DexCom Cash And Equivalents vs. Current Valuation
| D1EX34 Stock | BRL 9.33 0.32 3.32% |
For DexCom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DexCom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DexCom Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DexCom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DexCom Inc over time as well as its relative position and ranking within its peers.
DexCom |
DexCom Inc Current Valuation vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DexCom's current stock value. Our valuation model uses many indicators to compare DexCom value to that of its competitors to determine the firm's financial worth. DexCom Inc is rated below average in cash and equivalents category among its peers. It is rated below average in current valuation category among its peers reporting about 1.92 of Current Valuation per Cash And Equivalents. Comparative valuation analysis is a catch-all model that can be used if you cannot value DexCom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DexCom's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.DexCom Current Valuation vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
DexCom |
| = | 2.58 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
DexCom |
| = | 4.96 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
DexCom Current Valuation vs Competition
DexCom Inc is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Diagnostics & Research industry is currently estimated at about 351.34 Billion. DexCom claims roughly 4.96 Billion in current valuation contributing just under 2% to equities under Diagnostics & Research industry.
DexCom Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DexCom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DexCom will eventually generate negative long term returns. The profitability progress is the general direction of DexCom's change in net profit over the period of time. It can combine multiple indicators of DexCom, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring systems in the United States and internationally. DexCom, Inc. was founded in 1999 and is headquartered in San Diego, California. DEXCOM INC operates under Diagnostics Research classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 5500 people.
DexCom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DexCom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DexCom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DexCom's important profitability drivers and their relationship over time.
Use DexCom in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DexCom position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DexCom will appreciate offsetting losses from the drop in the long position's value.DexCom Pair Trading
DexCom Inc Pair Trading Analysis
The ability to find closely correlated positions to DexCom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DexCom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DexCom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DexCom Inc to buy it.
The correlation of DexCom is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DexCom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DexCom Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DexCom can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your DexCom position
In addition to having DexCom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in DexCom Stock
When determining whether DexCom Inc is a strong investment it is important to analyze DexCom's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact DexCom's future performance. For an informed investment choice regarding DexCom Stock, refer to the following important reports:Check out Investing Opportunities. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
To fully project DexCom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DexCom Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DexCom's income statement, its balance sheet, and the statement of cash flows.