DXCM : NASDAQ : Health Care
$75.23 | %
Today's Range: 75.195 - 76.12
Avg. Daily Volume: 850500.0
04/21/17 - 4:00 PM ET

Financial Analysis


DEXCOM INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 2.20 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 28.30% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)171.2130.8
EBITDA ($mil)-2.54.7
EBIT ($mil)-6.11.6
Net Income ($mil)-7.41.5


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)123.7115.2
Total Assets ($mil)402.8292.0
Total Debt ($mil)0.02.3
Equity ($mil)283.8221.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin70.2772.09
EBITDA Margin-1.463.59
Operating Margin-3.561.22
Sales Turnover1.421.38
Return on Assets-16.28-19.72
Return on Equity-23.11-26.03
Debt Q4 FY16 Q4 FY15
Current Ratio2.733.46
Debt/Capital0.00.01
Interest Expense0.30.0
Interest Coverage-20.330.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)84.681.7
Div / share0.00.0
EPS-0.090.02
Book value / share3.352.71
Institutional Own % n/a n/a
Avg Daily Volume856407.01610624.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 22.63 indicates a significant premium versus the S&P 500 average of 2.99 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 44.36   DXCM 114.26 Peers 26.92

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 474.38 Peers 32.13   DXCM NA Peers 1.15

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 22.63 Peers 4.93   DXCM -6.84 Peers 99.98

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 11.20 Peers 4.94   DXCM 42.61 Peers 14.96

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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