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Dexcom (DXCM)
NASDAQ:DXCM
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Dexcom
(NASDAQ:DXCM)66Neutral
Positive Factors
Product Launch
Approval and launch of the G7 15-day system is expected to drive gross margins higher.
Supply Chain Management
DXCM successfully worked through supply issues, indicating a positive update.
Negative Factors
Rebate Impact
Rebate eligibility negatively impacted Dexcom's US growth rate by several points in the recent quarter.
Dexcom (DXCM) vs. S&P 500 (SPY)
Market Cap
$32.03B
Dividend YieldN/A
Average Volume (3M)3.63M
Price to Earnings (P/E)55.8
Beta (1Y)0.96
Revenue Growth11.34%
EPS Growth4.24%
CountryUS
Employees10,300
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)1.42
Shares Outstanding390,772,000
10 Day Avg. Volume3,993,590
30 Day Avg. Volume3,633,669
Financial Highlights & Ratios
PEG Ratio13.16
Price to Book (P/B)N/A
Price to Sales (P/S)7.94
Price to Cash Flow (P/CF)26.60
P/FCF Ratio26.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$102.71Price Target Upside31.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
Dexcom Business Overview & Revenue Model
Company DescriptionDexcom, Inc. is a leading medical device company that specializes in developing, manufacturing, and distributing continuous glucose monitoring (CGM) systems for diabetes management. Operating primarily within the healthcare and technology sectors, Dexcom's core products are designed to provide real-time glucose monitoring for patients, enabling better diabetes management and improving patient outcomes. The company is headquartered in San Diego, California, and has a global presence, serving patients and healthcare providers worldwide.
How the Company Makes MoneyDexcom makes money primarily through the sale of its continuous glucose monitoring systems, which include sensors, transmitters, and receivers or compatible smart devices. The company's revenue model is based on a combination of direct sales to consumers and healthcare providers, as well as through partnerships with insurance companies and healthcare systems that facilitate the reimbursement processes for patients. Additionally, Dexcom generates revenue through ongoing replacement sales of sensors and transmitters, which need regular replenishment. Significant partnerships with technology firms, such as those integrating Dexcom's data into broader health management platforms, also enhance its market reach and contribute to its earnings. The company's focus on innovation and product improvement helps maintain its competitive advantage in the growing diabetes management market.
Dexcom Financial Statement Overview
Summary
Dexcom displays strong income growth and profitability, with stable operational margins indicating a positive trajectory. The balance sheet reflects stability with a balanced use of debt and equity financing, though reliance on liabilities is notable. Incomplete cash flow data for 2024 raises questions about cash management strategies.Income Statement
Dexcom demonstrates strong revenue growth, with a revenue increase from $3.62 billion in 2023 to $4.03 billion in 2024, reflecting a growth rate of 11.34%. The gross profit margin is robust at 61.13% for 2024. Net profit margin also improved to 14.29% from 14.95% in the previous year. The EBIT margin remains stable at 14.87%, indicating consistent operational efficiency. These metrics highlight a healthy and growing financial performance, supported by efficient cost management.85
Very Positive
Balance Sheet
Dexcom maintains a moderate debt-to-equity ratio of 1.20 in 2024, suggesting a balanced use of debt and equity financing. The return on equity (ROE) is strong at 27.40%, indicating effective use of shareholders' equity to generate profits. However, the equity ratio is 32.42%, which could suggest a higher reliance on liabilities. Overall, the balance sheet reflects stability with a manageable level of debt.75
Positive
Cash Flow
The cash flow statement lacks complete data for 2024, making it challenging to fully assess the cash flow performance. However, in 2023, Dexcom had a positive free cash flow of $511.9 million, indicating good cash generation. The absence of 2024 cash flow data is a concern for assessing ongoing cash management and investment capacity.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.03B | 3.62B | 2.91B | 2.45B | 1.93B | Gross Profit |
| 2.47B | 2.29B | 1.88B | 1.68B | 1.28B | EBIT |
| 600.00M | 597.70M | 391.20M | 175.40M | 299.50M | EBITDA |
| 840.70M | 916.70M | 565.30M | 377.50M | 376.80M | Net Income Common Stockholders |
| 576.20M | 541.50M | 341.20M | 154.70M | 493.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.58B | 2.72B | 2.46B | 2.73B | 2.71B | Total Assets |
| 6.48B | 6.26B | 5.39B | 4.86B | 4.29B | Total Debt |
| 2.53B | 2.59B | 2.09B | 1.82B | 1.84B | Net Debt |
| 1.92B | 2.03B | 1.44B | 769.20M | 1.02B | Total Liabilities |
| 4.38B | 4.20B | 3.26B | 2.61B | 2.46B | Stockholders Equity |
| 2.10B | 2.07B | 2.13B | 2.25B | 1.83B |
| Cash Flow | Free Cash Flow | |||
| 630.70M | 511.90M | 304.70M | 53.30M | 276.60M | Operating Cash Flow |
| 989.50M | 748.50M | 669.50M | 442.50M | 475.60M | Investing Cash Flow |
| -207.50M | -507.20M | -521.50M | -216.10M | -1.02B | Financing Cash Flow |
| -734.80M | -318.60M | -552.50M | 10.40M | 912.10M |
Dexcom Technical Analysis
Negative
77.84
Price Trends
84.62
Negative
79.49
Negative
85.38
Negative
Market Momentum
-1.13
Positive
31.76
Neutral
4.83
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 77.84 is below the 20-day moving average (MA) of 86.55, below the 50-day MA of 84.62, and below the 200-day MA of 85.38, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 31.76 is Neutral, neither overbought nor oversold. The STOCH value of 4.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXCM.
Dexcom Risk Analysis
Dexcom disclosed 77 risk factors in its most recent earnings report. Dexcom reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dexcom Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $238.83B | 18.03 | 30.95% | 1.66% | 4.59% | 134.50% | |
77 Outperform | $119.44B | 28.31 | 8.42% | 3.00% | 2.72% | 4.48% | |
76 Outperform | $19.02B | 44.86 | 43.03% | ― | 22.07% | 101.95% | |
66 Neutral | $32.03B | 55.81 | 27.63% | ― | 11.34% | 4.24% | |
56 Neutral | $1.27B | ― | -33.30% | ― | 25.74% | 57.18% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
39 Underperform | $451.73M | ― | -166.29% | ― | 0.37% | -20.49% |
* Healthcare Sector Average
Performance Comparison
DXCM
Dexcom
77.84
-57.41
-42.45%
ABT
Abbott Labs
137.14
18.60
15.69%
PODD
Insulet
251.81
72.22
40.21%
MDT
Medtronic
94.50
12.18
14.80%
TNDM
Tandem Diabetes Care
17.96
-12.74
-41.50%
SENS
Senseonics Holdings
0.65
0.03
4.84%
Dexcom Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -7.43% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for DexCom, with strong revenue growth, significant customer base expansion, and successful international market performance. However, challenges such as gross margin decline and operating income reduction were noted, indicating areas for improvement.Highlights
Strong Revenue Growth
DexCom reported fourth quarter organic revenue growth of 8% compared to Q4 2023, with full-year organic revenue growth of 12%.
Customer Base Expansion
Ended 2024 with more than 2.8 million customers globally, representing a 25% increase compared to 2023.
Significant Coverage Expansion
Gained coverage for over five million people with type 2 diabetes not on insulin in the US, with two of the three largest PBMs now covering DexCom CGM for anyone with diabetes.
International Market Success
International revenue grew 17% in Q4, with significant demand in France and New Zealand following coverage expansions.
Stella Over-the-Counter Product Success
More than 140,000 people used Stella in the first four months of its launch, with strong demand across various populations.
Lowlights
Gross Margin Decline
Gross profit margin decreased to 59.4% from 64.2% in Q4 2023, impacted by a $21 million non-cash charge related to inventory issues.
Operating Income Reduction
Operating income dropped to $209.5 million (18.8% of revenue) in Q4 2024 from $242.7 million (23.5% of revenue) in Q4 2023.
Challenges with US Growth Rate
US revenue growth was negatively impacted by rebate eligibility, with a 4% increase compared to Q4 2023.
Company Guidance
In the earnings call for DexCom, Inc.'s fiscal year 2024, the company reported an 8% organic revenue growth for the fourth quarter compared to the same period in 2023, resulting in a full-year organic revenue growth of 12%. DexCom ended 2024 with over 2.8 million global customers, a 25% increase from the previous year. The company experienced notable progress in expanding its U.S. prescriber base by more than 50,000 and improving sales force productivity. International revenue grew by 17% to $311 million in Q4, with notable coverage wins in key markets like France and New Zealand. DexCom's guidance for 2025 anticipates a total revenue of $4.6 billion, representing a 14% growth, driven by continued strong category growth, new product launches, and expanded coverage for the Stella product, which contributed to 2-3% of revenue. The company also expects improvements in gross profit margins, targeting 64-65%, and adjusted EBITDA of approximately 30% for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.