DexCom, Inc. (DXCM) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Healthcare · Medical Devices
Is DexCom, Inc. a safe investment right now?
DexCom, Inc.'s Altman Z-Score of 6.29 places it in the safe zone. Our fair value estimate is $58.05 (Fairly Valued). Moat rating: 3.1/5 stars.
Could DexCom, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 6.29 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives DXCM's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.2982 | 1.2 | 0.36 |
| B · Retained Earnings / Total Assets | RE / TA | 0.3839 | 1.4 | 0.54 |
| C · EBIT / Total Assets | EBIT / TA | 0.1746 | 3.3 | 0.58 |
| D · Market Cap / Total Liabilities | MCap / TL | 6.8083 | 0.6 | 4.08 |
| E · Revenue / Total Assets | Rev / TA | 0.7353 | 1.0 | 0.74 |
How has DXCM's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 5.83 | Safe |
| 2023 | 5.24 | Safe |
| 2024 | 4.94 | Safe |
| 2025 | 6.29 | Safe |
Source: Calculated from DXCM's latest 10-K filing on SEC EDGAR.
What is DexCom, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $2.25 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $2.09 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.49 | 24 analysts consensus |
| Trailing P/E | 30.3x | Current market pricing |
| Fair P/E (β discount) | 25.8x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $86.88 (24 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does DexCom, Inc. have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up DXCM's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is DXCM's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 10.0% | — |
| 2023 | 16.2% | Rising |
| 2024 | 16.0% | Stable |
| 2025 | 27.8% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is DexCom, Inc.'s dividend safe?
DexCom, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $4.7B | $4.0B | $2.9B | Rising |
| Net Income | $0.8B | $0.6B | $0.3B | Rising |
| Free Cash Flow | $1.1B | $0.6B | $0.3B | Rising |
| Gross Margin | 60.1% | 60.5% | 64.7% | Declining |
Recent events that affect our DXCM analysis
DXCM earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.47. Revenue estimate: $1.17B. Our current Fair Value: $58.05 — a significant beat or miss could shift this estimate.
DXCM analyst consensus: 89% bullish (24 of 27 analysts)
4 Strong Buy, 20 Buy, 2 Hold, 0 Sell, 1 Strong Sell. Consensus target: $86.88 (37.0% upside). Compare with our independent Fair Value: $58.05.
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM beat EPS estimates by 4.5%
Reported EPS: $0.68 vs estimate $0.65. Earnings strength supports our Fair Value of $58.05 (8.5% below current price).
DXCM filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM beat EPS estimates by 7.5%
Reported EPS: $0.61 vs estimate $0.57. Earnings strength supports our Fair Value of $58.05 (8.5% below current price).
DXCM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM beat EPS estimates by 8.2%
Reported EPS: $0.48 vs estimate $0.44. Earnings strength supports our Fair Value of $58.05 (8.5% below current price).
DXCM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM missed EPS estimates by 2.6%
Reported EPS: $0.32 vs estimate $0.33. Our Fair Value of $58.05 may face downward pressure if the trend continues.
DXCM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DXCM missed EPS estimates by 21.1%
Reported EPS: $0.38 vs estimate $0.48. Our Fair Value of $58.05 may face downward pressure if the trend continues.
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DXCM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about DexCom, Inc.
What is DexCom, Inc. stock price today?
DexCom, Inc. (DXCM) stock price is $63.41 as of the latest market close, traded on the NASDAQ exchange.
What does DexCom, Inc. do?
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems for the management of diabetes and metabolic health in the United States and internationally. It offers Dexcom G7 and G7 15 Day, an integrated continuous glucose monitoring system; Dexcom G6, a CGM system; Dexcom ONE+ to replace fingerstick blood glucose testing for diabetes treatment decisions; Stelo, a biosensor designed for adults with prediabetes and Type 2 diabetes who do not use insulin; Dexcom Share, a remote monitoring system; and Dexcom Follow application. It markets its products directly to endocrinologists, physicians, and diabetes educators.
What is DexCom, Inc. market cap?
DexCom, Inc. has a market capitalization of $24.47B, classifying it as a large-cap stock in the Healthcare sector.
What sector and industry is DXCM in?
DexCom, Inc. operates in the Healthcare sector, specifically within the Medical Devices industry. It trades on the NASDAQ under the ticker symbol DXCM.
Is DXCM stock overvalued or undervalued?
Based on our valuation model, DexCom, Inc. trades 9.2% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $58.05
- Current Price: $63.41
- Valuation Zone: Fairly Valued
What is DXCM stock forecast and analyst target price?
Based on 24 Wall Street analysts, the consensus price target for DexCom, Inc. is $86.88, implying upside of 37.0% from the current price.
- Analyst High Target: $112.00
- Analyst Low Target: $72.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is DexCom, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for DexCom, Inc.:
- Revenue growth (current year est.): 12.1%
- EPS growth (current year est.): 19.3%
- Revenue growth (next year est.): 12.4%
- EPS growth (next year est.): 19.9%
What are DexCom, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $4.7B | Rising |
| Net Income | $0.8B | Rising |
| Free Cash Flow | $1.1B | Rising |
| Gross Margin | 60.1% | Declining |
What is DXCM's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 30.3x
- Forward P/E (next 12 months est.): 21.2x
- FairValueLabs Fair P/E: 25.8x
How volatile is DXCM stock?
DexCom, Inc. has a beta of 1.56, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does DexCom, Inc. have?
DexCom, Inc.'s balance sheet shows:
- Total Cash: $2.00B
- Total Debt: $1.40B
- Net Cash Position: $602.3M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is DexCom, Inc.'s free cash flow?
DexCom, Inc. generated $719.5M in trailing twelve-month free cash flow (from $1.44B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does DexCom, Inc. pay a dividend?
DexCom, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is DexCom, Inc. at risk of going bankrupt?
DexCom, Inc.'s Altman Z-Score is 6.29, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does DexCom, Inc. have a durable competitive advantage?
DexCom, Inc. scores 3.1/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 2/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is DXCM's return on equity (ROE)?
DexCom, Inc.'s return on equity is 34.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy DXCM stock?
DXCM shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol DXCM
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is DXCM a value stock or speculative?
FairValueLabs classifies DexCom, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of DexCom, Inc.?
The current CEO of DexCom, Inc. is Mr. Jacob Steven Leach.
What is DXCM's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.09
- Forward EPS (next 12 months est.): $2.99
- Analyst consensus EPS (this year): $2.49
- Analyst consensus EPS (next year): $2.99
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
DXCM analysis methodology: How we calculate fair value, Z-Scores, and moat ratings