Fundamental analysis: DexCom, Inc. (DXCM)

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Very good) and growth (Excellent), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 8.5

Business has been growing at an excellent pace. It's been more than average in relation to peer companies.
DexCom, Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 6.8

DXCM profit margins -on goods and services sold- are usually excellent. They stand somewhat better than rival companies.
Business profit on sales tends to be good. It's more than average in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still better than most similar companies.
Profits -before income taxes- are usually sufficient considering total sales, and remain great when measured against rivals.
Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 2.0

DexCom, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been a slight improvement compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 7.3

DXCM managed to get a credit on income taxes in the past years, even though it earned money. It's been top-notch against peers.
Research and development expenses consume some portion of revenues. It's almost average when measured against competitors.
The company shows business growth in relation to research and development efforts. It stands rather normal in relation to rival companies.

Profitability score: 6.8

DexCom, Inc. usually gets good returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
Profitability -in relation to owned resources- is usually quite good. It ranks great when measured against competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 4.5

DXCM usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands great when measured against rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is great when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company has significantly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks below average when measured against competitors.

Balance Sheet score: 4.4

DexCom, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be in a very weak position compared to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks almost average when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks substantially worse when measured against peers.
Normally has approximately four months of sales worth in inventory. It comes up as in good shape compared to competitors.
On average, it takes higher than six months from the purchase to charging customers. It happens to be somewhat better than peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's close to average when compared to similar companies.
Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands somewhat better than rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 3.5

DexCom, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be weak when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands somewhat better than similar companies.
In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still encouraging in relation to industry firms.
In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up close to average when compared to peer ventures.
The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks substantially worse when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a huge relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business lost a little money. It happens to be more than average in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 5.5

Company at a glance: DexCom, Inc. (DXCM)

Sector, industry: Healthcare, Medical Devices

Market Cap: 44.04 billions

Revenues TTM: 2.91 billions

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include DexCom G6, an integrated CGM system for diabetes management; Dexcom Real-Time API, which enables invited third-party developers to integrate real-time CGM data into their digital health applications and devices; Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions; and Dexcom Share, a remote monitoring system. The company's products candidature comprises Dexcom G7, a next generation G7 CGM system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was incorporated in 1999 and is headquartered in San Diego, California.