DexCom may be overvalued with mixed growth prospects, but the 19 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $110.0 to $150.0 per share, for an average of $132.22. At today's price of $117.19, DexCom is trading -11.37% away from its average target price, suggesting there is an analyst consensus of some upside potential.
DexCom, Inc. is a company that develops, manufactures, and distributes continuous glucose monitoring (CGM) systems for diabetes management. The large-cap Basic Materials company is based in San Diego, CA.
DexCom has a trailing twelve month P/E ratio of 142.91, compared to an average of 10.03 for the Basic Materials sector. Based on its EPS guidance of 1.44, the company has a forward P/E ratio of 81.38.
DexCom is likely overvalued compared to its book value, since its P/B ratio of 24.66 is higher than the sector average of 2.08. The company's shares are currently trading 704.32% above their Graham number, implying that they are overvalued in terms of earnings and book value.
If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its strong cash flows. They might also believe that DexCom's positive margin growth trend will continue.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,397 | $1,822 | $2,334 | $2,889 |
| Revenue Growth | n/a | 30.48% | 28.05% | 23.8% |
| Gross Margins | 66.69% | 70.24% | 72.01% | 65.18% |
| Gross Margins Growth | n/a | 5.32% | 2.52% | -9.48% |
| Operating Margins | 10.19% | 16.43% | 11.39% | 13.54% |
| Operating Margins Growth | n/a | 61.24% | -30.68% | 18.88% |
| Earnings Per Share | $1.1 | $5.72 | $2.24 | $0.88 |
| EPS Growth | n/a | 420.0% | -60.84% | -60.71% |
| Diluted Shares (MM) | 92 | 96 | 97 | 386 |
| Free Cash Flow (MM) | $134 | $277 | $53 | $305 |
| FCF Growth | n/a | 105.65% | -80.73% | 471.67% |
| Capital Expenditures (MM) | $180 | $199 | $389 | $365 |
| Net Debt / EBITDA | 3.79 | 2.73 | 2.4 | 5.02 |
