DELL TECHNOLOGIES -C (1DELL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DELL - US24703L2025 - Common Stock
96.1 EUR
-6.52 (-6.35%)
We assign a fundamental rating of 5 out of 10 to 1DELL. 1DELL was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. 1DELL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1DELL may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year 1DELL was profitable.
- In the past year 1DELL had a positive cash flow from operations.
- Each year in the past 5 years 1DELL has been profitable.
- Each year in the past 5 years 1DELL had a positive operating cash flow.
1.2 Ratios
- 1DELL's Return On Assets of 6.09% is fine compared to the rest of the industry. 1DELL outperforms 72.73% of its industry peers.
- 1DELL has a better Return On Invested Capital (18.06%) than 75.76% of its industry peers.
- 1DELL had an Average Return On Invested Capital over the past 3 years of 15.70%. This is in line with the industry average of 17.59%.
- The last Return On Invested Capital (18.06%) for 1DELL is above the 3 year average (15.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | N/A | ||
| ROIC | 18.06% |
ROA(3y)4.2%
ROA(5y)4.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.7%
ROIC(5y)12.68%
1.3 Margins
- 1DELL has a Profit Margin of 5.12%. This is in the better half of the industry: 1DELL outperforms 66.67% of its industry peers.
- 1DELL's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 7.41%, 1DELL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- 1DELL's Operating Margin has improved in the last couple of years.
- 1DELL has a Gross Margin of 20.95%. This is in the lower half of the industry: 1DELL underperforms 72.73% of its industry peers.
- In the last couple of years the Gross Margin of 1DELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.41% | ||
| PM (TTM) | 5.12% | ||
| GM | 20.95% |
OM growth 3Y14.62%
OM growth 5Y19.03%
PM growth 3Y-4.39%
PM growth 5Y-2.46%
GM growth 3Y0.92%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1DELL is creating value.
- The number of shares outstanding for 1DELL has been reduced compared to 1 year ago.
- The number of shares outstanding for 1DELL has been reduced compared to 5 years ago.
- The debt/assets ratio for 1DELL has been reduced compared to a year ago.
2.2 Solvency
- 1DELL has an Altman-Z score of 1.90. This is not the best score and indicates that 1DELL is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1DELL has a Altman-Z score of 1.90. This is comparable to the rest of the industry: 1DELL outperforms 48.48% of its industry peers.
- The Debt to FCF ratio of 1DELL is 7.02, which is on the high side as it means it would take 1DELL, 7.02 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.02, 1DELL is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.9 |
ROIC/WACC2.36
WACC7.65%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that 1DELL may have some problems paying its short term obligations.
- The Current ratio of 1DELL (0.85) is worse than 81.82% of its industry peers.
- A Quick Ratio of 0.72 indicates that 1DELL may have some problems paying its short term obligations.
- 1DELL has a Quick ratio of 0.72. This is in the lower half of the industry: 1DELL underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- 1DELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.39%, which is quite good.
- The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
- Looking at the last year, 1DELL shows a quite strong growth in Revenue. The Revenue has grown by 8.08% in the last year.
- 1DELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
EPS 1Y (TTM)14.39%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
3.2 Future
- Based on estimates for the next years, 1DELL will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.97% on average per year.
- 1DELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.21% yearly.
EPS Next Y25.9%
EPS Next 2Y20.83%
EPS Next 3Y18.35%
EPS Next 5Y15.97%
Revenue Next Year15.06%
Revenue Next 2Y12.98%
Revenue Next 3Y11.27%
Revenue Next 5Y8.21%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1DELL is valuated correctly with a Price/Earnings ratio of 12.30.
- 1DELL's Price/Earnings ratio is a bit cheaper when compared to the industry. 1DELL is cheaper than 75.76% of the companies in the same industry.
- 1DELL is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- 1DELL is valuated reasonably with a Price/Forward Earnings ratio of 9.64.
- 78.79% of the companies in the same industry are more expensive than 1DELL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1DELL to the average of the S&P500 Index (24.26), we can say 1DELL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1DELL is valued a bit cheaper than 78.79% of the companies in the same industry.
- 69.70% of the companies in the same industry are more expensive than 1DELL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1DELL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1DELL's earnings are expected to grow with 18.35% in the coming years.
PEG (NY)0.48
PEG (5Y)7.31
EPS Next 2Y20.83%
EPS Next 3Y18.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.51%, 1DELL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.90, 1DELL pays a bit more dividend than its industry peers.
- 1DELL's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
- The dividend of 1DELL decreases each year by -6.80%.
Dividend Growth(5Y)-6.8%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 26.71% of the earnings are spent on dividend by 1DELL. This is a low number and sustainable payout ratio.
DP26.71%
EPS Next 2Y20.83%
EPS Next 3Y18.35%
DELL TECHNOLOGIES -C / 1DELL.MI FAQ
Can you provide the ChartMill fundamental rating for DELL TECHNOLOGIES -C?
ChartMill assigns a fundamental rating of 5 / 10 to 1DELL.MI.
What is the valuation status for 1DELL stock?
ChartMill assigns a valuation rating of 7 / 10 to DELL TECHNOLOGIES -C (1DELL.MI). This can be considered as Undervalued.
How profitable is DELL TECHNOLOGIES -C (1DELL.MI) stock?
DELL TECHNOLOGIES -C (1DELL.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of DELL TECHNOLOGIES -C (1DELL.MI) stock?
The Price/Earnings (PE) ratio for DELL TECHNOLOGIES -C (1DELL.MI) is 12.3 and the Price/Book (PB) ratio is -28.78.
What is the financial health of DELL TECHNOLOGIES -C (1DELL.MI) stock?
The financial health rating of DELL TECHNOLOGIES -C (1DELL.MI) is 3 / 10.