DEXCOM INC (DXCM)
US2521311074 - Common Stock
Taking everything into account, DXCM scores 6 out of 10 in our fundamental rating. DXCM was compared to 188 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes DXCM very considerable 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.
In the past 5 years DXCM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DXCM (10.71%) is better than 92.51% of its industry peers.
With an excellent Return On Equity value of 34.40%, DXCM belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
DXCM has a better Return On Invested Capital (11.41%) than 93.05% of its industry peers.
DXCM had an Average Return On Invested Capital over the past 3 years of 8.57%. This is in line with the industry average of 8.23%.
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
The Profit Margin of DXCM (17.22%) is better than 92.51% 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.
DXCM has a Gross Margin of 62.10%. This is in the better half of the industry: DXCM outperforms 63.10% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DXCM is still creating some value.
The number of shares outstanding for DXCM has been reduced compared to 1 year ago.
Compared to 5 years ago, DXCM has more shares outstanding
The debt/assets ratio for DXCM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.82 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM has a better Altman-Z score (5.82) than 81.28% 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.
DXCM has a Debt to FCF ratio of 4.67. This is amongst the best in the industry. DXCM outperforms 82.35% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that DXCM has dependencies on debt financing.
DXCM has a worse Debt to Equity ratio (1.26) than 80.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.33
WACC8.55%
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 42.78% of its industry peers.
A Quick Ratio of 2.12 indicates that DXCM has no problem at all paying its short term obligations.
With a Quick ratio value of 2.12, DXCM perfoms like the industry average, outperforming 50.27% of the companies in the same 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.
The Earnings Per Share has been growing by 83.54% on average over the past years. This is a very strong growth
DXCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.19%.
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
Based on estimates for the next years, DXCM will show a very strong growth in Earnings Per Share. The EPS will grow by 21.67% on average per year.
The Revenue is expected to grow by 17.04% on average over the next years. This is quite good.
EPS Next Y15.3%
EPS Next 2Y17.15%
EPS Next 3Y18.6%
EPS Next 5Y21.67%
Revenue Next Year11.48%
Revenue Next 2Y13.14%
Revenue Next 3Y13.9%
Revenue Next 5Y17.04%
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
The Price/Earnings ratio is 44.64, which means the current valuation is very expensive for DXCM.
DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 68.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. DXCM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 36.62, DXCM can be considered very expensive at the moment.
71.12% 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 (23.40), we can say DXCM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.64 | ||
| Fwd PE | 36.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 70.59% of the companies in the same industry.
DXCM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 75.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.4 | ||
| EV/EBITDA | 32.41 |
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.
The excellent profitability rating of DXCM may justify a higher PE ratio.
DXCM's earnings are expected to grow with 18.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)0.53
EPS Next 2Y17.15%
EPS Next 3Y18.6%
5. Dividend
5.1 Amount
DXCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DEXCOM INC
NASDAQ:DXCM (11/15/2024, 8:04:07 PM)
After market: 75.7212 -0.16 (-0.21%)75.88
+1.2 (+1.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.64 | ||
| Fwd PE | 36.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.92
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 34.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.3% | ||
| PM (TTM) | 17.22% | ||
| GM | 62.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.93%
EPS 3Y25.17%
EPS 5Y
EPS Q2Q%
EPS Next Y15.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.19%
Revenue growth 3Y23.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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