Stock fact sheet · data as of
DexCom, Inc. (DXCM): fair value, margin of safety and Wheel Score
Healthcare · Medical - Devices · United States · High Growth
Is DXCM undervalued?
DexCom, Inc. (DXCM) closed at 87.71 on 16 Oct 2026, close to the GLS average fair value of 80.03 (9.6% above fair value). 4 of the 8 models that produced a number sit above the price, 4 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
The 8 models disagree widely: Graham Number gives 20.01 while GLS Growth gives 159.50. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files DXCM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for DXCM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 40.36 | -54% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 20.01 | -77% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 108.66 | +24% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 44.49 | -49% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 159.50 | +82% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 93.22 | +6% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 145.00 | +65% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 28.95 | -67% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.16 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 96.14 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health DXCM scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.5 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 20.2%, ROE 30.5%, ROA 13.2% - with debt at 0.51 times equity and a free-cash-flow yield of 4.2%.
DexCom, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 20.2% |
|---|---|---|---|
| GLS Moat | 8.5 / 10 | ROE | 30.5% |
| Debt / equity | 0.51 | ROA | 13.2% |
| Free-cash-flow yield | 4.2% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 78: Good
DXCM scores 78 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 8/25), Piotroski health (18/20), the GLS moat (13/15), the option premium on offer (20/20) and how easily the stock trades (19/20). Value (8/25) is the part holding the score back.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 82,972 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 4.5M shares a day on a market cap of $33.1B, with a beta of 1.48 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 8 / 25 | -10% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 13 / 15 | moat 8.5/10 | |
| Premium | 20 / 20 | implied volatility 48% | |
| Stability | 19 / 20 | 4.5M shares/day, $33.1B cap, beta 1.48 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
DexCom, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Devices
The 12 companies below are the closest to DexCom, Inc. by market cap within the Medical - Devices industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| GEHC GE HealthCare Technologies Inc. | 70.35 | 51.87 | -36% | 58Fair | $31.8B |
| PHG Koninklijke Philips N.V. | 25.00 | 37.85 | +34% | 82Prime | $24.2B |
| EW Edwards Lifesciences Corporation | 88.10 | 39.75 | -122% | 62Fair | $50.8B |
| ZBH Zimmer Biomet Holdings, Inc. | 91.77 | 134.51 | +32% | 87Prime | $17.5B |
| BSX Boston Scientific Corporation | 44.14 | 65.77 | +33% | 95Prime | $64.0B |
| PEN Penumbra, Inc. | 320.12 | 139.38 | -130% | 54Fair | $12.6B |
| SNN Smith & Nephew plc | 27.88 | 37.94 | +27% | 90Prime | $11.7B |
| ALGN Align Technology, Inc. | 149.34 | 125.50 | -19% | 66Good | $10.6B |
| GMED Globus Medical, Inc. | 78.84 | 112.94 | +30% | 92Prime | $10.6B |
| SYK Stryker Corporation | 281.63 | 211.44 | -33% | 68Good | $108.0B |
| BIO Bio-Rad Laboratories, Inc. | 364.82 | 246.29 | -48% | 58Fair | $9.8B |
| GKOS Glaukos Corporation | 165.60 | - | - | 45Weak | $9.8B |
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Start free See the Sunday ScanQuestions about DXCM
Is DXCM undervalued right now?
Not meaningfully: at 87.71 the stock trades within a few percent of the GLS average fair value of 80.03 (9.6% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of DXCM and what does it mean?
DXCM scores 78 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DXCM?
80.03 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does DexCom, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DXCM have listed options, and how liquid are they?
Yes. The nightly snapshot found 826 listed contracts with 82,972 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.