DXCMDXCM
US • —
$67.35
P/E
29.10
PEG
0.38
FCF Yield
—
Rev Growth YoY
+16.1% YoY
Gross Margin
63.4%
Health Score
8/10
D/E Ratio
0.47
Confidence
LOW
Business Snapshot
DexCom operates in the continuous glucose monitoring (CGM) systems market, generating revenue primarily from its sensor-based glucose monitoring products and related hardware. The company is a dominant player in the CGM space, competing directly with Abbott's FreeStyle Libre and Medtronic's Guardian system, and holds a significant market share in the U.S. It is a large-cap company with a strong focus on the diabetes management market, a sector characterised by recurring revenue from consumable sensors. A key defining characteristic is its regulatory moat and brand loyalty, built around a technology platform that provides real-time glucose data to patients and healthcare providers, creating a sticky customer base.
Financial Health
DexCom demonstrates robust profitability with a gross margin of 63.4% and a net margin of 19.3%, though year-over-year margin trends are not available for comparison. The balance sheet is conservatively financed with a low debt-to-equity ratio of 0.47x and a healthy current ratio of 1.88x, indicating ample liquidity and low financial risk...
Risk Assessment
- VALUATION — P/E of 29.1x is above the sector average of 22x, suggesting expectations for continued strong performance are already priced in.
- EARNINGS QUALITY — 3 of 4 recent quarters beat estimates, which is not a credibility risk but suggests management may be guiding conservatively.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow data is unavailable; the absence of this key metric prevents a full assessment of cash generation and financial sustainability.
- INSIDER ACTIVITY — Net selling with 0 buys versus 5 sells over the last 90 days; this is a potential signal of reduced confidence from corporate insiders....
DexCom demonstrates robust profitability with a gross margin of 63.4% and a net margin of 19.3%, though year-over-year margin trends are not available for comparison. The balance sheet is conservatively financed with a low debt-to-equity ratio of 0.47x and a healthy current ratio of 1.88x, indicating ample liquidity and low financial risk. Return on equity is a strong 33.8%, reflecting highly efficient capital deployment by management. Free cash flow data is not provided, which prevents a full cash generation assessment, but the low debt and high margins suggest the company has substantial reinvestment capacity. Overall, the financial health score is strong, supported by high margins, a low debt burden, and solid liquidity, positioning the company well for funding growth initiatives.
- VALUATION — P/E of 29.1x is above the sector average of 22x, suggesting expectations for continued strong performance are already priced in. - EARNINGS QUALITY — 3 of 4 recent quarters beat estimates, which is not a credibility risk but suggests management may be guiding conservatively. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow data is unavailable; the absence of this key metric prevents a full assessment of cash generation and financial sustainability. - INSIDER ACTIVITY — Net selling with 0 buys versus 5 sells over the last 90 days; this is a potential signal of reduced confidence from corporate insiders.
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