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DexCom Inc (DXCM) stock analysis

DXCMNasdaqSurgical & Medical Instruments & ApparatusFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 29, 2026Score 22/3032% below fair value
$81.39+1.05 (+1.30%)

Close on Nov 12, 2026Market cap $30.35BP/E 32.0Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value4Growth6Performance6Health6Dividend0

Strong22 of 30 checks passed

DexCom passes 22 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
4/6
Growth
6/6
Past performance
6/6
Financial health
6/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 32.2% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $80.34 is below our fair value estimate of $118.43.

  • Return on equity over 15%

    Return on equity was 37.7% over the last twelve months and averaged 23.3% over five years.

  • Return on capital over 10%

    Return on invested capital was 78.0%, above the 10% that usually covers the cost of capital.

What to watch

  • P/E above the industry

    DexCom's P/E of 31.6 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

  • P/B above the industry

    DexCom's price-to-book of 11.82 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

  • No dividend

    DexCom has not paid a dividend in the last twelve months.

Valuation4/6

  • P/E below its 5-year median

    DexCom's P/E of 31.6 is below its own 5-year median of 79.0.

  • P/E above the industry

    DexCom's P/E of 31.6 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

  • EV/EBITDA below its 5-year median

    DexCom's EV/EBITDA of 19.4 is below its 5-year median of 51.0.

  • P/B above the industry

    DexCom's price-to-book of 11.82 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

  • Trading below fair value

    The share price of $80.34 is below our fair value estimate of $118.43.

  • Margin of safety over 20%

    The price is 32.2% below fair value, more than the 20% cushion we look for.

Growth6/6

  • Revenue growing 10%+ a year

    Revenue grew 17.0% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 36.6% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 37.5% over the last twelve months, against a 5-year average of 8.8% a year.

  • Growing faster than the industry

    Revenue grew 13.0% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

  • Guidance raised

    DexCom raised its fiscal year 2026 Revenue outlook on Oct 29, 2026.

  • Gross margin improving

    Gross margin was 63.4% over the last twelve months, against 59.0% a year earlier.

Past performance6/6

  • Return on equity over 15%

    Return on equity was 37.7% over the last twelve months and averaged 23.3% over five years.

  • Return on capital over 10%

    Return on invested capital was 78.0%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    DexCom's return on equity of 37.7% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

  • Earnings grew over 5 years

    Net income grew 8.8% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 19.4% over the last twelve months, against a 5-year average of 13.6%.

  • Net margin above the industry

    DexCom's net margin of 19.4% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

Financial health6/6

  • No debt

    DexCom has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    Operating income covers interest expense 91.3 times.

  • Short-term assets cover short-term debts

    Current assets are 1.74 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 7.35; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    DexCom has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$118.43

The share price is 32% below this estimate.

20%+ below
Near fair value
20%+ above
$80.35Price$118.43Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E45.0×79.0×27.7×$114.3053%
EV/EBITDA30.0×51.0×16.7×$123.1447%
Earnings powerleft out, too far from the others10.8% cost of equity––$20.81–
Fair value$118.43100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 79.0
  • Surgical, Medical, and Dental Instruments and Supplies median 27.7

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$365.75M
Value traded per 1% price move
$223.40M

Downside

Low risk

Typical loss in a bad month
12.1%
Volatility (annualized)
38%
Sharpe ratio, 1 year
1.10
Beta to the S&P 500 (5Y)
1.19

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

60.1%−6.3 pts over 5 years

Operating margin

19.6%+4.0 pts over 5 years

Net margin

17.9%−10.6 pts over 5 years

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