QualityDipStocks / Health Care · Medical instruments
DexCom DXCM
Not in a dip by our rules: 11% below its 52-week high.
A quality company trading near our fair value estimate.
- Fair value est.
- $88.35+7%
- Market Value
- forming
- Off 52-wk high
- −11%
- Risk vs market
- Lowbeta 0.58
5 bullish · 3 bearish See why
Key levels
Every level vs today’s $82.29
- 52-wk lowlowest close, 1 year$54.84−33.4%
- PriceFri Oct 30 close$82.29you are here
- Fair value est.base case$88.35+7.4%
- 52-wk highhighest close, 1 year$92.34+12.2%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 15.0% ±2 points. Bear = 10.5% and 13.0%; bull = 8.5% and 17.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, DXCM’s free cash flow would need to grow about 14% a year for five years; our estimate uses 15%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much DXCM moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 3.1× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.58
- Volatility
- 40% vs 13% SPY
- Correlation SPY
- 0.18
- Correlation QQQ
- 0.10
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationP/E of 31.8× is 48% below its own average of 60.7× at the last 3 fiscal year-ends.
GrowthDiluted EPS grew 47% to $2.09 in FY2025.
Cash returnsShare count down 5.9% in a year: $1.3B of buybacks over 12 months.
ProfitabilityReturn on equity of 38% over the last 12 months, up 4 points in two years.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 3 of 5
ProfitabilityGross margin narrowed to 60.1% in FY2025 from 63.2% in FY2023 (SEC filings).
ValuationPrice / book of 12.4×, above the 5.2× median for the 93 Health Care companies we cover.
ValuationFree-cash-flow yield of 3.5%, below the 4.0% median for the 102 Health Care companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on DexCom in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Medical instruments
All fundamentals
P/E 31.8 · FCF yield 3.5% · ROE 38%
Valuation
- P/E
- 31.8×3-yr-end avg 60.7× · Health Care median 29.2×
- Price / FCF
- 28.7×
- FCF yield
- 3.5%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 6.18×
- Price / book
- 12.45×
- Market cap
- $31.6Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $5.1B
- Sales growth, 12 months
- +13.0%vs the 12 months before
- Sales growth, 3 yrs
- +17.0%/yrfrom FY2022
- Diluted EPS, 12 months
- $2.54
- EPS growth, last FY
- +47.2%
- Net income, 12 months
- $991M
- Net income growth
- +38%12 months vs before
Profitability
- Gross margin
- 63.4%
- Operating margin
- 24.0%
- Net margin
- 19.4%
- FCF margin
- 21.5%
- Return on equity
- 38%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $961M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 91.3×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.1B
- FCF growth, 12 months
- +3%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $1.3B4.2% of market cap
- Share count, 1 year
- −5.9%diluted shares vs a year ago
- Stock-based comp
- $154M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From DexCom’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $88.35 · FCF value $117.85
Assumes 15.0% growth for 5 years (revenue grew 17.0% a year FY22–FY25; capped at 15%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $2.86 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 29, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 48 · 5 days +5.6%
The business
FCF $1.7B · Sales +11%
- Free cash flow, 12 months$1.7B
- Free-cash-flow yield5.7%
- Free-cash-flow margin34%
- Gross margin63%
- Operating margin24%
- Return on invested capital26%
- Return on equity36%
- Sales growth (latest quarter vs year-ago quarter)+11%
- Net debt / EBITDA0.3×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when DXCM fires a reversal signal
One text when a published rule fires on DXCM or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.