DELL TECHNOLOGIES -C (1DELL.MI) Stock Fundamental Analysis
BIT:1DELL - Euronext Milan - US24703L2025 - Common Stock - Currency: EUR
1DELL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1DELL is still in line with the averages on profitability rating, there are concerns on its financial health. 1DELL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1DELL had positive earnings in the past year.
In the past year 1DELL had a positive cash flow from operations.
Of the past 5 years 1DELL 4 years were profitable.
1DELL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1DELL has a Return On Assets of 5.00%. This is in the better half of the industry: 1DELL outperforms 68.00% of its industry peers.
With a decent Return On Invested Capital value of 14.67%, 1DELL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1DELL is below the industry average of 16.17%.
The 3 year average ROIC (12.20%) for 1DELL is below the current ROIC(14.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | N/A | ||
| ROIC | 14.67% |
ROA(3y)4.21%
ROA(5y)3.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.2%
ROIC(5y)8.82%
1.3 Margins
1DELL's Profit Margin of 4.36% is in line compared to the rest of the industry. 1DELL outperforms 60.00% of its industry peers.
1DELL's Profit Margin has been stable in the last couple of years.
1DELL has a Operating Margin (6.44%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1DELL has grown nicely.
With a Gross Margin value of 22.07%, 1DELL is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of 1DELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.44% | ||
| PM (TTM) | 4.36% | ||
| GM | 22.07% |
OM growth 3Y12.3%
OM growth 5Y97.48%
PM growth 3Y-1.06%
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y-3.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1DELL is creating value.
There is no outstanding debt for 1DELL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
1DELL has an Altman-Z score of 1.76. This is a bad value and indicates that 1DELL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1DELL (1.76) is comparable to the rest of the industry.
The Debt to FCF ratio of 1DELL is 8.86, which is on the high side as it means it would take 1DELL, 8.86 years of fcf income to pay off all of its debts.
1DELL's Debt to FCF ratio of 8.86 is in line compared to the rest of the industry. 1DELL outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.86 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.91
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.77 indicates that 1DELL may have some problems paying its short term obligations.
1DELL has a Current ratio of 0.77. This is amonst the worse of the industry: 1DELL underperforms 88.00% of its industry peers.
1DELL has a Quick Ratio of 0.77. This is a bad value and indicates that 1DELL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1DELL (0.63) is worse than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
1DELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.59%, which is quite good.
The Earnings Per Share has been decreasing by -3.72% on average over the past years.
The Revenue has been growing slightly by 3.08% in the past year.
The Revenue has been decreasing by -0.49% on average over the past years.
EPS 1Y (TTM)11.59%
EPS 3Y-3.72%
EPS 5YN/A
EPS Q2Q%14.36%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Sales Q2Q%9.51%
3.2 Future
The Earnings Per Share is expected to grow by 13.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.68% on average over the next years.
EPS Next Y12.02%
EPS Next 2Y15.02%
EPS Next 3Y14.52%
EPS Next 5Y13.93%
Revenue Next Year9.08%
Revenue Next 2Y8.25%
Revenue Next 3Y7.76%
Revenue Next 5Y5.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.28, the valuation of 1DELL can be described as correct.
Based on the Price/Earnings ratio, 1DELL is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1DELL to the average of the S&P500 Index (29.35), we can say 1DELL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.78, the valuation of 1DELL can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1DELL is on the same level as its industry peers.
1DELL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1DELL is on the same level as its industry peers.
1DELL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1DELL's earnings are expected to grow with 14.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y15.02%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
1DELL has a Yearly Dividend Yield of 1.95%. Purely for dividend investing, there may be better candidates out there.
1DELL's Dividend Yield is a higher than the industry average which is at 2.22.
1DELL's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
29.89% of the earnings are spent on dividend by 1DELL. This is a low number and sustainable payout ratio.
DP29.89%
EPS Next 2Y15.02%
EPS Next 3Y14.52%
BIT:1DELL (3/6/2025, 7:00:00 PM)
88.03
-20.53 (-18.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners72.41%
Inst Owner ChangeN/A
Ins Owners10.55%
Ins Owner ChangeN/A
Market Cap61.42B
Analysts80.67
Price Target147.74 (67.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend1.45
Dividend Growth(5Y)N/A
DP29.89%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.41%
Min EPS beat(2)2.34%
Max EPS beat(2)8.47%
EPS beat(4)3
Avg EPS beat(4)8.68%
Min EPS beat(4)-0.95%
Max EPS beat(4)24.85%
EPS beat(8)7
Avg EPS beat(8)21.07%
EPS beat(12)10
Avg EPS beat(12)18.88%
EPS beat(16)14
Avg EPS beat(16)18.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)1.63%
Revenue beat(8)5
Avg Revenue beat(8)0.84%
Revenue beat(12)6
Avg Revenue beat(12)-1.27%
Revenue beat(16)6
Avg Revenue beat(16)-3.52%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.07%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.68 | ||
| P/FCF | 22.78 | ||
| P/OCF | 11.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)7.17
EY8.14%
EPS(NY)9
Fwd EY10.23%
FCF(TTM)3.86
FCFY4.39%
OCF(TTM)7.48
OCFY8.5%
SpS128.53
BVpS-3.13
TBVpS-36.49
PEG (NY)1.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | N/A | ||
| ROCE | 18.65% | ||
| ROIC | 14.67% | ||
| ROICexc | 17.48% | ||
| ROICexgc | 167.84% | ||
| OM | 6.44% | ||
| PM (TTM) | 4.36% | ||
| GM | 22.07% | ||
| FCFM | 3.01% |
ROA(3y)4.21%
ROA(5y)3.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.2%
ROIC(5y)8.82%
ROICexc(3y)15.92%
ROICexc(5y)11.3%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.51%
ROCE(5y)11.22%
ROICexcg growth 3Y524.21%
ROICexcg growth 5YN/A
ROICexc growth 3Y48.78%
ROICexc growth 5Y129.65%
OM growth 3Y12.3%
OM growth 5Y97.48%
PM growth 3Y-1.06%
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y-3.11%
F-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.86 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 82.88% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.18% | ||
| Profit Quality | 68.94% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.76 |
F-Score8
WACC7.69%
ROIC/WACC1.91
Cap/Depr(3y)80.01%
Cap/Depr(5y)64.15%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.85%
Profit Quality(3y)114.13%
Profit Quality(5y)154.91%
High Growth Momentum
Growth
EPS 1Y (TTM)11.59%
EPS 3Y-3.72%
EPS 5YN/A
EPS Q2Q%14.36%
EPS Next Y12.02%
EPS Next 2Y15.02%
EPS Next 3Y14.52%
EPS Next 5Y13.93%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Sales Q2Q%9.51%
Revenue Next Year9.08%
Revenue Next 2Y8.25%
Revenue Next 3Y7.76%
Revenue Next 5Y5.68%
EBIT growth 1Y13.27%
EBIT growth 3Y13.06%
EBIT growth 5Y96.51%
EBIT Next Year45.37%
EBIT Next 3Y21.77%
EBIT Next 5Y14.08%
FCF growth 1Y194.27%
FCF growth 3Y-14.05%
FCF growth 5Y1.77%
OCF growth 1Y38.67%
OCF growth 3Y-8.72%
OCF growth 5Y4.41%