Dexcom (DXCM) AI Stock Analysis

• Market Cap: $23.57B
• Dividend Yield: N/A
• Average Volume (3M): 5.88M
• Price to Earnings (P/E): 33.6
• Beta (1Y): 1.20
• Revenue Growth: 14.21%
• EPS Growth: 5.66%
• Country: US
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.61
• Shares Outstanding: 390,016,270
• 10 Day Avg. Volume: 6,904,802
• 30 Day Avg. Volume: 5,878,225
• 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: 1.13
• Enterprise Value/Revenue: 5.91
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 21.90
• 1Y Price Target: $88.58
• Price Target Upside: 46.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 69 Neutral
• Price Target: $64.00 ▲(5.91% Upside)

Dexcom's overall stock score is driven by its strong financial performance and positive earnings call sentiment, reflecting robust revenue growth and strategic advancements. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. Addressing gross margin pressures and operational challenges could enhance future performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability.

Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and debt management for future growth.

Product Innovation

Innovative products like Smart Basal strengthen Dexcom's competitive edge and expand its market in diabetes management.

Negative Factors

Gross Margin Pressure

Decreasing gross margins could impact profitability, necessitating cost management to maintain financial health.

Quality Issues

Quality issues can affect brand reputation and customer retention, potentially hindering new customer acquisition.

Equity Ratio

A moderate equity ratio indicates reliance on debt, which can limit financial flexibility and increase risk during downturns.

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 exhibits a robust financial profile with consistent revenue growth, strong profitability, and effective cash flow management. The company's leverage is under control, and its return on equity is commendable. While the financial statements are generally positive, focusing on improving gross profit margins and equity ratios could further strengthen its financial standing.

Income Statement

Dexcom's income statement shows strong revenue growth with a 5% increase in the TTM period. The company maintains healthy margins, with a gross profit margin of 59% and a net profit margin of 15.96%. EBIT and EBITDA margins are also robust at 13.75% and 23.12%, respectively. The consistent growth trajectory and profitability indicate a well-managed income statement, though slight declines in gross profit margin over the years suggest room for improvement.

Balance Sheet

Dexcom's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.92, indicating manageable leverage. The return on equity is strong at 29.82%, showcasing effective utilization of shareholder funds. However, the equity ratio of 36.35% suggests a moderate reliance on debt financing. Overall, the balance sheet is solid but could benefit from a higher equity ratio to enhance financial stability.

Cash Flow

The cash flow statement highlights impressive free cash flow growth of 86.04% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 2.01 and free cash flow to net income ratio of 0.73 demonstrate efficient cash conversion. While the cash flow metrics are strong, maintaining this growth trajectory will be crucial for sustaining financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.52B	4.03B	3.62B	2.91B	2.45B	1.93B
Gross Profit	2.67B	2.44B	2.29B	1.88B	1.68B	1.28B
EBITDA	1.22B	945.70M	916.70M	565.30M	377.50M	376.80M
Net Income	720.70M	576.20M	541.50M	341.20M	216.90M	493.60M
Balance Sheet
Total Assets	7.50B	6.48B	6.26B	5.39B	4.93B	4.29B
Cash, Cash Equivalents and Short-Term Investments	3.32B	2.58B	2.72B	2.46B	2.73B	2.71B
Total Debt	2.52B	2.59B	2.59B	2.15B	2.16B	1.84B
Total Liabilities	4.77B	4.38B	4.20B	3.26B	2.89B	2.46B
Stockholders Equity	2.73B	2.10B	2.07B	2.13B	2.04B	1.83B
Cash Flow
Free Cash Flow	1.06B	630.70M	511.90M	304.70M	53.30M	276.60M
Operating Cash Flow	1.45B	989.50M	748.50M	669.50M	442.50M	475.60M
Investing Cash Flow	-74.30M	-207.50M	-507.20M	-521.50M	-216.10M	-1.02B
Financing Cash Flow	-165.80M	-734.80M	-318.60M	-552.50M	10.40M	912.10M

Dexcom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 60.43 is below the 20-day moving average (MA) of 67.10, below the 50-day MA of 70.64, and below the 200-day MA of 78.14, indicating a bearish trend. The MACD of -1.66 indicates Positive momentum. The RSI at 32.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, 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
EW	―	$48.77B	35.42	―	―	0.19%	65.34%
SNN	―	$15.53B	32.53	9.20%	2.04%	5.78%	61.52%
STE	―	$23.37B	35.98	9.73%	0.99%	2.47%	63.68%
PODD	―	$22.44B	97.01	19.18%	―	25.99%	-40.46%
DXCM	―	$23.57B	33.63	30.63%	―	14.21%	5.66%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNDM	―	$945.97M	―	-111.91%	―	25.84%	-47.67%

Dexcom Corporate Events

Dexcom’s $750 Million Share Buyback: Uncertainty Looms Amid Market Volatility

Dexcom’s 2025 Share Repurchase Program, authorized by its Board of Directors, aims to buy back up to $750 million of its common stock by June 30, 2026. However, the program’s success in enhancing long-term share value is uncertain due to potential market volatility and other factors such as unfavorable market conditions and strategic opportunities. The company retains discretion over the timing and amount of repurchases, which may impact stock price and earnings per share. As of September 30, 2025, Dexcom has repurchased 2.4 million shares for $187.2 million, but the program’s future impact remains unpredictable.

DexCom’s Earnings Call Highlights Robust Growth and Strategic Expansions

DexCom’s recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and strategic product expansions. The company showcased its advancements in type 2 diabetes continuous glucose monitoring (CGM) coverage and introduced innovative products like the DexCom Smart Basal. Despite these achievements, challenges in managing gross margins and quality issues with the G7 sensor deployment were acknowledged. Overall, the sentiment was buoyed by strong financial performance and strategic progress, even as some operational hurdles were noted.

Dexcom Reports Strong Q3 2025 Growth and Raises Guidance

Dexcom, Inc., a leader in glucose biosensing technology, continues to innovate in the healthcare sector by providing advanced solutions for diabetes management. The company has reported a strong financial performance for the third quarter of 2025, with significant revenue growth and strategic advancements.

Dexcom Expands Board with New Appointment

On October 24, 2025, Dexcom‘s Board of Directors expanded to include Dr. Euan Ashley, a renowned researcher and clinician, who will serve on the Nominating and Governance Committee and the Technology Committee. This appointment, along with the planned addition of Jacob S. Leach in January 2026, is part of Dexcom’s strategic efforts to strengthen its leadership in medical technology and healthcare innovation, enhancing its capacity to advance metabolic health globally.

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’s Latest Study: A New Approach to Managing Uncontrolled Type 2 Diabetes

Study Overview: The COMPASS Program, officially titled ‘Continuous Monitoring, Peer And Structured Support for Management of Uncontrolled Type 2 Diabetes,’ is a prospective single-arm study aimed at evaluating the efficacy of a virtual group visit program using continuous glucose monitoring (CGM) to improve glucose levels and quality of life in individuals with uncontrolled type 2 diabetes. This study is significant as it explores the integration of technology and peer support in diabetes management.

Dexcom CEO Takes Medical Leave, Interim Roles Announced

On September 14, 2025, Dexcom announced that CEO and Chairman Kevin R. Sayer took a temporary medical leave of absence. Jacob S. Leach, the company’s President and COO, was appointed interim principal executive officer, while Mark Foletta was named interim chairman of the board. Both appointees will not receive additional compensation for their interim roles.

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.