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

Fundamentals

Reasonable 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


Market Performance


7 Day Return

-1.4%

DXCM

-1.6%

US Medical Equipment

0.07%

US Market


1 Year Return

15.1%

DXCM

13.8%

US Medical Equipment

8.9%

US Market

Return vs Industry: DXCM matched the US Medical Equipment industry which returned 13.8% over the past year.

Return vs Market: DXCM exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

DXCMIndustryMarket
7 Day-1.4%-1.6%0.07%
30 Day-2.3%-4.3%-0.3%
90 Day-1.4%-4.3%-1.6%
1 Year15.1%15.1%14.7%13.8%11.3%8.9%
3 Year88.1%88.1%70.7%65.6%46.3%36.8%
5 Year241.7%241.7%117.3%93.5%62.1%44.3%

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?

19.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DXCM ($150.89) is trading above our estimate of fair value ($114.02)

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


Price To Earnings Ratio

PE vs Industry: DXCM is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: DXCM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DXCM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DXCM is overvalued based on its PB Ratio (20x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXCM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: DXCM is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: DXCM's loss is forecast to worsen by 0% next year.

Revenue vs Market: DXCM's revenue (15.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: DXCM's revenue (15.3% 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 low in 3 years time (14.3%).


Next Steps

Past Performance

How has DexCom performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DXCM is unprofitable, and losses have increased over the past 5 years at a rate of -21.2% per year.

Accelerating Growth: Unable to compare DXCM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DXCM is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

High ROE: DXCM has a negative Return on Equity (-24.77%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DXCM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DXCM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is DexCom's financial position?


Financial Position Analysis

Short Term Liabilities: DXCM's short term assets ($1.7B) exceeds its short term liabilities ($288.2M)

Long Term Liabilities: DXCM's short term assets (1.7B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: DXCM's debt to equity ratio (150.3%) is considered high

Reducing Debt: DXCM's debt to equity ratio has increased from 5.8% to 150.3% over the past 5 years.


Balance Sheet

Inventory Level: DXCM has a low level of unsold assets or inventory.

Debt Coverage by Assets: DXCM's debt is covered by short term assets (assets are 1.685700x 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: Whilst unprofitable DXCM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DXCM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 82.9% per year.


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


Stability and Growth of Payments

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.

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

What is the CEO of DexCom's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Kevin Sayer (61yo)

4.8yrs

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 ($USD9.55M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

49yo

Average Age

Experienced Management: DXCM's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: DXCM's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: DXCM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$689,47512 Sep 19
Jeffrey Moy
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares4,601
Max PriceUS$150.11
SellUS$892,23912 Sep 19
Andrew Balo
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Clinical Affairs
Shares5,954
Max PriceUS$150.11
SellUS$1,751,23212 Sep 19
Quentin Blackford
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares11,686
Max PriceUS$150.11
SellUS$689,34712 Sep 19
Heather Ace
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares4,600
Max PriceUS$150.11
SellUS$875,59812 Sep 19
Donald Abbey
EntityIndividual
Shares5,843
Max PriceUS$150.11
SellUS$706,11812 Sep 19
Jacob Leach
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares4,712
Max PriceUS$150.11
SellUS$875,62012 Sep 19
Steven Pacelli
EntityIndividual
Role
Head of Corporate Development
Executive Vice President of Strategy & Corporate Development
Shares5,843
Max PriceUS$150.11
SellUS$373,89712 Sep 19
Patrick Murphy
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares2,495
Max PriceUS$150.11
SellUS$875,59412 Sep 19
Richard Doubleday
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares5,843
Max PriceUS$150.11
SellUS$2,146,26912 Sep 19
Kevin Sayer
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares14,322
Max PriceUS$150.11
SellUS$598,68527 Aug 19
Heather Ace
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares3,429
Max PriceUS$174.59
SellUS$1,093,35204 Jun 19
Donald Abbey
EntityIndividual
Shares9,030
Max PriceUS$121.08
SellUS$3,793,41813 Mar 19
Kevin Sayer
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares26,566
Max PriceUS$142.79
SellUS$1,221,58713 Mar 19
Jacob Leach
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares8,555
Max PriceUS$142.79
SellUS$1,543,72613 Mar 19
Steven Pacelli
EntityIndividual
Role
Head of Corporate Development
Executive Vice President of Strategy & Corporate Development
Shares10,811
Max PriceUS$142.79
SellUS$565,74313 Mar 19
Patrick Murphy
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares3,962
Max PriceUS$142.79
SellUS$1,218,16013 Mar 19
Jeffrey Moy
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares8,531
Max PriceUS$142.79
SellUS$1,543,72613 Mar 19
Richard Doubleday
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares10,811
Max PriceUS$142.79
SellUS$827,19513 Mar 19
Heather Ace
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares5,793
Max PriceUS$142.79
SellUS$1,092,78913 Mar 19
Donald Abbey
EntityIndividual
Shares7,653
Max PriceUS$142.79
SellUS$765,08113 Mar 19
Quentin Blackford
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,358
Max PriceUS$142.79
SellUS$1,558,86213 Mar 19
Andrew Balo
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Clinical Affairs
Shares10,917
Max PriceUS$142.79
SellUS$165,10127 Dec 18
Richard Doubleday
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares1,510
Max PriceUS$110.61

Ownership Breakdown


Management Team

  • Kevin Sayer (61yo)

    Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: US$9.55m
  • Andy Balo (71yo)

    Executive Vice President of Clinical Affairs

    • Tenure: 11.6yrs
    • Compensation: US$3.17m
  • Steve Pacelli (47yo)

    Executive Vice President of Strategy & Corporate Development

    • Tenure: 7.2yrs
    • Compensation: US$3.17m
  • Patrick Murphy (40yo)

    Senior VP

    • Tenure: 2.8yrs
  • Jeffrey Moy (59yo)

    Senior Vice President of Operations

    • Tenure: 0.08yrs
  • Rick Doubleday (56yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 4.8yrs
    • Compensation: US$3.21m
  • Jake Leach (41yo)

    Executive VP & CTO

    • Tenure: 1yrs
  • Quentin Blackford (40yo)

    Executive VP

    • Tenure: 2.1yrs
    • Compensation: US$3.39m
  • Heather Ace (49yo)

    Senior Vice President of Human Resources

    • Tenure: 3.3yrs
  • Sean Christensen

    Senior Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Mark Foletta (58yo)

    Lead Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$373.59k
  • Steve Altman (58yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$318.00k
  • Kevin Sayer (61yo)

    Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: US$9.55m
  • Jay Skyler (72yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$332.57k
  • Eric Topol (65yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$339.85k
  • Nick Augustinos (60yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$318.00k
  • Bridgette Heller (58yo)

    Director

    • Tenure: 0.08yrs
  • Barbara Kahn (66yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$318.00k
  • Richard Collins (62yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$318.00k

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$13.759b
  • Shares outstanding: 91.19m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:54
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.