Dexcom (DXCM) AI Stock Analysis

• Market Cap: $31.44B
• Dividend Yield: N/A
• Average Volume (3M): 3.43M
• Price to Earnings (P/E): 56.1
• Beta (1Y): 1.10
• Revenue Growth: 9.30%
• EPS Growth: -14.95%
• Country: US
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): 0.48
• Shares Outstanding: 392,155,270
• 10 Day Avg. Volume: 4,970,398
• 30 Day Avg. Volume: 3,426,486
• PEG Ratio: 39.32
• Price to Book (P/B): 14.97
• Price to Sales (P/S): 7.80
• P/FCF Ratio: 49.89
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 8.20
• Enterprise Value/Gross Profit: 13.96
• Enterprise Value/Ebitda: 33.95
• 1Y Price Target: $100.38
• Price Target Upside: 25.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 75 Outperform
• Price Target: $91.00 ▲(13.51% Upside)

Dexcom's overall stock score reflects strong financial performance and positive earnings call sentiment with a promising outlook. However, technical analysis and valuation suggest some caution due to mixed indicators and high valuation metrics.

Positive Factors

Earnings

DXCM reported a solid top-line beat in the second quarter with sales of $1.16 billion, exceeding consensus expectations by 3%.

Leadership

The appointment of Jake Leach as CEO is seen as a strategic move due to his wealth of industry experience and deep understanding of DXCM.

Product Launch

The upcoming launch of DXCM's G7 15-day sensor is expected to be a significant catalyst for growth.

Negative Factors

Guidance

The updated guidance is slightly below investor expectations, seen as conservative.

Market Share

DXCM doesn’t expect to lose US patient share next year despite Libre expecting to gain US revenue share.

Stock Performance

Despite a solid $33 million beat in the second quarter, the stock traded off 10% post earnings.

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 generates revenue primarily through the sale of its continuous glucose monitoring systems, including sensors, transmitters, and displays. The majority of its income comes from the sale of sensors, which are consumable devices that patients use on a regular basis. In addition to direct sales, Dexcom also benefits from partnerships with major insulin manufacturers and healthcare providers, which can include collaborations for integrated diabetes management solutions. The company has established reimbursement agreements with various insurance providers, enhancing patient access to its products and driving sales growth. Furthermore, ongoing innovation and product improvements contribute to maintaining a competitive edge in the diabetes care market, further solidifying its revenue streams.

Dexcom Financial Statement Overview

Summary

Dexcom's financial performance is robust, with significant revenue growth and strong profitability margins. The balance sheet is stable despite moderate leverage, and cash flows are efficient, although there is a recent slowdown in free cash flow growth.

Income Statement

Dexcom shows robust revenue growth with a TTM revenue of $4.3 billion, up from $3.62 billion in 2023, indicating strong market demand. The gross profit margin is healthy at 58.7% for the TTM, and the net profit margin is solid at 13.3%, reflecting effective cost management. EBIT and EBITDA margins are also strong, signaling operational efficiency.

Balance Sheet

The debt-to-equity ratio is 0.98, indicating moderate leverage. ROE stands at 22.2% TTM, reflecting good profitability relative to equity. The equity ratio is 35.1%, showing a balanced capital structure but with room for improvement in equity financing.

Cash Flow

Operating cash flow is robust at $987.7 million TTM, with a free cash flow to net income ratio of 1.00, indicating efficient cash conversion. However, the free cash flow growth rate is negative at -9.5% from 2024, suggesting challenges in sustaining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.30B	4.03B	3.62B	2.91B	2.45B	1.93B
Gross Profit	2.53B	2.44B	2.29B	1.88B	1.68B	1.28B
EBITDA	1.04B	945.70M	916.70M	565.30M	377.50M	376.80M
Net Income	571.50M	576.20M	541.50M	341.20M	216.90M	493.60M
Balance Sheet
Total Assets	7.33B	6.48B	6.26B	5.39B	4.86B	4.29B
Cash, Cash Equivalents and Short-Term Investments	2.93B	2.58B	2.72B	2.46B	2.73B	2.71B
Total Debt	2.58B	2.59B	2.59B	2.09B	1.82B	1.84B
Total Liabilities	4.75B	4.38B	4.20B	3.26B	2.61B	2.46B
Stockholders Equity	2.57B	2.10B	2.07B	2.13B	2.25B	1.83B
Cash Flow
Free Cash Flow	570.80M	630.70M	511.90M	304.70M	53.30M	276.60M
Operating Cash Flow	987.70M	989.50M	748.50M	669.50M	442.50M	475.60M
Investing Cash Flow	-56.80M	-207.50M	-507.20M	-521.50M	-216.10M	-1.02B
Financing Cash Flow	-727.30M	-734.80M	-318.60M	-552.50M	10.40M	912.10M

Dexcom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXCM, the sentiment is Neutral. The current price of 80.17 is below the 20-day moving average (MA) of 82.64, below the 50-day MA of 83.57, and above the 200-day MA of 79.40, indicating a neutral trend. The MACD of -1.78 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 30.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DXCM.

Dexcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	80 Outperform	$23.80B	36.63	9.73%	0.94%	2.47%	63.68%
PODD	77 Outperform	$21.80B	94.23	19.18%	―	25.99%	-40.46%
EW	76 Outperform	$45.17B	52.52	15.71%	―	-5.23%	-39.83%
DXCM	75 Outperform	$31.44B	56.13	22.83%	―	9.30%	-14.95%
Sector *	63 Neutral	€5.98B	18.21	-2.83%	2.08%	0.47%	-41.00%
PHG	56 Neutral	$25.54B	―	-7.10%	3.28%	-0.76%	-55.03%
TNDM	46 Neutral	$750.36M	―	-111.91%	―	25.84%	-47.67%

Dexcom Corporate Events

Dexcom Announces Leadership Transition with New CEO

Dexcom announced a leadership transition with Kevin R. Sayer retiring as CEO effective January 1, 2026, and Jacob S. Leach being appointed as the new CEO. The company reported a 15% year-over-year revenue growth in the second quarter of 2025, reaching $1.157 billion, and received FDA clearance for its Dexcom G7 15 Day CGM System, showcasing its continued innovation and strong market position.

The most recent analyst rating on (DXCM) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Dexcom stock, see the DXCM Stock Forecast page.

Dexcom Promotes Jacob S. Leach to President and COO

On May 9, 2025, Dexcom announced the promotion of Jacob S. Leach to President and Chief Operating Officer, effective immediately. Leach, who has been with the company for over 21 years, will now oversee corporate development and strategy efforts in addition to his existing responsibilities. This move is expected to strengthen Dexcom’s ability to innovate and achieve its goals in the metabolic health sector, benefiting customers, shareholders, and communities.

The most recent analyst rating on (DXCM) stock is a Buy with a $132.00 price target. To see the full list of analyst forecasts on Dexcom stock, see the DXCM Stock Forecast page.