NasdaqGS:DXCM

Stock Analysis Report

Executive Summary

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has DexCom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DXCM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

DXCM

-1.3%

US Medical Equipment

-1.1%

US Market


1 Year Return

112.8%

DXCM

19.6%

US Medical Equipment

17.9%

US Market

Return vs Industry: DXCM exceeded the US Medical Equipment industry which returned 19.6% over the past year.

Return vs Market: DXCM exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

DXCMIndustryMarket
7 Day2.6%-1.3%-1.1%
30 Day24.5%-0.03%1.4%
90 Day28.4%5.8%6.9%
1 Year112.8%112.8%20.6%19.6%20.3%17.9%
3 Year271.0%271.0%79.2%74.2%47.8%38.3%
5 Year379.5%379.5%115.2%92.6%71.9%53.0%

Price Volatility Vs. Market

How volatile is DexCom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DexCom undervalued compared to its fair value and its price relative to the market?

262.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DXCM ($291.25) is trading above our estimate of fair value ($96.81)

Significantly Below Fair Value: DXCM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DXCM is poor value based on its PE Ratio (262.4x) compared to the Medical Equipment industry average (46.6x).

PE vs Market: DXCM is poor value based on its PE Ratio (262.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: DXCM is poor value based on its PEG Ratio (7.6x)


Price to Book Ratio

PB vs Industry: DXCM is overvalued based on its PB Ratio (30.2x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is DexCom forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXCM's forecast earnings growth (34.4% per year) is above the savings rate (1.7%).

Earnings vs Market: DXCM's earnings (34.4% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DXCM's revenue (16.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DXCM's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DXCM's Return on Equity is forecast to be high in 3 years time (28%)


Next Steps

Past Performance

How has DexCom performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXCM has high quality earnings.

Growing Profit Margin: DXCM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DXCM has become profitable over the past 5 years, growing earnings by -9.2% per year.

Accelerating Growth: DXCM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DXCM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1.7%).


Return on Equity

High ROE: DXCM's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DexCom's financial position?


Financial Position Analysis

Short Term Liabilities: DXCM's short term assets ($2.0B) exceed its short term liabilities ($360.2M).

Long Term Liabilities: DXCM's short term assets ($2.0B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: DXCM's debt to equity ratio (120.1%) is considered high.

Reducing Debt: DXCM's debt to equity ratio has increased from 3.3% to 120.1% over the past 5 years.


Balance Sheet

Inventory Level: DXCM has a high level of physical assets or inventory.

Debt Coverage by Assets: DXCM's debt is covered by short term assets (assets are 1.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DXCM is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: DXCM is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is DexCom's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DXCM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DXCM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DXCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DXCM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DXCM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Kevin Sayer (61yo)

5.1yrs

Tenure

US$9,554,123

Compensation

Mr. Kevin Ronald Sayer has been Executive Chairman of DexCom, Inc. since July 30, 2018. Mr. Sayer has been the Chief Executive Officer of DexCom, Inc. since January 5, 2015 and as its President since June  ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD9.55M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Sayer
Executive Chairman5.1yrsUS$9.55m0.11% $29.5m
Quentin Blackford
Executive VP2.4yrsUS$3.39m0.00097% $258.8k
Steven Pacelli
Executive Vice President of Strategy & Corporate Development7.5yrsUS$3.17m0.041% $10.9m
Andrew Balo
Executive Vice President of Clinical Affairs11.9yrsUS$3.17m0.021% $5.5m
Richard Doubleday
Executive VP & Chief Commercial Officer5.1yrsUS$3.21m0.022% $6.0m
Jacob Leach
Executive VP & CTO1.3yrsno data0.11% $29.3m
Sean Christensen
Senior Investor Relations Manager0yrsno datano data
Patrick Murphy
Senior VP3.2yrsno data0.0048% $1.3m
Heather Ace
Senior Vice President of Human Resources3.6yrsno data0.017% $4.5m
Jeffrey Moy
Executive Vice President of Operations0.4yrsno data0.035% $9.3m

3.6yrs

Average Tenure

49yo

Average Age

Experienced Management: DXCM's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Sayer
Executive Chairman5.1yrsUS$9.55m0.11% $29.5m
Mark Foletta
Lead Independent Director4.3yrsUS$373.59k0.015% $4.1m
Steven Altman
Independent Director6.3yrsUS$318.00k0.051% $13.5m
Jay Skyler
Independent Director17.4yrsUS$332.57k0.044% $11.8m
Eric Topol
Independent Director10.6yrsUS$339.85k0.096% $25.7m
Nicholas Augustinos
Independent Director10.3yrsUS$318.00k0.016% $4.3m
Bridgette Heller
Director0.4yrsno datano data
Barbara Kahn
Independent Director8.8yrsUS$318.00k0.012% $3.3m
Richard Collins
Independent Director2.9yrsUS$318.00k0.010% $2.7m

6.3yrs

Average Tenure

61yo

Average Age

Experienced Board: DXCM's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

DexCom, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DexCom, Inc.
  • Ticker: DXCM
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$26.677b
  • Shares outstanding: 91.59m
  • Website: https://www.dexcom.com

Number of Employees


Location

  • DexCom, Inc.
  • 6340 Sequence Drive
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXCMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2005
DC4DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2005
DXCM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2005

Biography

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company offers its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include DexCom G6, a CGM system for diabetes management; DexCom G5 mobile CGM system to communicate directly to patient's mobile device; DexCom G4 PLATINUM system for continuous use by adults with diabetes; and DexCom Share, a remote monitoring system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop a series of next-generation CGM products; and a collaboration with Companion Medical, Inc. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was founded in 1999 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:18
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.