DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
NYSE:DELL - New York Stock Exchange, Inc. - US24703L2025 - Common Stock - Currency: USD
DELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
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.
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
Looking at the Return On Assets, with a value of 5.29%, DELL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
DELL has a better Return On Invested Capital (16.53%) than 78.13% of its industry peers.
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
DELL's Profit Margin of 4.75% is fine compared to the rest of the industry. DELL outperforms 78.13% of its industry peers.
In the last couple of years the Profit Margin of DELL has declined.
With a decent Operating Margin value of 7.19%, DELL is doing good in the industry, outperforming 65.63% of the companies in the same industry.
In the last couple of years the Operating Margin of DELL has grown nicely.
DELL's Gross Margin of 22.11% is on the low side compared to the rest of the industry. DELL is outperformed by 65.63% of its industry peers.
In the last couple of years the Gross Margin of DELL has declined.
| 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
DELL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
DELL has an Altman-Z score of 1.83. 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 1.83, DELL is in line with its industry, outperforming 46.88% of the companies in the same industry.
The Debt to FCF ratio of DELL is 7.89, which is on the high side as it means it would take DELL, 7.89 years of fcf income to pay off all of its debts.
DELL has a Debt to FCF ratio of 7.89. This is in the better half of the industry: DELL outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.89 | ||
| Altman-Z | 1.83 |
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.
DELL has a worse Current ratio (0.85) 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.
DELL has a Quick ratio of 0.70. This is in the lower half of the industry: DELL underperforms 71.88% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
Looking at the last year, DELL shows a quite strong growth in Revenue. The Revenue has grown by 8.08% in the last year.
The Revenue has been growing slightly by 2.42% on average over the past years.
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
DELL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.15% yearly.
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
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
Based on the Price/Earnings ratio of 15.62, the valuation of DELL can be described as correct.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
DELL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 11.51 indicates a reasonable valuation of DELL.
DELL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DELL is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. DELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than DELL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.36 | ||
| 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.
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 14.75% in the coming years.
PEG (NY)0.8
PEG (5Y)9.27
EPS Next 2Y16.45%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 1.92, DELL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, 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
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%
124.77
-0.45 (-0.36%)
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-0.37%
Ins Owners11.21%
Ins Owner Change-28.23%
Market Cap85.28B
Analysts82
Price Target139.28 (11.63%)
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 | 15.62 | ||
| Fwd PE | 11.51 | ||
| P/S | 0.88 | ||
| P/FCF | 23.36 | ||
| P/OCF | 13.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)7.99
EY6.4%
EPS(NY)10.84
Fwd EY8.68%
FCF(TTM)5.34
FCFY4.28%
OCF(TTM)9.18
OCFY7.36%
SpS141.48
BVpS-4.42
TBVpS-39.81
PEG (NY)0.8
PEG (5Y)9.27
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 | 1.83 |
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%