DexCom Inc. (DXCM) Stock

DexCom Inc. trades at a P/E ratio of 53.06, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 36.76 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.21 indicates reasonable value when growth is considered.

With a beta of 1.44, DexCom Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 11.48 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

DexCom Inc. achieves a profit margin of 13.30%, meaning it retains $13.30 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 22.80% and ROA at 6.08%, the company generates strong returns on invested capital.

DexCom Inc.'s revenue grew by 15.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 27.40% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SURGICAL & MEDICAL INSTRUMENTS & APPARATUS industry averages for proper context.

DexCom Inc. has a market capitalization of $29.54B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 392.15M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SURGICAL & MEDICAL INSTRUMENTS & APPARATUS industry, it competes with other firms in this sector.

DexCom Inc.'s book value per share is $6.56, while the current stock price is $76.22, resulting in a price-to-book (P/B) ratio of 11.62. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

26 analysts cover DXCM with 85% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $102.08 implies 33.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 19 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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