DEXCOM INC (DXCM) Stock Fundamental Analysis
NASDAQ:DXCM - Nasdaq - US2521311074 - Common Stock
Taking everything into account, DXCM scores 6 out of 10 in our fundamental rating. DXCM was compared to 191 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 not priced too expensively while it is growing strongly. 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.
In the past year DXCM had a positive cash flow from operations.
DXCM had positive earnings in each of the past 5 years.
Each year in the past 5 years DXCM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.71%, DXCM belongs to the top of the industry, outperforming 92.11% 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 97.89% of its industry peers.
DXCM's Return On Invested Capital of 11.41% is amongst the best of the industry. DXCM outperforms 93.16% 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 8.08%.
The last Return On Invested Capital (11.41%) for DXCM is above the 3 year average (8.57%), which is a sign of increasing profitability.
| 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 better Profit Margin (17.22%) than 92.11% of its industry peers.
DXCM's Profit Margin has declined in the last couple of years.
DXCM's Operating Margin of 16.30% is amongst the best of the industry. DXCM outperforms 88.42% of its industry peers.
In the last couple of years the Operating Margin of DXCM has remained more or less at the same level.
DXCM's Gross Margin of 62.10% is fine compared to the rest of the industry. DXCM outperforms 64.21% 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 | 16.3% | ||
| 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
DXCM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DXCM has less shares outstanding
Compared to 5 years ago, DXCM has more shares outstanding
Compared to 1 year ago, DXCM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.27 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM has a Altman-Z score of 6.27. This is amongst the best in the industry. DXCM outperforms 81.58% 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.
With an excellent Debt to FCF ratio value of 4.67, DXCM belongs to the best of the industry, outperforming 81.58% 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.
With a Debt to Equity ratio value of 1.26, DXCM is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 6.27 |
ROIC/WACC1.31
WACC8.68%
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 has a Current ratio (2.46) which is comparable to the rest of the industry.
DXCM has a Quick Ratio of 2.12. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
DXCM has a Quick ratio of 2.12. This is comparable to the rest of the industry: DXCM outperforms 53.16% of its industry peers.
| 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.
Measured over the past years, DXCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.54% on average per year.
The Revenue has grown by 16.19% in the past year. This is quite good.
DXCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.56% yearly.
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
The Earnings Per Share is expected to grow by 18.56% on average over the next years. This is quite good.
DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.25% yearly.
EPS Next Y15.31%
EPS Next 2Y17.03%
EPS Next 3Y18.59%
EPS Next 5Y18.56%
Revenue Next Year11.48%
Revenue Next 2Y13.09%
Revenue Next 3Y13.79%
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.
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. Valuation
4.1 Price/Earnings Ratio
DXCM is valuated quite expensively with a Price/Earnings ratio of 49.64.
DXCM's Price/Earnings ratio is a bit cheaper when compared to the industry. DXCM is cheaper than 67.89% of the companies in the same industry.
DXCM is valuated expensively when we compare the Price/Earnings ratio to 27.94, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 40.80, the valuation of DXCM can be described as expensive.
71.05% of the companies in the same industry are more expensive than DXCM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, DXCM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.64 | ||
| Fwd PE | 40.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXCM is valued a bit cheaper than 68.95% 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 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.61 | ||
| EV/EBITDA | 36.28 |
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 18.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.24
PEG (5Y)0.59
EPS Next 2Y17.03%
EPS Next 3Y18.59%
5. Dividend
5.1 Amount
No dividends for DXCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DEXCOM INC
NASDAQ:DXCM (1/17/2025, 8:00:01 PM)
After market: 84 -0.38 (-0.45%)84.38
-0.46 (-0.54%)
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-0.05%
Ins Owners0.33%
Ins Owner Change-0.63%
Market Cap32.96B
Analysts84.38
Price Target100.36 (18.94%)
Short Float %2.26%
Short Ratio2.46
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)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)2.56%
PT rev (3m)1.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.34%
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 | 49.64 | ||
| Fwd PE | 40.8 | ||
| P/S | 8.34 | ||
| P/FCF | 61.61 | ||
| P/OCF | 40.11 | ||
| P/B | 16.65 | ||
| P/tB | 17.83 | ||
| EV/EBITDA | 36.28 |
EPS(TTM)1.7
EY2.01%
EPS(NY)2.07
Fwd EY2.45%
FCF(TTM)1.37
FCFY1.62%
OCF(TTM)2.1
OCFY2.49%
SpS10.12
BVpS5.07
TBVpS4.73
PEG (NY)3.24
PEG (5Y)0.59
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 | 6.27 |
F-Score6
WACC8.68%
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 Y15.31%
EPS Next 2Y17.03%
EPS Next 3Y18.59%
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 2Y13.09%
Revenue Next 3Y13.79%
Revenue Next 5Y14.25%
EBIT growth 1Y23.94%
EBIT growth 3Y23.78%
EBIT growth 5YN/A
EBIT Next Year63.71%
EBIT Next 3Y34.02%
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%