# DexCom, Inc. (DXCM) — Stock CV

DexCom, Inc. is a $31.7B healthcare company. Revenue grew 15.5% over the last year, it keeps 20¢ of every dollar of sales as profit, and its net debt equals ~0.3 years of free cash flow. It trades at 31.7× earnings — near the lowest of its own history.

> DexCom designs and commercializes continuous glucose monitoring systems for diabetic patients. CGM systems serve as an alternative to the traditional blood glucose meter process, and the company is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery.

## Identity

- **Ticker**: DXCM
- **Sector**: Healthcare
- **Industry**: Surgical & Medical Instruments & Apparatus
- **Headquarters**: SAN DIEGO, CA
- **Employees**: 11 100
- **Website**: https://www.dexcom.com
- **Market cap**: $31.7B
- **Last price**: $84.11
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $4.97B
- **Net income**: $1000M
- **Free cash flow**: $1.41B
- **Net debt**: $479M
- **P/E**: 31.7
- **Revenue growth (YoY)**: 15.5%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 61 |
| Growth | 77 |
| Profitability | 95 |
| Health | 88 |
| Quality | 84 |
| Moat | 56 |

## Qualifications (beginner checklist) — 10 of 10 passed

- [x] Revenue growing — +15.5% YoY
- [x] Profitable — $1000M TTM
- [x] Profit growing — +37.2% YoY
- [x] Generates cash — $1.41B TTM
- [x] Debt under control — ~0.3y of cash flow to repay
- [x] Established company — $31.7B market cap
- [x] Not printing shares — +4.0% shares over ~5y
- [x] Proven track record — 7/10 profitable years
- [x] Financially stable — Altman Z 6.8 — safe
- [x] Valuation not extreme — P/E 31.7

## Experience (career milestones)

- **FY2025** — Best year on record: $836M net income
- **Apr 20, 2020** — Dexcom became a component of the Nasdaq-100, replacing American Airlines Group in the index
- **FY2019** — Turned profitable: $101M net income after a loss year
- **FY2018** — Revenue crossed $1B: $1.03B for the year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2012** — Dexcom's first G-series CGM, the G4 Platinum, received a CE mark and FDA approval in 2012 for adults ages 18 and over
- **2005** — Dexcom went public in 2005 and is listed on the Nasdaq Global Select Market stock exchange under the ticker symbol DXCM
- **1999** — Dexcom was founded in 1999 by Scott Glenn, John Burd, Lauren Otsuki, Ellen Preston and Bret Megargel

## Strengths

- High gross margin (64.3%)
- Strongly profitable — 20.1% net margin
- Revenue growing 15.5% year over year
- Strong cash conversion — FCF is 28.3% of revenue
- Interest covered 978.0× by operating earnings

## Watch-outs

- Loss-making in 3 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.45B | $155M | $53.3M |
| FY2022 | $2.91B | $341M | $305M |
| FY2023 | $3.62B | $542M | $512M |
| FY2024 | $4.03B | $576M | $631M |
| FY2025 | $4.66B | $836M | $1.08B |

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Source: https://stockcv.com/DXCM — derived from company filings; may be delayed or incomplete. Information, not investment advice.