Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating DexCom (NASDAQ:DXCM) in relation to its major competitors in the Health Care Equipment & Supplies industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in the industry.
DexCom Background Dexcom designs and commercializes continuous glucose monitoring systems for diabetic patients. CGM systems serve as an alternative to the traditional blood glucose meter process, and the company is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| DexCom Inc | 97.62 | 15.13 | 11.17 | 5.53% | $0.29 | $0.62 | 26.69% |
| Stryker Corp | 38.17 | 5.91 | 5.32 | 4.31% | $1.23 | $3.18 | 11.2% |
| Medtronic PLC | 26.04 | 1.83 | 2.98 | 1.54% | $2.02 | $5.07 | 4.49% |
| Becton Dickinson & Co | 45.71 | 2.83 | 3.80 | 1.52% | $1.16 | $2.1 | 5.11% |
| Edwards Lifesciences Corp | 27.23 | 5.80 | 6.70 | 5.91% | $0.46 | $1.13 | 12.27% |
| IDEXX Laboratories Inc | 42.35 | 30.31 | 9.54 | 23.18% | $0.32 | $0.57 | 9.65% |
| GE HealthCare Technologies Inc | 18.43 | 4.26 | 1.59 | 6.06% | $0.86 | $1.94 | 7.43% |
| Zimmer Biomet Holdings Inc | 43.50 | 1.76 | 3.05 | 1.71% | $0.57 | $1.34 | 4.93% |
| ResMed Inc | 22.96 | 4.89 | 4.76 | 5.24% | $0.34 | $0.6 | 16.0% |
| Steris PLC | 173.54 | 3.36 | 4.12 | 2.02% | $0.33 | $0.57 | 11.07% |
| Hologic Inc | 33.93 | 3.13 | 4.10 | -0.77% | $0.12 | $0.37 | -1.83% |
| Insulet Corp | 147.19 | 16.70 | 6.36 | 5.17% | $0.06 | $0.26 | 32.43% |
| Teleflex Inc | 23.69 | 2.06 | 3.01 | 2.67% | $0.21 | $0.41 | 5.5% |
| ShockWave Medical Inc | 32.15 | 12.29 | 12.75 | 4.86% | $0.04 | $0.16 | 49.21% |
| Penumbra Inc | 254.87 | 6.89 | 7.86 | 1.81% | $0.02 | $0.17 | 25.51% |
| Masimo Corp | 38.09 | 3.28 | 2.01 | 1.19% | $0.06 | $0.22 | -19.46% |
| Envista Holdings Corp | 18.77 | 0.88 | 1.59 | 1.21% | $0.13 | $0.38 | 2.57% |
| Average | 61.66 | 6.64 | 4.97 | 4.23% | $0.5 | $1.15 | 11.0% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After examining DexCom, the following trends can be inferred:
- The Price to Earnings ratio of 97.62 for this company is 1.58x above the industry average, indicating a premium valuation associated with the stock.
- With a Price to Book ratio of 15.13, which is 2.28x the industry average, DexCom might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
- The Price to Sales ratio of 11.17, which is 2.25x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- The Return on Equity (ROE) of 5.53% is 1.3% above the industry average, highlighting efficient use of equity to generate profits.
- The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $290 Million, which is 0.58x below the industry average. This potentially indicates lower profitability or financial challenges.
- The gross profit of $620 Million is 0.54x below that of its industry, suggesting potential lower revenue after accounting for production costs.
- The company is experiencing remarkable revenue growth, with a rate of 26.69%, outperforming the industry average of 11.0%.
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In light of the Debt-to-Equity ratio, a comparison between DexCom and its top 4 peers reveals the following information:
- DexCom is positioned in the middle in terms of the debt-to-equity ratio compared to its top 4 peers.
- This suggests a balanced financial structure, where the company maintains a moderate level of debt while also relying on equity financing with a debt-to-equity ratio of 1.2.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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