Dexcom (DXCM) AI Stock Analysis

• Market Cap: $29.54B
• Dividend Yield: N/A
• Average Volume (3M): 3.90M
• Price to Earnings (P/E): 52.7
• Beta (1Y): 1.10
• Revenue Growth: 9.30%
• EPS Growth: -14.95%
• Country: US
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): 0.48
• Shares Outstanding: 392,155,270
• 10 Day Avg. Volume: 4,081,035
• 30 Day Avg. Volume: 3,898,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 8.20
• Enterprise Value/Gross Profit: 13.96
• Enterprise Value/Ebitda: 33.95
• 1Y Price Target: $101.11
• Price Target Upside: 34.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 68 Neutral
• Price Target: $83.00 ▲(10.17% Upside)

Dexcom's strong financial performance and positive earnings call are significant strengths, driving the overall score. However, the high valuation and bearish technical indicators present risks. The company's strategic expansions and product innovations position it well for future growth, but current market conditions and valuation concerns temper the outlook.

Positive Factors

Earnings

DXCM reported 2Q25 sales of $1.16bn, exceeding consensus expectations by 3%.

Product Launch

DXCM's launch of the 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.

Stock Performance

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

Dexcom Business Overview & Revenue Model

Company Description

Dexcom, Inc. is a global leader in continuous glucose monitoring (CGM) technology, primarily serving individuals with diabetes. Founded in 1999 and headquartered in San Diego, California, Dexcom develops and manufactures state-of-the-art CGM systems that provide real-time glucose readings, allowing users to manage their diabetes more effectively. The company's core products include the Dexcom G6 and G7 CGM systems, which are designed to provide accurate, timely glucose data to patients and healthcare providers, facilitating better decision-making regarding insulin dosing and lifestyle management.

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 demonstrates strong financial performance with robust revenue growth and solid profitability margins. The balance sheet is stable with moderate leverage, and cash flows are efficient despite a recent slowdown in free cash flow growth. Opportunities exist for further improvement in equity financing and 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	4.93B	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	2.15B	2.16B	1.84B
Total Liabilities	4.75B	4.38B	4.20B	3.26B	2.89B	2.46B
Stockholders Equity	2.57B	2.10B	2.07B	2.13B	2.04B	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: Negative
• Last Price: 75.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXCM, the sentiment is Negative. The current price of 75.34 is below the 20-day moving average (MA) of 78.37, below the 50-day MA of 82.20, and below the 200-day MA of 79.91, indicating a bearish trend. The MACD of -1.70 indicates Positive momentum. The RSI at 36.43 is Neutral, neither overbought nor oversold. The STOCH value of 15.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXCM.

Dexcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	79 Outperform	$24.14B	37.16	9.73%	0.93%	2.47%	63.68%
SNN	78 Outperform	$16.30B	33.13	9.20%	2.00%	5.78%	61.52%
EW	78 Outperform	$47.75B	55.53	15.71%	―	-5.23%	-39.83%
PODD	76 Outperform	$23.93B	103.44	19.18%	―	25.99%	-40.46%
DXCM	68 Neutral	$29.54B	52.74	22.83%	―	9.30%	-14.95%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
TNDM	49 Neutral	$845.29M	―	-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.