPS Next 3Y24.99%
5. DXCM Dividend Analysis
5.1 Amount
- No dividends for DXCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DXCM Fundamentals: All Metrics, Ratios and Statistics
63.21
+0.99 (+1.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-30 2026-04-30
Inst Owners100.29%
Inst Owner Change0.01%
Ins Owners0.2%
Ins Owner Change9.44%
Market Cap24.33B
Revenue(TTM)4.66B
Net Income(TTM)836.30M
Analysts84.86
Price Target88.6 (40.17%)
Short Float %4.26%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-13.4%
Min EPS beat(2)-32.12%
Max EPS beat(2)5.32%
EPS beat(4)2
Avg EPS beat(4)-6.03%
Min EPS beat(4)-32.12%
Max EPS beat(4)6.77%
EPS beat(8)5
Avg EPS beat(8)-1.11%
EPS beat(12)9
Avg EPS beat(12)9.15%
EPS beat(16)11
Avg EPS beat(16)5.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.53%
PT rev (1m)0.3%
PT rev (3m)0.07%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 24.86 | ||
| P/S | 5.22 | ||
| P/FCF | 22.58 | ||
| P/OCF | 16.89 | ||
| P/B | 8.86 | ||
| P/tB | 9.18 | ||
| EV/EBITDA | 17.94 |
EPS(TTM)1.86
EY2.94%
EPS(NY)2.54
Fwd EY4.02%
FCF(TTM)2.8
FCFY4.43%
OCF(TTM)3.74
OCFY5.92%
SpS12.11
BVpS7.14
TBVpS6.89
PEG (NY)0.93
PEG (5Y)1.76
Graham Number17.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.19% | ||
| ROE | 30.46% | ||
| ROCE | 23.93% | ||
| ROIC | 18.92% | ||
| ROICexc | 36.12% | ||
| ROICexgc | 37.75% | ||
| OM | 21.55% | ||
| PM (TTM) | 17.94% | ||
| GM | 62.09% | ||
| FCFM | 23.11% |
ROA(3y)10.24%
ROA(5y)8.29%
ROE(3y)28.01%
ROE(5y)22.13%
ROIC(3y)14.59%
ROIC(5y)11.66%
ROICexc(3y)37.89%
ROICexc(5y)31.72%
ROICexgc(3y)41.79%
ROICexgc(5y)35.48%
ROCE(3y)18.46%
ROCE(5y)14.75%
ROICexgc growth 3Y1.89%
ROICexgc growth 5Y6.96%
ROICexc growth 3Y7.33%
ROICexc growth 5Y6.44%
OM growth 3Y15.68%
OM growth 5Y5.09%
PM growth 3Y15.23%
PM growth 5Y-8.86%
GM growth 3Y-1.61%
GM growth 5Y-1.72%
F-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 144.36% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 88.12 | ||
| Cash Conversion | 114.67% | ||
| Profit Quality | 128.81% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 6.21 |
F-Score8
WACC8.37%
ROIC/WACC2.26
Cap/Depr(3y)145.46%
Cap/Depr(5y)210.39%
Cap/Sales(3y)7.74%
Cap/Sales(5y)10.33%
Profit Quality(3y)110.93%
Profit Quality(5y)89.33%
High Growth Momentum
Growth
EPS 1Y (TTM)12.73%
EPS 3Y28.82%
EPS 5Y19.29%
EPS Q2Q%0%
EPS Next Y36.69%
EPS Next 2Y27.75%
EPS Next 3Y24.99%
EPS Next 5Y21.71%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y17.01%
Revenue growth 5Y19.33%
Sales Q2Q%13.12%
Revenue Next Year12.62%
Revenue Next 2Y12.47%
Revenue Next 3Y12.38%
Revenue Next 5Y11.94%
EBIT growth 1Y53.73%
EBIT growth 3Y35.36%
EBIT growth 5Y25.41%
EBIT Next Year68.67%
EBIT Next 3Y32.44%
EBIT Next 5Y25.77%
FCF growth 1Y70.79%
FCF growth 3Y52.34%
FCF growth 5Y31.25%
OCF growth 1Y45.6%
OCF growth 3Y29.1%
OCF growth 5Y24.81%
DEXCOM INC / DXCM Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for DEXCOM INC?
ChartMill assigns a fundamental rating of 7 / 10 to DXCM.
What is the valuation status of DEXCOM INC (DXCM) stock?
ChartMill assigns a valuation rating of 6 / 10 to DEXCOM INC (DXCM). This can be considered as Fairly Valued.
What is the profitability of DXCM stock?
DEXCOM INC (DXCM) has a profitability rating of 8 / 10.
How financially healthy is DEXCOM INC?
The financial health rating of DEXCOM INC (DXCM) is 8 / 10.