DXCM

Dexcom Inc

Healthcare


Presented:10/03/2016
Price:$84.98
Cap:$7.10B
Current Price:$67.10
Cap:$26.89B

Presented

Date10/03/2016
Price$84.98
Market Cap$7.10B
Ent Value$6.52B
P/E RatioN/A
Book Value$2.94
Div Yield0%
Shares O/S83.60M
Ave Daily Vol856,624
Short Int5.89%

Current

Price$67.10
Market Cap$26.89B
DexCom, Inc. is a medical device manufacturing company. The company is focused on the design, development and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes and for use by healthcare providers in the hospital for the treatment of both diabetic and non-diabetic patients. Its products include Dexcom G4 PLATINUM System, Dexcom studio and Mobile apps. The company was founded by John F. Burd in May 1999 and is headquartered in San Diego, CA.

Publicly traded companies mentioned herein: Abbott Laboratories (ABT), Alphabet Inc (GOOGL), DexCom Inc (DXCM), Johnson & Johnson (JNJ), Medtronic PLC (MDT), Senseonics Holdings Inc (SENS)

Highlights

The presenter is bearish on the outlook for DexCom (DXCM), which is a pure play continuous glucose monitoring (CGM) medical technology. The diabetes market is large, and the concept of using CGM to reduce finger pricks and automate the delivery of insulin is sound; however, the recent approval of Medtronic's iPro2 should result in a market share shift that negatively impacts DXCM, and what he believes is a misperception about the market opportunity in type 2 diabetes. At over 14x trailing sales and nearly 12x expected full year 2016 sales, the stock is too expensive and he does not view a takeout as likely. If market penetration is slower than expected, the presenter reasons the stock could trade down over the next 12-18 months if/when it becomes apparent that revenue growth cannot meet lofty expectation.

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Idea Discussion

Commentor 1 - 2 weeks ago

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