Dexcom (DXCM)
Health Care · $33.8B market cap · SEC CIK 0001093557
fundamentals score out of 100
Next reports on Oct 28, 2026, with analysts expecting $0.68 in earnings per share.
The case for DXCM
- Earns 36% back on shareholder equity.
- Generated $1.1B of free cash flow in FY2025, 23% of revenue.
- 20% of revenue drops through to net profit.
- Revenue growing 15.5% year over year.
- Earnings per share up 79.4%.
- A PEG of 0.43: a P/E of 33.8× is low for EPS growing 79%.
The case against
- Pricey at 33.8× earnings, against a long-run market average nearer 20×.
- Weakest against its peers: price/sales of 6.8× is higher than 79% of Health Care companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 33 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 88 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 83 |
| Momentumhow the price has behaved lately | 86 |
| Stabilityhow violently it moves, what it owes and what it pays you | 46 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 33.8× |
|---|---|
| Price / book | 9.91× |
| Price / sales | 6.8× |
| Revenue growth (YoY) | +15.5% |
| EPS growth (YoY) | +79.4% |
| Gross margin | 64% |
| Operating margin | 23% |
| Net margin | 20% |
| Return on equity | 36% |
| Debt / equity | 0.49× |
| Current ratio | 1.73 |
| Dividend yield | none |
| Beta | 1.45 |
| 52-week range | $54.11 – $92.59 |
| Position in that range | 92% of the way up |
| 3-month return | +23.0% |
| 1-year return | +32.2% |
Five years of financials, as filed
Pulled from Dexcom's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $4.7B | $4.0B | $3.6B | $2.9B | $2.4B |
| Gross profit | $2.8B | $2.4B | $2.3B | $1.9B | $1.7B |
| Operating income | $912M | $600M | $598M | $391M | $266M |
| Net income | $836M | $576M | $542M | $341M | $217M |
| Operating cash flow | $1.4B | $990M | $749M | $670M | $443M |
| Capital expenditure | $364M | $359M | $237M | $365M | $389M |
| Total assets | $6.3B | $6.5B | $6.3B | $5.4B | $4.9B |
| Total liabilities | $3.6B | $4.4B | $4.2B | $3.3B | $2.9B |
| Shareholder equity | $2.7B | $2.1B | $2.1B | $2.1B | $2.0B |
| Cash | $918M | $606M | $566M | $642M | $1.1B |
| Free cash flow | $1.1B | $631M | $512M | $305M | $53.3M |
| Gross margin | 60.1% | 60.5% | 63.2% | 64.7% | 68.6% |
| Operating margin | 19.6% | 14.9% | 16.5% | 13.4% | 10.9% |
| Net margin | 17.9% | 14.3% | 14.9% | 11.7% | 8.9% |
| Diluted shares | 406M | 413M | 426M | 428M | 429M |
Share count is down 5.4% over 4 years. Buybacks have been shrinking the pie.
What Dexcom says it does
Overview We are a medical device company primarily focused on the design, development and commercialization of continuous glucose monitoring, or CGM, systems for the management of diabetes and metabolic health by patients, caregivers, and clinicians around the world. We received approval from the Food and Drug Administration, or FDA, and commercialized our first product in 2006. We launched our latest generation systems, the Dexcom G7 Continuous Glucose Monitoring System, or G7, in 2023, and the Dexcom G7 15 Day Continuous Glucose Monitoring System, or G7 15 Day, in late 2025. In August 2024, we launched Stelo, our biosensor designed for adults with prediabetes and Type 2 diabetes who do not use insulin, as the first over-the-counter glucose biosensor in the U.S. Unless the context requires otherwise, the terms "we," "us," "our," the "company," or "Dexcom" refer to DexCom, Inc. and its subsidiaries. Products Dexcom G7 and G7 15 Day In…
Risk factors DXCM lists in its 10-K
- Risks Related to Our Business and Operations
- Risks Related to Pricing and Reimbursement
- Risks Related to Product Development
- Our products may not achieve or maintain market acceptance
- Risks Related to Manufacturing, Commercial Operations and Commercialization
- If our manufacturing capabilities are insufficient to produce an adequate supply of product at appropriate quality levels, our growth could be limited and our business could be harmed
- Manufacturing difficulties and/or any disruption at our facilities may adversely affect our manufacturing operations and related product sales, and increase our expenses
- We depend upon third-party suppliers and outsource to other parties, making us vulnerable to supply disruptions, suboptimal quality, non-compliance and/or price fluctuations, which could harm our business
- We operate in a highly competitive market and face competition from large, well-established companies with significant resources, and, as a result, we may not be able to compete effectively
- We are subject to risks associated with public health issues, including pandemics, which could have a material adverse effect on our business, financial condition and results of operations
- Risks Related to our International Operations
- We are subject to a variety of risks due to our international operations that could adversely affect our business, our operations or profitability and operating results
- Laws and regulations governing the export of our products could adversely impact our business
- The failure to comply with U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws in non-U.S. jurisdictions could materially adversely affect our business and result in civil and/or criminal sanctions