Today, let’s talk about Dexcom, whose shares are among the top three growth leaders over the past 3 months.
During this period, Dexcom shares increased by 65.5%. At the same time, the health care sector, to which the company belongs, increased by +9%, and the S&P 500 index by +9.9%. As you can see, Dexcom shares show better returns than the sector average.
Dexcom is one of the world’s largest manufacturers of digital devices for the treatment of diabetes. For example, the Dexcom G7 is the most accurate electronic blood glucose meter in the United States. It also has an integrated system for automatic insulin administration for the patient.
The company operates in the Health Care Equipment & Supplies industry. It was founded in 1999. In 2005, it was listed on the NASDAQ, and in 2020 it was included in the S&P 500 index. For the past 7 years, the company has been led by Kevin Sayer and a team of experienced managers.
Dexcom’s main competitors are Abbott, Medtronic, and Insulet. As you can see from the table above, some of them are ahead of Dexcom in terms of capitalization, but the company has a number of competitive advantages.
Dexcom’s strengths are based on its ability to scale. Since the company operates in a narrow niche, it is difficult to expand its product range. That’s why Dexcom is constantly improving its flagship product and scaling up to new regions. Its international revenue grew by +2.6% quarter-on-quarter and by +41.1% quarter-on-quarter of last year. The company currently operates in more than 50 countries.
Dexcom published its latest report on October 26. 36% of the revenue structure is accounted for by manufacturing costs and 64% by gross revenue. Over the past quarter, the company made a profit of $120M. And its market capitalization is now $47B.
