DELL TECHNOLOGIES -C (DELL)
US24703L2025 - Common Stock
Overall DELL gets a fundamental rating of 4 out of 10. We evaluated DELL against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of DELL while its profitability can be described as average. 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.
DELL had positive earnings in each of the past 5 years.
In the past 5 years DELL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DELL (4.80%) is better than 75.00% of its industry peers.
DELL has a Return On Invested Capital of 14.81%. This is in the better half of the industry: DELL outperforms 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DELL is below the industry average of 16.81%.
The 3 year average ROIC (12.20%) for DELL is below the current ROIC(14.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | N/A | ||
| ROIC | 14.81% |
ROA(3y)4.21%
ROA(5y)3.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.2%
ROIC(5y)8.82%
1.3 Margins
With a decent Profit Margin value of 4.32%, DELL is doing good in the industry, outperforming 65.63% of the companies in the same industry.
In the last couple of years the Profit Margin of DELL has remained more or less at the same level.
The Operating Margin of DELL (6.28%) is better than 62.50% of its industry peers.
DELL's Operating Margin has improved in the last couple of years.
DELL has a Gross Margin of 22.41%. This is in the lower half of the industry: DELL underperforms 68.75% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.28% | ||
| PM (TTM) | 4.32% | ||
| GM | 22.41% |
OM growth 3Y12.3%
OM growth 5Y97.48%
PM growth 3Y-1.06%
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y-3.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DELL is creating some value.
Compared to 1 year ago, DELL has less shares outstanding
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
Based on the Altman-Z score of 1.73, we must say that DELL is in the distress zone and has some risk of bankruptcy.
DELL has a Altman-Z score of 1.73. This is comparable to the rest of the industry: DELL outperforms 43.75% of its industry peers.
DELL has a debt to FCF ratio of 7.30. This is a slightly negative value and a sign of low solvency as DELL would need 7.30 years to pay back of all of its debts.
DELL has a Debt to FCF ratio (7.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.3 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.4
WACC10.57%
2.3 Liquidity
DELL has a Current Ratio of 0.72. 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 Current ratio of 0.72. This is amonst the worse of the industry: DELL underperforms 93.75% of its industry peers.
DELL has a Quick Ratio of 0.72. 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 Quick ratio of 0.61 is on the low side compared to the rest of the industry. DELL is outperformed by 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.26% over the past year.
The Earnings Per Share has been growing slightly by 1.22% on average over the past years.
DELL shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
DELL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.49% yearly.
EPS 1Y (TTM)1.26%
EPS 3Y-3.72%
EPS 5Y1.22%
EPS Q2Q%8.62%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Sales Q2Q%9.12%
3.2 Future
The Earnings Per Share is expected to grow by 11.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.41% on average over the next years.
EPS Next Y12.42%
EPS Next 2Y15.83%
EPS Next 3Y15%
EPS Next 5Y11.4%
Revenue Next Year10.64%
Revenue Next 2Y9.09%
Revenue Next 3Y7.71%
Revenue Next 5Y4.41%
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.
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 18.65 indicates a rather expensive valuation of DELL.
Compared to the rest of the industry, the Price/Earnings ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 65.63% of the companies listed in the same industry.
DELL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.11, the valuation of DELL can be described as correct.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.56. DELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 14.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued a bit cheaper than 68.75% of the companies in the same industry.
DELL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.21 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
DELL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.00% in the coming years.
PEG (NY)1.5
PEG (5Y)15.26
EPS Next 2Y15.83%
EPS Next 3Y15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, DELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, DELL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.32, DELL pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
DELL has been paying a dividend for over 5 years, so it has already some track record.
The dividend of DELL decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DELL pays out 29.68% of its income as dividend. This is a sustainable payout ratio.
DP29.68%
EPS Next 2Y15.83%
EPS Next 3Y15%
DELL TECHNOLOGIES -C
NYSE:DELL (11/21/2024, 10:05:09 AM)
134.99
+1.03 (+0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 14.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.5
PEG (5Y)15.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.28% | ||
| PM (TTM) | 4.32% | ||
| GM | 22.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.26%
EPS 3Y-3.72%
EPS 5Y
EPS Q2Q%
EPS Next Y12.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y0.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y