Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Dexcom Inc

DXCM · Nasdaq · Healthcare

Fundamental quality

ATTRACTIVE

87

out of 100

Dexcom Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 38.1%) with wide margins (net margin 20.1%) and a business that keeps growing (18.8% a year). On fundamental quality it scores 87 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +18.8%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Dexcom makes continuous glucose monitors: a body-worn sensor that reads blood sugar every few minutes and sends it to the phone, freeing diabetics from finger pricks. It races head-to-head with Abbott's Libre for a huge, growing market.

What will shape its future

  • Expansion beyond type 1 diabetes: type 2, prediabetes and even wellness users.
  • The duopoly with Abbott — a race of pricing, insurance coverage and sensor convenience.
  • Weight-loss drugs' effect on diabetes, the big debate over its future market.

Breakdown by area

I.Growth
74

EPS growth: 12.4% · Revenue growth: 18.8%

II.Profitability
91

Net margin: 20.1% · ROE: 38.1% · ROIC: 58.7%

III.Financial health
95

Net debt/EBITDA: -0.79x · FCF: 28.3%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 80%
ROEbeats 82%
Growthbeats 88%
Cash generationbeats 91%
Less debtbeats 91%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Dexcom Inc strengths

  • Excellent free-cash-flow generation (FCF margin of 28.3%): profit turns into real cash.
  • Outstanding return on equity (ROE of 38.1%): it puts shareholder capital to good use.
  • High gross margin (62.5%), pointing to pricing power.
  • Revenue growing (18.8% annualized).

Dexcom Inc risks and weaknesses

  • Shrinking margins: net margin has fallen from 29% to 18% in recent years.

Dexcom Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20201,927550277-818
20212,44921753-1,053
20222,910341305-642
20233,622542512-566
20244,033576631-606
20254,6628361,077-918

Between 2020 and 2025, revenue went from $1,927M to $4,662M (+142%) and net income went from $550M to $836M (+52%). Meanwhile, its margins have narrowed (from 29% to 18%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+14%
  • Net income+57.3%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score8687
  • Net margin19.3%20.1%
  • ROE31.5%38.1%
  • FCF margin29.7%28.3%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Dexcom Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Dexcom Inc a good company to invest in?

In terms of business quality, Dexcom Inc scores 87 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Dexcom Inc a profitable company?

Very. Dexcom Inc shows a net margin of 20.1% and an ROE of 38.1%, typical of a highly profitable business.

Does Dexcom Inc have a lot of debt?

No. Dexcom Inc has a net cash position: more cash than debt.

Is Dexcom Inc growing?

Its revenue has grown 18.8% annualized in recent years and its earnings per share 12.4%, and without interruption since 2020.

Does Dexcom Inc generate cash?

Yes. It converts about 28.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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