DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DELL - US24703L2025 - Common Stock
129.98 USD
-8.62 (-6.22%)
129.316 USD
-0.66 (-0.51%)
We assign a fundamental rating of 5 out of 10 to DELL. DELL was compared to 35 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. 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.
DELL had a positive operating cash flow in the past year.
Each year in the past 5 years DELL has been profitable.
Each year in the past 5 years DELL had a positive operating cash flow.
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.
Measured over the past 3 years, the Average Return On Invested Capital for DELL 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
DELL's Profit Margin of 5.12% is fine compared to the rest of the industry. DELL outperforms 77.14% of its industry peers.
In the last couple of years the Profit Margin of DELL has declined.
The Operating Margin of DELL (7.41%) is better than 74.29% of its industry peers.
DELL's Operating Margin has improved in the last couple of years.
The Gross Margin of DELL (20.95%) is worse than 62.86% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| 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), DELL 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.
DELL has a Altman-Z score (2.02) which is comparable to the rest of the industry.
DELL has a debt to FCF ratio of 7.02. This is a slightly negative value and a sign of low solvency as DELL would need 7.02 years to pay back of all of its debts.
DELL has a better Debt to FCF ratio (7.02) than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 2.02 |
ROIC/WACC2.31
WACC7.81%
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's Current ratio of 0.85 is on the low side compared to the rest of the industry. DELL is outperformed by 77.14% of its industry peers.
DELL has a Quick 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 Quick ratio, with a value of 0.72, DELL is doing worse than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.39% 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.
DELL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.08%.
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)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.
DELL 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
A Price/Earnings ratio of 14.22 indicates a correct valuation of DELL.
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.
DELL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
The Price/Forward Earnings ratio is 11.14, which indicates a very decent valuation of DELL.
DELL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DELL is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, DELL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than DELL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 74.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.58 | ||
| EV/EBITDA | 10.58 |
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.
DELL's earnings are expected to grow with 18.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)8.45
EPS Next 2Y20.83%
EPS Next 3Y18.35%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.51%.
DELL's Dividend Yield is rather good when compared to the industry average which is at 1.72. DELL pays more dividend than 85.71% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.27, DELL is paying slightly less dividend.
| 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.
The dividend of DELL decreased 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%
129.98
-8.62 (-6.22%)
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 Cap87.11B
Revenue(TTM)95.57B
Net Income(TTM)5.33B
Analysts79.38
Price Target162.98 (25.39%)
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 | 14.22 | ||
| Fwd PE | 11.14 | ||
| P/S | 0.84 | ||
| P/FCF | 19.58 | ||
| P/OCF | 12.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)9.14
EY7.03%
EPS(NY)11.66
Fwd EY8.97%
FCF(TTM)6.64
FCFY5.11%
OCF(TTM)10.59
OCFY8.15%
SpS155.31
BVpS-3.91
TBVpS-39.7
PEG (NY)0.55
PEG (5Y)8.45
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
WACC7.81%
ROIC/WACC2.31
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%.