DexCom, Inc. (DXCM)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach DexCom as a durable medical-device franchise rather than a speculative story. It sells continuous glucose monitoring systems used in diabetes and metabolic health, a recurring-use category where integrated sensors and software can create sticky customer habits. Its moat rests on those integrated CGM systems and the recurring data/software relationship. The filed record supports quality: in fiscal 2025, the year ended 2025-12-31, revenue was $4.7B, net income $836.3M, and diluted EPS $2.09, up from $4.0B revenue, $576.2M net income, and $1.42 EPS in fiscal 2024. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.3B and net income $249.1M, or $0.64 diluted EPS. FairStock's calculations show a 38.49% ROE, 10.33% ROCE, debt-to-equity of 0.53, Piotroski 7/9, and Altman Z-score 5.91, so the balance sheet and profitability look solid, though ROCE is less impressive than ROE. Free cash flow was $1.4B, a 4.7% FCF yield. The problem is price. At the 2026-10-26 close of $78.57, FairStock reports P/E 31.06, P/B 11.31, EV/EBITDA 19.05, PEG 0.80, and a Graham Number of $19.89, leaving a negative -291.86% margin of safety. The business is growing and cash-generative, but the market is already paying richly for that record. I would call it a good company whose current price leaves little room for error.

In plain English: DexCom makes continuous glucose monitoring systems that people with diabetes and metabolic health needs use to track glucose. The business looks strong: sales and profits have been growing, and it generates a lot of cash. At the 2026-10-26 close of $78.57, however, the price looks expensive compared with the company's reported profits and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer