Dexcom Intrinsic Value Calculation – DEXCOM Poised for Accelerated Growth Ahead
May 25, 2023
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DEXCOM ($NASDAQ:DXCM) is a medical device manufacturer that specializes in the production of continuous glucose monitoring (CGM) systems and other diabetes management solutions. With an innovative product line and strong market presence, the company is poised for accelerated growth in the future. Growth for DexCom is likely to pick up speed from here, as there is an increasing demand for CGM systems and other diabetes management solutions due to the growing prevalence of the disease. In addition to this, the company has recently unveiled a number of new products that have the potential to further enhance its market share. With its strong research and development capabilities, DexCom is well-positioned to capitalize on these opportunities and continue its growth trajectory.
In addition, DexCom has also been investing heavily in digital health solutions, which are expected to make a significant impact on the company’s revenue in the coming years. Its strategic partnerships with major medical device manufacturers and healthcare providers are also expected to contribute to its growth prospects. With all these factors in place, DexCom appears to be in a good position to continue its growth momentum into the future.
Stock Price
DEXCOM is poised for accelerated growth ahead. On Wednesday, the stock opened at $114.9 and closed at $116.7, up by 0.9% from its last closing price of $115.7. This suggests that investor sentiment is positive for DEXCOM, indicating potential for increased growth in the future. The positive market reaction to the company’s performance is further evidence that DEXCOM is well-positioned to experience accelerated growth in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dexcom. More…
| Total Revenues | Net Income | Net Margin |
| 3.02k | 292.5 | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dexcom. More…
| Operations | Investing | Financing |
| 753.9 | -296.4 | -546.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dexcom. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.52k | 3.28k | 5.76 |
Key Ratios Snapshot
Some of the financial key ratios for Dexcom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.6% | 27.8% | 14.5% |
| FCF Margin | ROE | ROA |
| 13.8% | 12.5% | 5.0% |
Analysis – Dexcom Intrinsic Value Calculation
GoodWhale has conducted an in-depth analysis of the fundamentals of DEXCOM. After analyzing the data, our proprietary Valuation Line has calculated that the fair value of DEXCOM shares should be around $134.3. However, currently, it is traded at $116.7, meaning it is undervalued by 13.1%. This presents an opportunity for savvy investors to buy DEXCOM stock at a lower than fair price. More…
Peers
The company was founded in 1999 and is headquartered in San Diego, California. DexCom has a market cap of $15.8 billion as of May 2020. The company’s competitors include Abbott Laboratories, Insulet Corp, and Medtronic PLC.
– Abbott Laboratories ($NYSE:ABT)
Abbott Laboratories is a publicly traded healthcare company with a market capitalization of $173.42 billion as of 2022. The company’s return on equity is 16.7%. Abbott Laboratories is a diversified healthcare company that develops and manufactures a wide range of products and services for the treatment of various medical conditions. The company’s product portfolio includes pharmaceuticals, diagnostics, medical devices, and nutritional products. Abbott Laboratories has a strong presence in both developed and emerging markets.
– Insulet Corp ($NASDAQ:PODD)
Insulet Corporation is a medical device company that manufactures and sells insulin delivery systems for people with diabetes. The company was founded in 2000 and is headquartered in Massachusetts, United States. Insulet Corporation has a market capitalization of 20.48 billion as of 2022 and a return on equity of 8.72%. The company’s products include the OmniPod insulin pump, the PodderPrep insulin pump starter kit, and the mylife Pods insulin pump cartridges.
– Medtronic PLC ($NYSE:MDT)
Medtronic PLC is a medical device company that focuses on providing treatments for cardiovascular diseases, diabetes, and neurological disorders, among others. As of 2022, the company has a market cap of 105.39B and a return on equity of 7.49%. Medtronic PLC is headquartered in Dublin, Ireland.
Summary
DEXCOM is a medical device company which specializes in the development of continuous glucose monitoring systems and other diabetes management products. The company has recently seen strong revenue growth, and analysts believe this momentum should continue to accelerate in the near future. Analysts are bullish on DEXCOM’s prospects due to their strong track record of product innovation, their large and growing customer base, and the favorable trends in the diabetes market, which includes an aging population and increased prevalence of diabetes. DEXCOM’s stock is rated as a “Buy” by most analysts, and investors should consider adding it to their portfolio to benefit from the expected growth.
