This is a step-by-step stock review to answer the question, is Dexcom (DXCM) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Dexcom (DXCM) stock a good buy?
1. Dexcom Company History
- Founded: 1999 by Dr. Clive Pearson and Dr. Steven Pacelli.
- Specialization: Develops continuous glucose monitoring (CGM) systems for diabetes management.
- Initial Product: Launched its first CGM system, the Dexcom STS, in 2006.
- Advancements: Released the Dexcom G4 Platinum in 2012 and the G6 in 2018, offering improved accuracy and ease of use.
- Growth: Expanded globally, becoming a leader in CGM technology with strong partnerships in the diabetes care industry.
- Innovation: Continues to innovate with next-generation technology and integration with other health devices and platforms.
- Public Listing: Went public in 2005 under the ticker symbol DXCM.
- Headquarters: Located in San Diego, California.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 61
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Dexcom makes money:
- Product Sales: Generates revenue by selling continuous glucose monitoring (CGM) systems and related supplies to individuals and healthcare providers.
- Sensor Revenue: Earns income from the sale of glucose sensors, which are a core component of its CGM systems.
- Receiver Revenue: Makes money from the sale of devices that receive and display glucose data from sensors.
- Software and Services: Provides software and data management services, including cloud-based data platforms and mobile applications, often as part of a subscription model.
- Partnerships: Receives payments from partnerships and collaborations with other companies in the healthcare and diabetes management sectors.
- Reimbursement: Benefits from insurance reimbursements and healthcare coverage for its products, which helps drive sales.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Dexcom stacks up against other companies.
- Bruker Corporation.(BRKR) – 89
- Quipt Home Medical Corp.(QIPT) – 89
- Viemed Healthcare, Inc.(VMD) – 84
- Insulet Corporation.(PODD) – 78
- Tactile Systems Technology, Inc.(TCMD) – 78
- DexCom, Inc.(DXCM) – 61
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Appointment (2015): Sayer became CEO in 2015, leading DexCom through a period of rapid growth and innovation in continuous glucose monitoring (CGM) technology.
- Product Innovation: He oversaw the launch of groundbreaking products like the Dexcom G6 and G7 CGM systems, which set new standards in accuracy, ease of use, and integration with other health technologies.
- Global Expansion: Sayer led DexCom’s expansion into international markets, significantly increasing the company’s global footprint and access to diabetes patients worldwide.
- Partnerships and Collaborations: He fostered key partnerships with technology companies like Apple and Google, integrating DexCom’s CGM systems with consumer tech and health platforms, enhancing user experience and broadening market reach.
- Financial Performance: Under his leadership, DexCom experienced significant revenue growth, driven by increased adoption of its CGM technology, positioning the company as a leader in the diabetes care industry.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Dexcom (DXCM) is 83/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Dexcom (DXCM) stock a good buy?
Some of the top questions investors can have is Dexcom (DXCM) stock a good buy or should I buy Dexcom (DXCM) stock?
Dexcom (DXCM) is a strong investment due to its leadership in continuous glucose monitoring (CGM) technology. Under CEO Kevin R. Sayer, Dexcom has introduced groundbreaking products like the G6 and G7 systems, which are praised for their accuracy and user-friendliness. The company has expanded globally and forged key partnerships with tech giants, enhancing its market position. Dexcom’s focus on innovation and growing demand for diabetes management solutions drive significant revenue growth. However, potential risks include competition from other health tech companies and regulatory changes. Overall, Dexcom’s market leadership and technological advancements make it a compelling investment opportunity, with a focus on the company’s strong growth trajectory and product innovation.
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To truly know if Dexcom is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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