D/E 0.47 — near the Healthcare debt median (≈60th pctile)
P/E31.3xB
P/E 31.3 — near the Healthcare median (≈60th pctile)
PEG1.35B
PEG 1.35 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 83.1
Quality0.88
Growth0.95
Value0.68
Why this score
Durable high returns
Entry · Margin of safety
52-week rangeMid-range
19% off the 12-month high
vs DCF fair value29% aboveest. fair value ~$56
Quality signals · context only
Gross profitability45% · A-gross profit ÷ total assets (Novy-Marx)
ROIC27.6% · Areturn on invested capital — not score-weighted
Why now
DexCom is a compelling growth story, poised to compound capital at a high rate by expanding its continuous glucose monitoring (CGM) systems beyond traditional insulin users into the massive prediabetes and non-insulin dependent Type 2 diabetes markets with products like Stelo. This strategic expansion underpins its robust 15.6% revenue growth and exceptional 31.5% Return on Equity, demonstrating efficient capital deployment and market capture. The crux of the thesis rests on DXCM's ability to successfully penetrate these broader patient populations, sustaining its impressive 19.3% profit margin as it scales.
Moat
DXCM's durable edge stems from its technological leadership and established ecosystem within the CGM market, particularly with its integrated Dexcom G7 and G6 systems, which create significant switching costs for patients and clinicians. The company's impressive 31.5% Return on Equity is a direct result of its pricing power and category leadership, reinforced by intellectual property and regulatory hurdles that protect its core offerings. Furthermore, the Dexcom Share remote monitoring system and Follow application deepen engagement, making its solutions sticky and difficult for competitors to replicate quickly.
Risk
The primary bear case against DXCM centers on its elevated valuation and the increasing competitive landscape in the broader metabolic health market. With a P/E of 31.8 and a PS of 5.9 against a 15.6% revenue growth rate, the market is pricing in significant future growth, leaving little room for error. Furthermore, its beta of 1.45 indicates high sensitivity to market downturns, and any deceleration in the adoption of new products like Stelo or increased pricing pressure from emerging competitors could compress margins. A sustained decline in revenue growth rates below current levels would confirm the bear case and challenge the bull thesis.
Horizon
1-3 yr $85.24 (25-analyst consensus) — fundamentals + valuation re-rating. 5 yr $124.80 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $185.13 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · DXCM
$
%
%
Shares to buy
27
Position size
$1,972
3.9% of portfolio
Stop price
$54.77
25% below $73.02
$ at risk if stopped
$492.88
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
DexCom, Inc. (DXCM): score, valuation & FAQ
DexCom, Inc. (DXCM) is a Medical Devices company that scores 83.1 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (B+). On valuation, DXCM sits about 29% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is DXCM a good stock to buy?
Bull Rankings scores DXCM 83.1 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (B+). A score is a quantitative screen of DexCom, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DXCM score 83.1 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DXCM earns its highest marks on Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DXCM overvalued or undervalued?
Based on $73.02, DXCM sits about 29% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 31.3x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in DXCM?
The primary bear case against DXCM centers on its elevated valuation and the increasing competitive landscape in the broader metabolic health market. With a P/E of 31.8 and a PS of 5.9 against a 15.6% revenue growth rate, the market is pricing in significant future growth, leaving little room for error. Furthermore, its beta of 1.45 indicates high sensitivity to market downturns, and any deceleration in the adoption of new products like Stelo or increased pricing pressure from emerging competitors could compress margins. A sustained decline in revenue growth rates below current levels would confirm the bear case and challenge the bull thesis.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.