One-glance verdict
Within fair range
$79.02 our estimate vs market $78.62
Wall Street consensus: $96.19 (21.7% higher than our fair-value estimate)
1% below our estimate
Fundamentals snapshot
DexCom, Inc.
DXCM · NMS · Healthcare · Medical Devices
Current price
$78.62
52-week range
$54.11 - $92.59
Market cap
$29.67B
Balance sheet
Healthy
49.83x Strong cushion
Net cash $548.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.6% last year.
- Reward Returns 38.5% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.3% (peer median: 0.3%).
What this company does
DexCom, Inc.
DexCom makes devices that help people with diabetes track their blood sugar without needing to prick their fingers all the time, which is great for managing their health. Their main money comes from selling these continuous glucose monitoring systems directly to doctors and diabetes educators who then recommend them to patients. This is important because it means people can better control their diabetes, and the company can build a steady stream of sales for their technology.
How the company got here
DexCom was founded in 1999 by a group of individuals who saw the need for a better way to manage diabetes than traditional fingerstick blood glucose testing. [1, 4, 6, 7, 15] Their initial goal was to develop continuous glucose monitoring (CGM) systems that could provide real-time data, offering a more complete picture of glucose levels over time. [4, 15] The company launched its first sensor in 2004 and received FDA approval for its three-day STS CGM system in 2006. [1] Over the years, Dexcom has consistently innovated, releasing improved versions of its CGM systems, such as the Seven, G4, G5, G6, and most recently, the G7. [1, 4] A key turning point was the development of mobile-compatible systems, like the G5 Mobile CGM System in 2016, which allowed users to view their glucose data on smartphones. [4] Dexcom went public in 2005 and has since become a leader in diabetes care technology, aiming to make CGM a standard part of diabetes management. [1, 6, 7, 8]
What it actually does
DexCom designs, develops, and commercializes continuous glucose monitoring (CGM) systems. [1, 10, 12] These systems help people with diabetes track their glucose levels in real-time, providing data that can be used to make informed decisions about insulin, diet, and lifestyle. [3, 15] Instead of relying solely on fingerstick blood tests, which offer only a snapshot of glucose levels, Dexcom's technology provides a continuous stream of information, showing trends and patterns over time. [4] The company's products include wearable sensors, associated electronics, mobile applications, and cloud-based data sharing platforms. [8, 10, 12] Dexcom markets its products directly to healthcare professionals like endocrinologists, physicians, and diabetes educators, who then prescribe them to patients. [2, 3, 10, 12, 14]
Diabetes Care Segment
This is Dexcom's primary business, focused on providing continuous glucose monitoring solutions for individuals managing diabetes. [3] The core of this segment involves advanced CGM devices that offer real-time feedback on glucose levels, helping users make critical decisions about their diabetes management. [3, 15] These systems include wearable sensors and transmitters that send data to a receiver or smartphone app. [10, 17] The segment also encompasses mobile applications that allow for seamless data tracking and insights into glucose patterns, as well as analytics tools to help users understand their health trends. [3] This segment serves a broad range of patients, including those with Type 1 diabetes, insulin-using Type 2 diabetes, and increasingly, broader Type 2 populations and even individuals not using insulin, like those with prediabetes. [8, 14, 15]
Non-Diabetes Care Segment (G6 Pro)
While Dexcom's main focus is on direct-to-patient diabetes management, it also offers systems like the Dexcom G6 Pro, which is specifically designed for healthcare providers and clinical settings. [3] This segment caters to hospitals and research institutions, enabling healthcare professionals to monitor patients' glucose levels in real-time. [3] The data gathered from the G6 Pro system helps clinicians make more informed decisions regarding patient care and develop tailored diabetes management strategies. [3] This business line allows Dexcom to engage with the medical community and gather data that can inform future product development.
What management is betting on now
Dexcom's management is focused on making continuous glucose monitoring (CGM) a standard tool for a much larger portion of the diabetes population. [8] They are achieving this by improving the ease of use of their devices, expanding insurance coverage (payer coverage), increasing access through pharmacies, and driving down costs through manufacturing efficiency and scale. [8, 18] A key strategy is broadening their customer base beyond intensive insulin users to include Type 2 diabetes patients who use less intensive therapy, and even those not using insulin, with products like the Stelo biosensor. [8, 10, 17] Management is also prioritizing international expansion, deepening integrations with other health technologies like insulin pumps and smartwatches, and enhancing manufacturing processes to improve profitability. [8, 16] They are also investing in AI-enabled features, such as food logging through smartphone photos, to further enhance the user experience and data insights. [10, 16] Dexcom is also strategically investing in partnerships, such as with Oura, to integrate CGM data with other wellness metrics like sleep and stress. [16]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$88.30M
FY2024 Q4
$176.80M
FY2025 Q1
$96.80M
FY2025 Q2
$208.90M
FY2025 Q3
$579.40M
FY2025 Q4
$192.10M
FY2026 Q1
$449.00M
FY2026 Q2
$184.50M
Revenue
$1.31B
Net income
$249.10M
Diluted EPS
0.64
Operating cash flow
$269.20M
Free cash flow
$184.50M
Fetching…
Sources
Revenue
$1.19B
Net income
$199.50M
Diluted EPS
0.51
Operating cash flow
$525.60M
Free cash flow
$449.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$267.30M
Diluted EPS
0.67
Operating cash flow
$294.00M
Free cash flow
$192.10M
Fetching…
Sources
Revenue
$1.21B
Net income
$283.80M
Diluted EPS
0.70
Operating cash flow
$659.90M
Free cash flow
$579.40M
Fetching…
Sources
Revenue
$1.16B
Net income
$179.80M
Diluted EPS
0.45
Operating cash flow
$303.00M
Free cash flow
$208.90M
Fetching…
Sources
Revenue
$1.04B
Net income
$105.40M
Diluted EPS
0.27
Operating cash flow
$183.80M
Free cash flow
$96.80M
Fetching…
Sources
Revenue
$1.11B
Net income
$151.70M
Diluted EPS
0.37
Operating cash flow
$301.40M
Free cash flow
$176.80M
Fetching…
Sources
Revenue
$994.20M
Net income
$134.60M
Diluted EPS
0.34
Operating cash flow
$199.50M
Free cash flow
$88.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $79.02 vs current price $78.62
Wall Street consensus is the average analyst price target: $96.19 (21.7% higher than our fair-value estimate).
Our most-likely fair value is $79.02 a share — about 0.5% away from today's price of $78.62, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $548.6M - more cash than debt. Interest coverage 49.8x.
Net debt
$-548.60M
Interest coverage
49.83x
DexCom, Inc.'s profit covers its interest bill about 49.8 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DXCM
BASELINE
DexCom, Inc.
Total debt $1.40B Interest coverage 49.83x This is the baseline the peer rows are being compared against.
Total debt $32.72B Interest coverage 16.33x -67% vs DXCM Carries about 3.1x less debt cushion than DXCM.
Total debt $28.15B Interest coverage 9.55x -81% vs DXCM Carries about 5.2x less debt cushion than DXCM.
Total debt $948.40M Interest coverage 7.98x -84% vs DXCM Carries about 6.2x less debt cushion than DXCM.
Total debt $739.25M Interest coverage -27.67x -100% vs DXCM This peer has almost no interest-payment cushion compared with DXCM.
Total debt $704.40M Interest coverage 80.21x +61% vs DXCM Carries about 1.6x more debt cushion than DXCM.
What you should know
The case for and against DXCM
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.6% last year.
-
Returns 38.5% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.3% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.20x
Forward P/E
25.17x
P/B
11.32x
P/S
5.97x
EV/EBITDA
20.75x
PEG ratio
1.30x
Profitability
How much profit each dollar creates
Gross margin
62.5%
Operating margin
24.3%
Net margin
20.1%
ROE
38.5%
ROA
10.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.53x
Current ratio
1.73x
Quick ratio
1.37x
Total debt
$1.40B
Total cash
$1.95B
Growth
How the business has been compounding
Revenue TTM
$4.97B
Revenue 5Y CAGR
17.5%
EPS TTM
2.52
EPS 5Y CAGR
36.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.75B
Free CF TTM
$1.08B
FCF margin
21.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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