Dexcom (DXCM) AI Stock Analysis

• Market Cap: $32.00B
• Dividend Yield: N/A
• Average Volume (3M): 4.80M
• Price to Earnings (P/E): 60.3
• Beta (1Y): 1.17
• Revenue Growth: 9.11%
• EPS Growth: -17.87%
• Country: US
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Devices
• EPS (TTM): 0.32
• Shares Outstanding: 392,107,500
• 10 Day Avg. Volume: 4,501,448
• 30 Day Avg. Volume: 4,798,028
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.24
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $97.69
• Price Target Upside: 14.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

Dexcom's overall stock score reflects its strong financial performance and positive technical analysis signals, despite valuation concerns and operational challenges. The earnings call and recent corporate events indicate strategic growth initiatives, while the high P/E ratio and absence of a dividend yield remain key considerations for potential investors.

Positive Factors

New Product Launch

DXCM's announced FDA approval of the G7 15 Day sensor for people over the age of 18 in the US represents an incremental positive vs. expectations.

Sales Performance

DexCom achieved a strong performance driven by U.S. sales and a record number of new patient additions.

Strategic Partnerships

A notable uptick in new starts from non-insulin dependent T2s occurred after an additional 5mn patients gained access, with more access expected following a new agreement with the third major PBM.

Negative Factors

Cost Challenges

DXCM lowered its FY25 GM guidance to 62% due to higher inventory replenishment costs.

Gross Margin Pressure

DexCom faces a significant short-term headwind in gross margins due to increased costs from rebuilding inventory and freight expenses.

Supply Chain Issues

Margins came in below consensus due to supply chain issues and increased shipping costs.

Dexcom Business Overview & Revenue Model

Company Description

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 provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include DexCom G6, an integrated CGM system for diabetes management; Dexcom Real-Time API, which enables invited third-party developers to integrate real-time CGM data into their digital health applications and devices; Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions; and Dexcom Share, a remote monitoring system. The company's products candidature comprises Dexcom G7, a next generation G7 CGM system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

How the Company Makes Money

Dexcom makes money primarily through the sale of its continuous glucose monitoring systems, which include sensors, transmitters, and receivers or compatible smart devices. The company's revenue model is based on a combination of direct sales to consumers and healthcare providers, as well as through partnerships with insurance companies and healthcare systems that facilitate the reimbursement processes for patients. Additionally, Dexcom generates revenue through ongoing replacement sales of sensors and transmitters, which need regular replenishment. Significant partnerships with technology firms, such as those integrating Dexcom's data into broader health management platforms, also enhance its market reach and contribute to its earnings. The company's focus on innovation and product improvement helps maintain its competitive advantage in the growing diabetes management market.

Dexcom Financial Statement Overview

Summary

Dexcom presents a strong financial position with consistent revenue growth, efficient cost management, and effective cash flow utilization. The company maintains a balanced capital structure with manageable leverage. However, slight pressures on Net Profit Margin and Free Cash Flow Growth suggest areas for improvement.

Income Statement

Dexcom has demonstrated strong revenue growth, with a 14.4% increase in TTM revenue compared to the previous year. The Gross Profit Margin remains robust at 59.4%, reflecting efficient cost management. However, the Net Profit Margin slightly decreased to 12.9% from 14.3% in the previous year, indicating some pressure on net profitability. The EBIT and EBITDA margins are healthy at 15.2% and 21.5%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a solid equity base, with a Debt-to-Equity Ratio of 1.11, indicating manageable leverage levels. The Return on Equity is strong at 23.6%, highlighting effective use of equity to generate profit. The Equity Ratio is 33.6%, suggesting a balanced capital structure, though slightly lower than the previous year, indicating increased liabilities.

Cash Flow

Dexcom exhibits strong cash flow management, with a Free Cash Flow of $575.2 million in TTM. The Free Cash Flow Growth Rate stands at -8.8%, indicating a slight decline compared to the previous period. The Operating Cash Flow to Net Income Ratio is robust at 1.8, demonstrating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.1, reflecting efficient cash utilization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.03B	3.62B	2.91B	2.45B	1.93B
	Gross Profit
2.47B	2.29B	1.88B	1.68B	1.28B
	EBIT
600.00M	597.70M	391.20M	175.40M	299.50M
	EBITDA
945.70M	916.70M	565.30M	377.50M	376.80M
	Net Income Common Stockholders
576.20M	541.50M	341.20M	154.70M	493.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.58B	2.72B	2.46B	2.73B	2.71B
	Total Assets
6.48B	6.26B	5.39B	4.86B	4.29B
	Total Debt
2.59B	2.59B	2.09B	1.82B	1.84B
	Net Debt
1.98B	2.03B	1.44B	769.20M	1.02B
	Total Liabilities
4.38B	4.20B	3.26B	2.61B	2.46B
	Stockholders Equity
2.10B	2.07B	2.13B	2.25B	1.83B
Cash Flow		Free Cash Flow
630.70M	511.90M	304.70M	53.30M	276.60M
	Operating Cash Flow
989.50M	748.50M	669.50M	442.50M	475.60M
	Investing Cash Flow
-207.50M	-507.20M	-521.50M	-216.10M	-1.02B
	Financing Cash Flow
-734.80M	-318.60M	-552.50M	10.40M	912.10M

Dexcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXCM, the sentiment is Positive. The current price of 85.34 is above the 20-day moving average (MA) of 72.27, above the 50-day MA of 72.34, and above the 200-day MA of 75.48, indicating a bullish trend. The MACD of 3.23 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 95.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXCM.

Dexcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXCM	76 Outperform	$32.00B	60.26	23.72%	―	9.11%	-17.87%
STE	76 Outperform	$21.86B	47.57	9.61%	1.00%	-0.17%	-17.34%
PODD	74 Outperform	$18.21B	44.72	43.03%	―	22.07%	101.95%
EW	71 Outperform	$43.88B	30.26	16.73%	―	-9.84%	-35.77%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
PHG	49 Neutral	$23.15B	―	-7.10%	―	-0.76%	-55.03%
TNDM	49 Neutral	$1.42B	―	-92.31%	―	27.65%	-28.22%

Dexcom Corporate Events

Dexcom Expands Board with New Director Appointment

On March 6, 2025, Dexcom’s Board of Directors expanded to eleven members with the appointment of Renée Galá as a director. Ms. Galá, recognized for her strategic and financial leadership in the life sciences sector, brings significant expertise to Dexcom, enhancing its potential to drive growth and create shareholder value. Her appointment reflects Dexcom’s strategic focus on expanding its influence in the metabolic health sector, leveraging her experience in global finance and operations.