Quality Investor

DexCom, Inc.

Rank #114Hypergrowth

DXCM · Nasdaq · Healthcare

DexCom, Inc. (DXCM) — Rank #114 by gross profitability (GP/assets 0.43) · ROE 31.9% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001093557 · all metrics point-in-time as of the filing date.

About

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems for the management of diabetes and metabolic health in the United States and internationally.

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The company offers Dexcom G7 and G7 15 Day, an integrated continuous glucose monitoring system; Dexcom G6, a CGM system; Dexcom ONE+ to replace fingerstick blood glucose testing for diabetes treatment decisions; Stelo, a biosensor designed for adults with prediabetes and Type 2 diabetes who do not use insulin; Dexcom Share, a remote monitoring system; and Dexcom Follow application. It markets its products directly to endocrinologists, physicians, and diabetes educators.

The company was incorporated in 1999 and is headquartered in San Diego, California.

Industry
Medical Devices
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
dexcom.com

Price History

DXCM-38.6% · -9.3% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$32.63B

P/E (annual)

41.4

P/S (annual)

7.0

P/B

12.4

P/OCF (annual)

22.6

Shareholder Yield

-483.5%

Employees

11,000

Industry

Medical Devices

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.43
Return on equity
31.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.46
Current ratio
1.73×
Net cash
$2.87B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.4%

Growth

1/2 pass
Revenue growth
4566.7%
Piotroski F-Score
N/A
Share dilution
483.5%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

14.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 483.5% — per-share value needs a total required return of 497.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 56.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.6%

r = 10% (base)

14.3%

r = 12%

18.4%

Net debt / market cap: -8.2%

Base FCF: $1.1B3Y mean FCF: -$28.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

5.2xExpensive
1.7xmed 3.2x5.2x

P / B

Price / book value per share

5.5xFair
1.8xmed 5.0x9.4x

P / GP

Price / gross profit per share

7.8xExpensive
2.5xmed 5.3x9.4x

P / FCF

Price / free cash flow per share

36.1xCheap
36.1xmed 46.6x3306.2x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.43

Primary signal (Novy-Marx).

8th of 17 SIC 3841 peers

Return on equity

31.9%

Gross margin

60.1%

13th of 17 SIC 3841 peers

Revenue growth (YoY)

4566.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2011201220132020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

19.3%

Earnings CAGR (3Y)

34.8%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.46

15th of 16 SIC 3841 peers (best = lowest)

Current ratio

1.73×

15th of 17 SIC 3841 peers

Quick ratio

1.66×

Net cash

$2.87B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.08B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.29

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.4%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20092020
Hypergrowth