DXCM
Dexcom
$83.47
▲ 0.5%Updated Today 11:30 AM ET
DXCM at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 70/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 10.5% over the last 12 months
Market Cap
$27.49B
P/E
34.94x
Forward P/E (est.)
24.96x
ROE
33.8%
Revenue Growth
16.1%
EPS Growth
77.5%
Profit Margin
19.3%
FCF Yield
1.8%
Debt / Equity
0.47x
ROIC
24.0%
Interest Coverage
44.92x
Current Ratio
1.95x
Dividend Yield
—
Implied Growth (rev. DCF)
4.9%
Rating Score
70/100
Dexcom (DXCM) is a large-cap company in the Health Care Equipment industry, part of the Health Care sector of the S&P 500, with a market value around $27.49B.
In its latest reported year it generated about $4.66B in revenue and $836.30M in net profit.
Our model rates DXCM Favorable (70/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
61.2% average over the last 3 years
±2.8 pts around 64.5% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 10 of 10 years
24.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DXCM's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DXCM trades near $83.47, above its 50-day average ($67.69) and 200-day average ($67.13). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 40 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. DXCM's is $2.47 (~3.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month DXCM found buyers near $67.30 (support) and sellers near $78.91 (resistance); its 52-week range is $54.11–$89.98. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
17.5%
Revenue moved from $573.30M in 2016 to $4.66B in 2025, a 26.2% compound annual growth rate. The most recent year grew a strong 16.1% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
60.1%
Operating Margin
19.6%
Net Margin
17.9%
ROE
33.8%
Dexcom keeps about 19.3% of each sales dollar as net profit, with a 60.1% gross margin and 19.6% operating margin. Return on equity is 33.8% and return on invested capital about 24.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$2.90M
Net Debt
-$1.12B
Net cash position
Net Debt / EBITDA
-1.22x
Debt / Equity
0.47x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 44.9x, with a current ratio of 1.9x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $2.90M of total debt against $1.12B of cash.
Operating CF
$1.44B
Free Cash Flow
$1.08B
FCF Margin
23.1%
In the latest year Dexcom produced about $1.44B of operating cash flow and $1.08B of free cash flow after capital spending. That is a free-cash-flow yield of about 1.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
34.94x
P/S
6.11x
P/B
10.76x
EV / EBITDA
—
DXCM trades at 34.9x trailing earnings (about 25.0x on estimated forward earnings), 6.1x sales, and 10.8x book value. Reverse-engineering today's price implies the market expects roughly 4.9% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$94.00
Current price
$83.47
Starting FCF (latest 10-K)
$1.08B
Growth, years 1–5
16.1%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where DXCM sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How DXCM stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), DXCM ranks #9 of 324 by our overall rating. It trades at a premium versus the sector on earnings (34.9x P/E vs. 27.3x median) with a higher return on equity (33.8% vs. 14.1%) and faster revenue growth (16.1% vs. 7.6%).
P/E vs sector
34.9x
median 27.3x
ROE vs sector
33.8%
median 14.1%
Growth vs sector
16.1%
median 7.6%
Sector rank
#9
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $83.47 today · expected CAGR 6% – 18%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.41B | $6.27B | $7.28B | $8.44B | $9.79B |
| Net income | $973.43M | $1.13B | $1.31B | $1.52B | $1.76B |
| EPS | $2.96 | $3.43 | $3.98 | $4.61 | $5.35 |
| Share price (low) | $62.06 | $71.99 | $83.51 | $96.87 | $112.37 |
| Share price (high) | $103.44 | $119.99 | $139.18 | $161.45 | $187.29 |
| CAGR (low–high) | -26% / 24% | -7% / 20% | 0% / 19% | 4% / 18% | 6% / 18% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for DXCM:
- Revenue is growing 16.1% a year, a sign of real demand.
- High net margins (19.3%) point to pricing power or efficiency.
- Strong return on equity (33.8%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.5x) lowers risk.
- Our model's overall read is Favorable (70/100).
The case against DXCM:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 34.9x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Dexcom is a large-cap health care business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 34.9x earnings, which our model scores Favorable (70/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 36 Wall Street analysts covering DXCM recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
DXCM's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
DXCM — frequently asked questions
Is DXCM a good stock to buy?
We don't give buy or sell advice. Our model rates Dexcom Favorable (70/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is DXCM's rating on The Stocks School?
Dexcom currently scores 70/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does DXCM's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Dexcom's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for DXCM calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this DXCM analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell DXCM. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.