DXCM : NASDAQ : Health Care
$92.09 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 939,900
08/23/16 - 4:00 PM ET

Financial Analysis


DEXCOM INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DEXCOM INC is extremely liquid. Currently, the Quick Ratio is 2.56 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 44.34% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)137.393.2
EBITDA ($mil)-16.2-1.0
EBIT ($mil)-20.1-3.6
Net Income ($mil)-20.2-3.7


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)115.697.5
Total Assets ($mil)332.8218.4
Total Debt ($mil)6.03.5
Equity ($mil)246.4170.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin65.1173.61
EBITDA Margin-11.79-1.07
Operating Margin-14.64-3.86
Sales Turnover1.471.46
Return on Assets-24.15-9.38
Return on Equity-32.62-12.0
Debt Q2 FY16 Q2 FY15
Current Ratio3.263.86
Debt/Capital0.020.02
Interest Expense0.10.1
Interest Coverage-201.0-36.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)83.880.0
Div / share0.00.0
EPS-0.24-0.05
Book value / share2.942.13
Institutional Own % n/a n/a
Avg Daily Volume947131.0812240.0

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 30.92 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 4.88. 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 43.46   DXCM 154.14 Peers 28.67

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 324.64 Peers 24.34   DXCM NA Peers 0.83

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 30.92 Peers 4.88   DXCM -250.00 Peers 19.39

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.

 

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

However, DXCM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DXCM 15.56 Peers 14.87   DXCM 53.30 Peers 21.00

Average. 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 valuation on par with its industry on this measurement.

 

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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