DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - NYSE:DELL - US24703L2025 - Common Stock
130.34 USD
+2.66 (+2.08%)
130.83 USD
+0.49 (+0.38%)
We assign a fundamental rating of 5 out of 10 to DELL. DELL was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. DELL has only an average score on both its financial health and profitability. DELL is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years DELL has always been profitable.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.51%, DELL is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.21%, DELL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DELL is in line with the industry average of 14.98%.
The 3 year average ROIC (15.70%) for DELL is below the current ROIC(18.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | N/A | ||
| ROIC | 18.21% |
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 4.84%, DELL is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Profit Margin of DELL has declined.
DELL's Operating Margin of 7.11% is fine compared to the rest of the industry. DELL outperforms 69.70% of its industry peers.
In the last couple of years the Operating Margin of DELL has grown nicely.
The Gross Margin of DELL (21.21%) is worse than 66.67% of its industry peers.
In the last couple of years the Gross Margin of DELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 4.84% | ||
| GM | 21.21% |
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
Compared to 1 year ago, DELL has an improved debt to assets ratio.
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.
The Debt to FCF ratio of DELL is 5.90, which is a neutral value as it means it would take DELL, 5.90 years of fcf income to pay off all of its debts.
DELL has a Debt to FCF ratio of 5.90. This is in the better half of the industry: DELL outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.84 |
ROIC/WACC2.35
WACC7.74%
2.3 Liquidity
DELL has a Current Ratio of 0.83. This is a bad value and indicates that DELL is not financially healthy enough and could expect problems in meeting its short term obligations.
DELL has a worse Current ratio (0.83) than 81.82% of its industry peers.
A Quick Ratio of 0.70 indicates that DELL may have some problems paying its short term obligations.
The Quick ratio of DELL (0.70) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.06% over the past year.
Measured over the past 5 years, DELL shows a small growth in Earnings Per Share. The EPS has been growing by 1.68% on average per year.
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)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
The Earnings Per Share is expected to grow by 13.84% on average over the next years. This is quite good.
DELL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y19.73%
EPS Next 2Y17.56%
EPS Next 3Y16.1%
EPS Next 5Y13.84%
Revenue Next Year11.72%
Revenue Next 2Y9.64%
Revenue Next 3Y8.25%
Revenue Next 5Y5.35%
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
With a Price/Earnings ratio of 16.31, DELL is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of DELL indicates a rather cheap valuation: DELL is cheaper than 84.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DELL to the average of the S&P500 Index (27.20), we can say DELL is valued slightly cheaper.
DELL is valuated reasonably with a Price/Forward Earnings ratio of 11.80.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. DELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued cheaper than 81.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.03 | ||
| EV/EBITDA | 10.29 |
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.
The decent profitability rating of DELL may justify a higher PE ratio.
A more expensive valuation may be justified as DELL's earnings are expected to grow with 16.10% in the coming years.
PEG (NY)0.83
PEG (5Y)9.69
EPS Next 2Y17.56%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, DELL has a reasonable but not impressive dividend return.
DELL's Dividend Yield is rather good when compared to the industry average which is at 1.85. DELL pays more dividend than 87.88% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, DELL is paying slightly less dividend.
| 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
DELL pays out 28.18% of its income as dividend. This is a sustainable payout ratio.
DP28.18%
EPS Next 2Y17.56%
EPS Next 3Y16.1%
130.34
+2.66 (+2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners68.78%
Inst Owner Change0.06%
Ins Owners8.36%
Ins Owner Change-26.72%
Market Cap87.64B
Analysts80.67
Price Target149.66 (14.82%)
Short Float %4.2%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP28.18%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.57%
Min EPS beat(2)-9.96%
Max EPS beat(2)-1.18%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-9.96%
Max EPS beat(4)4%
EPS beat(8)5
Avg EPS beat(8)6.66%
EPS beat(12)9
Avg EPS beat(12)16.89%
EPS beat(16)12
Avg EPS beat(16)14.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.5%
PT rev (1m)6.23%
PT rev (3m)9%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)4.72%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.86 | ||
| P/FCF | 18.03 | ||
| P/OCF | 11.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.29 |
EPS(TTM)7.99
EY6.13%
EPS(NY)11.04
Fwd EY8.47%
FCF(TTM)7.23
FCFY5.55%
OCF(TTM)11.12
OCFY8.53%
SpS150.89
BVpS-4.11
TBVpS-39.93
PEG (NY)0.83
PEG (5Y)9.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | N/A | ||
| ROCE | 21.03% | ||
| ROIC | 18.21% | ||
| ROICexc | 23.87% | ||
| ROICexgc | 299.64% | ||
| OM | 7.11% | ||
| PM (TTM) | 4.84% | ||
| GM | 21.21% | ||
| FCFM | 4.79% |
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-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 83.8% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.32% | ||
| Profit Quality | 98.88% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.84 |
F-Score7
WACC7.74%
ROIC/WACC2.35
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 Y19.73%
EPS Next 2Y17.56%
EPS Next 3Y16.1%
EPS Next 5Y13.84%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year11.72%
Revenue Next 2Y9.64%
Revenue Next 3Y8.25%
Revenue Next 5Y5.35%
EBIT growth 1Y24.54%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year46.57%
EBIT Next 3Y20.1%
EBIT Next 5Y13.12%
FCF growth 1Y-7.78%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y-7.7%
OCF growth 3Y-24.02%
OCF growth 5Y-13.42%