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DexCom Inc
DXCM : NASDAQ : Health Care
$54.94 0.99 | 1.84%
Today's Range: 53.96 - 55.50
Avg. Daily Volume: 657,500
12/24/14 - 1:00 PM ET

Financial Analysis


DEXCOM INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. DEXCOM INC is extremely liquid. Currently, the Quick Ratio is 2.62 which clearly shows the ability to cover any short-term cash needs. DXCM managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 53.94% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)69.042.9
EBITDA ($mil)-3.7-4.1
EBIT ($mil)-5.9-5.8
Net Income ($mil)-5.2-6.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)74.947.6
Total Assets ($mil)159.4110.1
Total Debt ($mil)5.27.0
Equity ($mil)115.074.7


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin71.5968.3
EBITDA Margin-5.36-9.55
Operating Margin-8.55-13.52
Sales Turnover1.421.29
Return on Assets-16.49-32.4
Return on Equity-22.86-47.76
Debt Q3 FY14 Q3 FY13
Current Ratio3.042.98
Debt/Capital0.040.09
Interest Expense0.20.2
Interest Coverage-29.5-29.0


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)76.471.7
Div / share0.00.0
EPS-0.08-0.08
Book value / share1.511.04
Institutional Own % n/a n/a
Avg Daily Volume648571.0683812.0

Valuation


SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 37.77 indicates a significant premium versus the S&P 500 average of 2.76 and a significant premium versus the industry average of 4.93. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DEXCOM INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DXCM NM Peers 39.49   DXCM 218.70 Peers 40.18

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

DXCM's P/E is negative making this valuation measure meaningless.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DXCM is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DXCM 1895.00 Peers 28.41   DXCM NA Peers 1.03

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

DXCM's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DXCM 37.77 Peers 4.93   DXCM 24.00 Peers 19.56

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DXCM is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DXCM is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DXCM 19.17 Peers 5.71   DXCM 60.06 Peers 7.34

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DXCM is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DXCM has a sales growth rate that significantly exceeds its peers.

 

 

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