Dexcom (DXCM) AI Stock Analysis

• Market Cap: $33.20B
• Dividend Yield: N/A
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 63.6
• Beta (1Y): 1.10
• Revenue Growth: 9.11%
• EPS Growth: -17.87%
• Country: US
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): 0.32
• Shares Outstanding: 392,107,500
• 10 Day Avg. Volume: 4,318,328
• 30 Day Avg. Volume: 3,247,910
• PEG Ratio: -7.87
• Price to Book (P/B): 13.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.54
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 13.41
• Enterprise Value/Ebitda: 8.60
• 1Y Price Target: $99.04
• Price Target Upside: 16.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 78 Outperform
• Price Target: $100.00 ▲(17.59%Upside)

Dexcom's strong financial performance and strategic expansion into the type 2 diabetes market are significant strengths. However, valuation concerns due to a high P/E ratio and challenges such as declining gross margins and an FDA warning letter impact the overall score. The company's strategic initiatives and management confidence, as reflected in the share repurchase program, provide a balanced outlook.

Positive Factors

Financial Performance

The conversion to a 15-day product is expected to significantly drive profit margins by potentially lowering the cost of goods sold by about one-third.

Market Expansion

The expansion to cover Type 2 non-insulin patients represents a significant growth opportunity for DXCM.

Product Development

DXCM's 15-day product approval, with excellent accuracy data, minimizes the risk of an FDA recall or disruption.

Negative Factors

Market Share Risks

Key risks include higher share losses in type 1, lower share gains in type 2, price erosion, less margin benefit from 15-day wear, and potential sales force issues.

Pricing Pressure

Price erosion and less margin benefit from the 15-day wear are considered key risks for DXCM.

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 and related components. The company's revenue model is centered on the direct sale of its CGM devices, which include sensors, transmitters, and receivers, to individuals with diabetes. Additionally, Dexcom engages in partnerships with healthcare providers, insurance companies, and diabetes management platforms to expand the reach and accessibility of its products. A significant portion of its earnings stems from recurring sales of disposable sensors, which need to be replaced regularly, typically every 10 days. Dexcom also benefits from collaborations with technology companies to integrate its CGM systems with various digital health platforms, enhancing user experience and expanding its market presence.

Dexcom Financial Statement Overview

Summary

Dexcom demonstrates strong revenue growth and efficient cost management, with a robust gross profit margin and healthy EBIT and EBITDA margins. However, the slight decrease in net profit margin and free cash flow growth indicates some pressure on profitability and cash flow, suggesting 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.15B	4.03B	3.62B	2.91B	2.45B	1.93B
Gross Profit	2.46B	2.47B	2.29B	1.88B	1.68B	1.28B
EBITDA	889.80M	945.70M	916.70M	565.30M	377.50M	376.80M
Net Income	535.20M	576.20M	541.50M	341.20M	154.70M	493.60M
Balance Sheet
Total Assets	6.75B	6.48B	6.26B	5.39B	4.86B	4.29B
Cash, Cash Equivalents and Short-Term Investments	2.70B	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	4.49B	4.38B	4.20B	3.26B	2.61B	2.46B
Stockholders Equity	2.27B	2.10B	2.07B	2.13B	2.25B	1.83B
Cash Flow
Free Cash Flow	575.20M	630.70M	511.90M	304.70M	53.30M	276.60M
Operating Cash Flow	964.10M	989.50M	748.50M	669.50M	442.50M	475.60M
Investing Cash Flow	-182.10M	-207.50M	-507.20M	-521.50M	-216.10M	-1.02B
Financing Cash Flow	-727.00M	-734.80M	-318.60M	-552.50M	10.40M	912.10M

Dexcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.04
• 50DMA: Positive
• 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 Positive. The current price of 85.04 is above the 20-day moving average (MA) of 84.11, above the 50-day MA of 80.78, and above the 200-day MA of 77.12, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 75.67 is Neutral, 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
STE	80 Outperform	$23.65B	37.88	9.46%	0.95%	0.32%	64.36%
DXCM	78 Outperform	$33.20B	63.57	23.72%	―	9.11%	-17.87%
PODD	76 Outperform	$21.55B	55.76	37.92%	―	23.49%	71.25%
EW	64 Neutral	$45.15B	51.55	16.73%	―	-9.84%	-35.77%
PHG	51 Neutral	$22.95B	―	-7.10%	3.70%	-0.76%	-55.03%
TNDM	50 Neutral	$1.29B	―	-92.31%	―	27.65%	-28.22%
Sector *	46 Neutral	C$189.62M	-4.26	-8.56%	3.09%	13.57%	-1.98%

Dexcom Corporate Events

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.

Dexcom Stockholders Approve Equity Plan Amendments

On May 8, 2025, Dexcom‘s stockholders approved amendments to the 2015 Equity Incentive Plan and the Employee Stock Purchase Plan, increasing the shares reserved for issuance by 3.4 million and 8 million respectively. Additionally, the board size was reduced to nine directors, and various proposals including the election of directors, ratification of Deloitte & Touche LLP as auditors, and executive compensation were approved.