DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DELL - US24703L2025 - Common Stock
138.22 USD
-2.19 (-1.56%)
138 USD
-0.22 (-0.16%)
DELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While DELL is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DELL.
1. Profitability
1.1 Basic Checks
In the past year DELL was profitable.
In the past year DELL had a positive cash flow from operations.
DELL had positive earnings in each of the past 5 years.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DELL (6.09%) is better than 80.00% of its industry peers.
The Return On Invested Capital of DELL (18.06%) is better than 82.86% of its industry peers.
DELL had an Average Return On Invested Capital over the past 3 years of 15.70%. This is in line with the industry average of 15.26%.
The last Return On Invested Capital (18.06%) for DELL 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
Looking at the Profit Margin, with a value of 5.12%, DELL is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
DELL's Profit Margin has declined in the last couple of years.
The Operating Margin of DELL (7.41%) is better than 74.29% of its industry peers.
In the last couple of years the Operating Margin of DELL has grown nicely.
DELL's Gross Margin of 20.95% is on the low side compared to the rest of the industry. DELL is outperformed by 62.86% of its industry peers.
In the last couple of years the Gross Margin of DELL 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
DELL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DELL has been reduced compared to 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
DELL has an Altman-Z score of 2.02. This is not the best score and indicates that DELL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.02, DELL is in line with its industry, outperforming 54.29% of the companies in the same industry.
The Debt to FCF ratio of DELL is 7.02, which is on the high side as it means it would take DELL, 7.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DELL (7.02) is better than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 2.02 |
ROIC/WACC2.29
WACC7.88%
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.
Looking at the Current ratio, with a value of 0.85, DELL is doing worse than 77.14% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that DELL may have some problems paying its short term obligations.
DELL has a Quick ratio of 0.72. This is in the lower half of the industry: DELL underperforms 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
DELL 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.
The Revenue has grown by 8.08% in the past year. This is quite good.
DELL 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
The Earnings Per Share is expected to grow by 15.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.21% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 15.12, the valuation of DELL can be described as correct.
DELL's Price/Earnings ratio is rather cheap when compared to the industry. DELL is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of DELL to the average of the S&P500 Index (26.28), we can say DELL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.85, the valuation of DELL can be described as reasonable.
71.43% of the companies in the same industry are more expensive than DELL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DELL to the average of the S&P500 Index (23.52), we can say DELL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.82 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
DELL's 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 18.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)8.98
EPS Next 2Y20.83%
EPS Next 3Y18.35%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.51%.
Compared to an average industry Dividend Yield of 1.91, DELL pays a better dividend. On top of this DELL pays more dividend than 85.71% of the companies listed in the same industry.
DELL's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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
26.71% of the earnings are spent on dividend by DELL. This is a low number and sustainable payout ratio.
DP26.71%
EPS Next 2Y20.83%
EPS Next 3Y18.35%
138.22
-2.19 (-1.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners72.12%
Inst Owner Change1.7%
Ins Owners5.55%
Ins Owner Change-73.43%
Market Cap92.64B
Revenue(TTM)95.57B
Net Income(TTM)5.33B
Analysts79.38
Price Target162.98 (17.91%)
Short Float %6.23%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP26.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-1.18%
Max EPS beat(2)2.72%
EPS beat(4)2
Avg EPS beat(4)-1.1%
Min EPS beat(4)-9.96%
Max EPS beat(4)4%
EPS beat(8)5
Avg EPS beat(8)3.79%
EPS beat(12)9
Avg EPS beat(12)13.68%
EPS beat(16)12
Avg EPS beat(16)13.89%
Revenue beat(2)1
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)7
Avg Revenue beat(16)-1.44%
PT rev (1m)1.26%
PT rev (3m)9.76%
EPS NQ rev (1m)9.64%
EPS NQ rev (3m)11.73%
EPS NY rev (1m)3.34%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)14.72%
Revenue NQ rev (3m)16.93%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)5.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.89 | ||
| P/FCF | 20.82 | ||
| P/OCF | 13.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)9.14
EY6.61%
EPS(NY)11.66
Fwd EY8.44%
FCF(TTM)6.64
FCFY4.8%
OCF(TTM)10.59
OCFY7.66%
SpS155.31
BVpS-3.91
TBVpS-39.7
PEG (NY)0.58
PEG (5Y)8.98
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | N/A | ||
| ROCE | 20.86% | ||
| ROIC | 18.06% | ||
| ROICexc | 24.36% | ||
| ROICexgc | 195.84% | ||
| OM | 7.41% | ||
| PM (TTM) | 5.12% | ||
| GM | 20.95% | ||
| FCFM | 4.27% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 84.76% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.51% | ||
| Profit Quality | 83.46% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.02 |
F-Score7
WACC7.88%
ROIC/WACC2.29
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)14.39%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
EPS Next Y25.9%
EPS Next 2Y20.83%
EPS Next 3Y18.35%
EPS Next 5Y15.97%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year15.06%
Revenue Next 2Y12.98%
Revenue Next 3Y11.27%
Revenue Next 5Y8.21%
EBIT growth 1Y22.64%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year51.13%
EBIT Next 3Y22.56%
EBIT Next 5Y14.8%
FCF growth 1Y-37.06%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y-28.01%
OCF growth 3Y-24.02%
OCF growth 5Y-13.42%
DELL TECHNOLOGIES -C / DELL FAQ
What is the fundamental rating for DELL stock?
ChartMill assigns a fundamental rating of 5 / 10 to DELL.
Can you provide the valuation status for DELL TECHNOLOGIES -C?
ChartMill assigns a valuation rating of 7 / 10 to DELL TECHNOLOGIES -C (DELL). This can be considered as Undervalued.
What is the profitability of DELL stock?
DELL TECHNOLOGIES -C (DELL) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for DELL stock?
The Earnings per Share (EPS) of DELL TECHNOLOGIES -C (DELL) is expected to grow by 25.9% in the next year.
How sustainable is the dividend of DELL TECHNOLOGIES -C (DELL) stock?
The dividend rating of DELL TECHNOLOGIES -C (DELL) is 4 / 10 and the dividend payout ratio is 26.71%.