Stock Analysis on Net

DexCom Inc. (NASDAQ:DXCM)

$22.49

This company has been moved to the archive! The financial data has not been updated since October 26, 2023.

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

DexCom Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of DexCom Inc. Annual Report.


Share Price Trend
The share price shows a volatile pattern initially, with a decline from $4.25 in 2006 to a low of $0.82 in 2009. Following this period, there is a general upward trend from 2010 onwards, peaking sharply in 2021 at $102.55. After a slight dip in 2022 to $101.75, the price recovers modestly to $107.24 in 2023. Overall, the share price experienced substantial growth over the long term, particularly in the last decade.
Earnings Per Share (EPS) Trend
EPS remained negative from 2006 through 2019, indicating consistent losses during this period. Losses gradually decreased from -$0.30 in 2006 to a minimum of -$0.07 in 2014 but then showed some fluctuations with losses increasing again around 2019 (-$0.35). Notably, in 2020, the company reported a positive EPS of $0.28, followed by a significant increase to $1.28 in 2021. EPS fluctuated in 2022 and 2023, with values of $0.40 and $0.88 respectively, suggesting the company turned profitable and began to achieve earnings growth in recent years.
Price-to-Earnings (P/E) Ratio Analysis
P/E data is available only from 2020 onwards, coinciding with the company turning profitable. The P/E ratio exhibited high volatility, starting at 228.49 in 2020, dropping to 79.93 in 2021, then spiking to 255.37 in 2022 before falling again to 121.45 in 2023. These elevated P/E ratios indicate investor expectations of high future growth, although the variability also reflects market uncertainty or earnings fluctuations.
Overall Insights
The company's financial trajectory illustrates a turnaround from prolonged losses to profitability starting in 2020. The share price appreciation is consistent with this recovery, showing strong investor confidence particularly from 2013 onward and accelerating post-2019. Despite profitability, the high and fluctuating P/E ratios imply that valuation remains sensitive to market sentiment and earnings performance. The data suggests the company is in a growth phase but still subject to substantial market dynamics affecting its valuation metrics.

Comparison to Competitors

DexCom Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Health Care Equipment & Services)

DexCom Inc., P/E, long-term trends, comparison to sector (health care equipment & services)

Microsoft Excel

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)