NasdaqGS:DXCM

Stock Analysis Report

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Market Cap

US$44.1b

Last Updated

2021/07/30 01:10 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DXCM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

DXCM

2.5%

US Medical Equipment

0.8%

US Market


1 Year Return

5.7%

DXCM

30.5%

US Medical Equipment

37.5%

US Market

Return vs Industry: DXCM underperformed the US Medical Equipment industry which returned 28.7% over the past year.

Return vs Market: DXCM underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

DXCMIndustryMarket
7 Day1.1%2.5%0.8%
30 Day6.9%4.1%1.0%
90 Day18.1%6.0%3.8%
1 Year5.7%5.7%31.5%30.5%39.7%37.5%
3 Year265.7%265.7%74.2%70.2%64.4%54.1%
5 Year398.4%398.4%153.4%141.7%124.9%100.0%

Long-Term 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?

84.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DXCM ($456.05) is trading above our estimate of fair value ($303.3)

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 (84.8x) compared to the US Medical Equipment industry average (57.3x).

PE vs Market: DXCM is poor value based on its PE Ratio (84.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: DXCM is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: DXCM is overvalued based on its PB Ratio (23.2x) compared to the US Medical Equipment industry average (4.7x).


Future Growth

How is DexCom forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXCM's forecast earnings growth (25.8% per year) is above the savings rate (2%).

Earnings vs Market: DXCM's earnings (25.8% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: DXCM's revenue (17.5% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: DXCM's revenue (17.5% 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 low in 3 years time (19.2%).


Past Performance

How has DexCom performed over the past 5 years?

61.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXCM has a high level of non-cash earnings.

Growing Profit Margin: DXCM's current net profit margins (25.4%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: DXCM has become profitable over the past 5 years, growing earnings by 61.2% per year.

Accelerating Growth: DXCM's earnings growth over the past year (247.5%) exceeds its 5-year average (61.2% per year).

Earnings vs Industry: DXCM earnings growth over the past year (247.5%) exceeded the Medical Equipment industry 25%.


Return on Equity

High ROE: DXCM's Return on Equity (27%) is considered high.


Financial Health

How is DexCom's financial position?


Financial Position Analysis

Short Term Liabilities: DXCM's short term assets ($3.4B) exceed its short term liabilities ($604.1M).

Long Term Liabilities: DXCM's short term assets ($3.4B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: DXCM's debt to equity ratio (88.7%) is considered high.

Reducing Debt: DXCM's debt to equity ratio has increased from 0.8% to 88.7% over the past 5 years.

Debt Coverage: DXCM's debt is well covered by operating cash flow (29.7%).

Interest Coverage: DXCM's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

2.8yrs

Average management tenure


CEO

Kevin Sayer (63 yo)

6.5yrs

Tenure

US$13,804,156

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 ($USD13.80M) is about average for companies of similar size in the US market ($USD11.27M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DXCM's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: DXCM's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$44.103b
  • Shares outstanding: 96.71m
  • Website: https://www.dexcom.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/30 01:10
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.