DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
NYSE:DELL - New York Stock Exchange, Inc. - US24703L2025 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DELL. DELL was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. DELL has a medium profitability rating, but doesn't score so well on its financial health evaluation. DELL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DELL had positive earnings in the past year.
In the past year DELL had a positive cash flow from operations.
Each year in the past 5 years DELL has been profitable.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DELL's Return On Assets of 5.29% is fine compared to the rest of the industry. DELL outperforms 71.88% of its industry peers.
With a decent Return On Invested Capital value of 16.53%, DELL is doing good in the industry, outperforming 78.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DELL is in line with the industry average of 16.14%.
The last Return On Invested Capital (16.53%) for DELL is above the 3 year average (15.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | N/A | ||
| ROIC | 16.53% |
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
The Profit Margin of DELL (4.75%) is better than 78.13% of its industry peers.
DELL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.19%, DELL is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
DELL's Operating Margin has improved in the last couple of years.
DELL has a worse Gross Margin (22.11%) than 65.63% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.19% | ||
| PM (TTM) | 4.75% | ||
| GM | 22.11% |
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), DELL is creating value.
DELL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DELL has less shares outstanding
The debt/assets ratio for DELL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that DELL is not a great score, but indicates only limited risk for bankruptcy at the moment.
DELL has a Altman-Z score (1.84) which is comparable to the rest of the industry.
DELL has a debt to FCF ratio of 7.89. This is a slightly negative value and a sign of low solvency as DELL would need 7.89 years to pay back of all of its debts.
DELL has a better Debt to FCF ratio (7.89) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.89 | ||
| Altman-Z | 1.84 |
ROIC/WACC2.08
WACC7.96%
2.3 Liquidity
DELL has a Current Ratio of 0.85. This is a bad value and indicates that DELL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DELL (0.85) is worse than 81.25% of its industry peers.
A Quick Ratio of 0.70 indicates that DELL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, DELL is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.06% over the past year.
DELL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.68% yearly.
Looking at the last year, DELL shows a quite strong growth in Revenue. The Revenue has grown by 8.08% in the last year.
Measured over the past years, DELL shows a small growth in Revenue. The Revenue has been growing by 2.42% on average per year.
EPS 1Y (TTM)12.06%
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, DELL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.15% on average per year.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y19.63%
EPS Next 2Y16.45%
EPS Next 3Y14.75%
EPS Next 5Y12.15%
Revenue Next Year7.94%
Revenue Next 2Y7.03%
Revenue Next 3Y6.39%
Revenue Next 5Y4.31%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 15.67, DELL is valued correctly.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than 75.00% of the companies in the same industry.
DELL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 11.56 indicates a reasonable valuation of DELL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 75.00% of the companies listed in the same industry.
DELL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
DELL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DELL is cheaper than 75.00% of the companies in the same industry.
DELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DELL is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.45 | ||
| EV/EBITDA | 10.58 |
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.
DELL has a very decent profitability rating, which may justify a higher PE ratio.
DELL's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)9.31
EPS Next 2Y16.45%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
DELL's Dividend Yield is a higher than the industry average which is at 1.92.
DELL's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of DELL decreases each year by -6.80%.
DELL has been paying a dividend for over 5 years, so it has already some track record.
DELL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.8%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
29.04% of the earnings are spent on dividend by DELL. This is a low number and sustainable payout ratio.
DP29.04%
EPS Next 2Y16.45%
EPS Next 3Y14.75%
125.22
+1.74 (+1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners68.89%
Inst Owner Change-55.4%
Ins Owners11.21%
Ins Owner Change-28.23%
Market Cap85.59B
Analysts82
Price Target139.28 (11.23%)
Short Float %6.75%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP29.04%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.98%
Min EPS beat(2)-9.96%
Max EPS beat(2)4%
EPS beat(4)3
Avg EPS beat(4)1.21%
Min EPS beat(4)-9.96%
Max EPS beat(4)8.47%
EPS beat(8)6
Avg EPS beat(8)13.08%
EPS beat(12)10
Avg EPS beat(12)17.04%
EPS beat(16)13
Avg EPS beat(16)14.68%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-0.97%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)1.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)6
Avg Revenue beat(16)-1.95%
PT rev (1m)1.44%
PT rev (3m)-1.64%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)6.44%
EPS NY rev (1m)2.25%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)15.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.89 | ||
| P/FCF | 23.45 | ||
| P/OCF | 13.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)7.99
EY6.38%
EPS(NY)10.84
Fwd EY8.65%
FCF(TTM)5.34
FCFY4.26%
OCF(TTM)9.18
OCFY7.33%
SpS141.48
BVpS-4.42
TBVpS-39.81
PEG (NY)0.8
PEG (5Y)9.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | N/A | ||
| ROCE | 19.09% | ||
| ROIC | 16.53% | ||
| ROICexc | 20.95% | ||
| ROICexgc | 131.97% | ||
| OM | 7.19% | ||
| PM (TTM) | 4.75% | ||
| GM | 22.11% | ||
| FCFM | 3.77% |
ROA(3y)4.2%
ROA(5y)4.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.7%
ROIC(5y)12.68%
ROICexc(3y)19.22%
ROICexc(5y)15.74%
ROICexgc(3y)262.93%
ROICexgc(5y)N/A
ROCE(3y)18.13%
ROCE(5y)14.64%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y9.13%
ROICexc growth 5Y39.04%
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%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.89 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 84.02% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.24% | ||
| Profit Quality | 79.4% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.84 |
F-Score6
WACC7.96%
ROIC/WACC2.08
Cap/Depr(3y)87.84%
Cap/Depr(5y)72.71%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.8%
Profit Quality(3y)79.48%
Profit Quality(5y)132.07%
High Growth Momentum
Growth
EPS 1Y (TTM)12.06%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
EPS Next Y19.63%
EPS Next 2Y16.45%
EPS Next 3Y14.75%
EPS Next 5Y12.15%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year7.94%
Revenue Next 2Y7.03%
Revenue Next 3Y6.39%
Revenue Next 5Y4.31%
EBIT growth 1Y19.11%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year45.7%
EBIT Next 3Y19.04%
EBIT Next 5Y11.37%
FCF growth 1Y40.55%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y11.82%
OCF growth 3Y-24.02%
OCF growth 5Y-13.42%