A Business at a Glance
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DEXCOM INC
DXCM
$28.6B
Mkt Cap
$71.54
+1.50%
DEXCOM INC (DXCM) has a current P/E ratio of 34.2, compared to its historical median P/E of 64.1. The stock is currently considered Cheap based on its historical valuation range.
DEXCOM INC (DXCM) has a 5-year average return on invested capital (ROIC) of 29.1%. This indicates strong capital allocation and a potential competitive advantage.
DEXCOM INC (DXCM) has a market capitalization of $27.6B. It is classified as a large-cap stock.
DEXCOM INC (DXCM) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.81%.
Based on historical P/E analysis, DEXCOM INC (DXCM) appears cheap. The current P/E of 34.2 is 47% below its historical median of 64.1. The estimated fair value CAGR (P/E method) is 21.9%.
DEXCOM INC (DXCM) operates in the Surgical & Medical Instruments & Apparatus industry, within the Healthcare sector.
DEXCOM INC (DXCM) reported annual revenue of $4.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Dexcom is a medical device company focused on designing, developing, and commercializing continuous glucose monitoring (CGM) systems for diabetes and metabolic health management globally. The company's primary products are the Dexcom G7 and G7 15 Day CGM systems, which are integrated Class II devices cleared by the FDA for people with diabetes ages two and older, offering 10-day and 15.5-day wear periods respectively with no-calibration finger-stick elimination and five-minute glucose reading intervals. In August 2024, Dexcom launched Stelo, an over-the-counter glucose biosensor for adults with prediabetes and Type 2 diabetes not using insulin, expanding the addressable market beyond insulin-dependent populations. The company generates revenue through a subscription-based model where patients and healthcare systems purchase disposable sensors and transmitters, with reimbursement from Medicare, Medicaid, and commercial insurers in the United States and coverage through various payers internationally. Dexcom's competitive moat derives from its integrated ecosystem of compatible devices (insulin pumps, smart pens, wearables), proprietary glucose-sensing algorithms, cloud-based data analytics through Dexcom Clarity, and established relationships with major insulin delivery partners and healthcare systems. The company serves Type 1 and Type 2 insulin-using patients as its core market, with expanding opportunities in the Type 2 non-insulin population, and maintains a global geographic footprint with significant presence in the United States, Europe, and other international markets.
【Coverage expansion driving growth】 Management expects continued strong category growth in CGM adoption, with particular emphasis on unlocking coverage for the Type 2 non-insulin population through an ongoing randomized controlled trial expected to read out in the first half of 2026, which is anticipated to support Medicare coverage decisions and become the cornerstone of the global payer evidence base. The company is investing in sales force expansion and advanced targeting tools to educate prescribers about newly available coverage, particularly through pharmacy benefit manager (PBM) channels, and expects this coverage expansion to drive incremental patient volume growth beyond the base case assumptions. Manufacturing capacity is being expanded with the Ireland facility launching late in 2026 to support anticipated demand from broader global coverage, while gross margin is expected to improve 200-300 basis points in 2026 from lower freight expenses, manufacturing efficiencies, and growing G7 15 Day contribution. Management plans to continue investing in research and development, sales infrastructure, and product innovation, including software updates and adhesive improvements, while maintaining disciplined operating expense management to drive operating margin expansion.
| Metric | Target | Period |
|---|---|---|
| Revenue | $5.16 billion–$5.25 billion | FY2026 |
| Non-GAAP Gross Profit Margin | 63%–64% | FY2026 |
| Non-GAAP Operating Profit Margin | 22%–23% | FY2026 |
| Adjusted EBITDA Margin | 30%–31% | FY2026 |
Revenue (FY2026): “we anticipate total revenue to be in a range of $5.16 billion-$5.25 billion, representing growth of 11%-13% for the year”
Non-GAAP Gross Profit Margin (FY2026): “we expect full-year non-GAAP gross profit margin to be in a range of 63%-64%”
Non-GAAP Operating Profit Margin (FY2026): “non-GAAP operating profit margin to be approximately 22%-23%”
Adjusted EBITDA Margin (FY2026): “adjusted EBITDA margin of approximately 30%-31%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.8B | 4.7B | 4.0B | 3.6B | 2.9B | 2.4B |
| Net Income | 930M | 836M | 576M | 542M | 341M | 217M |
| EPS | $2.40 | $2.09 | $1.42 | $1.30 | $0.82 | $0.13 |
| Free Cash Flow | 1.4B | 1.1B | 631M | 512M | 305M | 53M |
| ROIC | 38.3% | 71.6% | 23.4% | 21.7% | 16.4% | 12.5% |
| Gross Margin | 61.5% | 60.1% | 60.5% | 63.2% | 64.7% | 68.6% |
| Debt/Equity | 0.08 | 0.13 | 0.16 | 0.17 | 0.17 | 0.18 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.0B | 912M | 600M | 598M | 391M | 266M |
| Operating Margin | 21.4% | 19.6% | 14.9% | 16.5% | 13.4% | 10.9% |
| ROE | 31.5% | 34.5% | 27.6% | 25.8% | 16.3% | 12.1% |
| Shares Outstanding | 386M | 400M | 406M | 417M | 416M | 1,637M |
DEXCOM INC passes 8 of 9 quality checks, indicating strong fundamentals.
DEXCOM INC trades at 34.2x trailing earnings, compared to its 15-year median P/E of 64.1x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 25.6x vs a median of 38.4x. The company's 5-year average ROIC is 29.1% with a gross margin of 63.4%. Total shareholder yield (buybacks) is 1.8%. At current prices, the estimated annualized return to fair value is +35.8%.
DEXCOM INC (DXCM) has a net profit margin of 17.9%. This is a healthy margin.
DEXCOM INC (DXCM) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DEXCOM INC (DXCM) has a debt-to-equity ratio of 0.13. This indicates a conservatively financed balance sheet.
DEXCOM INC (DXCM) reported earnings per share (EPS) of $2.09 in its most recent fiscal year.
DEXCOM INC (DXCM) has a return on equity (ROE) of 34.5%. This indicates the company generates strong returns for shareholders.
DEXCOM INC (DXCM) has a 5-year average gross margin of 63.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for DEXCOM INC (DXCM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DEXCOM INC (DXCM) has a book value per share of $6.86, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong category growth in CGM adoption, with particular emphasis on unlocking coverage for the Type 2 non-insulin population through an ongoing randomized controlled trial expected to read out in the first half of 2026, which is anticipated to support Medicare coverage decisions and become the cornerstone of the global payer evidence base. The company is investing in sales force expansion and advanced targeting tools to educate prescribers about newly available coverage, particularly through pharmacy benefit manager (PBM) channels, and expects this coverage expansion to drive incremental patient volume growth beyond the base case assumptions. Manufacturing capacity is being expanded with the Ireland facility launching late in 2026 to support anticipated demand from broader global coverage, while gross margin is expected to improve 200-300 basis points in 2026 from lower freight expenses, manufacturing efficiencies, and growing G7 15 Day contribution. Management plans to continue investing in research and development, sales infrastructure, and product innovation, including software updates and adhesive improvements, while maintaining disciplined operating expense management to drive operating margin expansion.
Based on recent SEC filings and earnings calls, DEXCOM INC (DXCM) has provided the following forward guidance: Revenue: $5.16 billion–$5.25 billion (FY2026); Non-GAAP Gross Profit Margin: 63%–64% (FY2026); Non-GAAP Operating Profit Margin: 22%–23% (FY2026); Adjusted EBITDA Margin: 30%–31% (FY2026).