DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DELL - US24703L2025 - Common Stock
115.93 USD
+0.5 (+0.43%)
115.98 USD
+0.05 (+0.04%)
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. 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.
- Each year in the past 5 years DELL had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.09%, DELL belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- DELL's Return On Invested Capital of 18.06% is amongst the best of the industry. DELL outperforms 82.86% 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 16.06%.
- 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
- With an excellent Profit Margin value of 5.12%, DELL belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- DELL's Profit Margin has declined in the last couple of years.
- DELL has a better Operating Margin (7.41%) than 77.14% of its industry peers.
- In the last couple of years the Operating Margin of DELL has grown nicely.
- DELL has a worse Gross Margin (20.95%) than 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 1.92. 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 1.92, DELL is in line with its industry, outperforming 54.29% of the companies in the same 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 Debt to FCF ratio of 7.02. This is comparable to the rest of the industry: DELL outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.92 |
ROIC/WACC2.31
WACC7.8%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that DELL may have some problems paying its short term obligations.
- DELL has a worse Current ratio (0.85) than 71.43% 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.
- DELL has a Quick ratio (0.72) which is comparable to the rest of the industry.
| 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.
- DELL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.68% yearly.
- DELL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.08%.
- 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 17.43% on average over the next years. This is quite good.
- The Revenue is expected to grow by 9.12% on average over the next years. This is quite good.
EPS Next Y27.04%
EPS Next 2Y21.58%
EPS Next 3Y18.83%
EPS Next 5Y17.43%
Revenue Next Year16.2%
Revenue Next 2Y13.95%
Revenue Next 3Y11.59%
Revenue Next 5Y9.12%
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
- DELL is valuated correctly with a Price/Earnings ratio of 12.68.
- DELL's Price/Earnings ratio is rather cheap when compared to the industry. DELL is cheaper than 91.43% of the companies in the same industry.
- DELL is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.82, the valuation of DELL can be described as reasonable.
- DELL's Price/Forward Earnings ratio is rather cheap when compared to the industry. DELL is cheaper than 82.86% of the companies in the same industry.
- DELL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DELL is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
- DELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DELL is cheaper than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 9.14 |
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 18.83% in the coming years.
PEG (NY)0.47
PEG (5Y)7.53
EPS Next 2Y21.58%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
- DELL has a Yearly Dividend Yield of 1.79%.
- In the last 3 months the price of DELL has falen by -28.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- DELL's Dividend Yield is rather good when compared to the industry average which is at 0.66. DELL pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DELL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 2Y21.58%
EPS Next 3Y18.83%
DELL TECHNOLOGIES -C / DELL FAQ
What is the fundamental rating for DELL stock?
ChartMill assigns a fundamental rating of 5 / 10 to DELL.
What is the valuation status for DELL stock?
ChartMill assigns a valuation rating of 8 / 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.
What is the valuation of DELL TECHNOLOGIES -C based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DELL TECHNOLOGIES -C (DELL) is 12.68 and the Price/Book (PB) ratio is -29.66.
What is the financial health of DELL TECHNOLOGIES -C (DELL) stock?
The financial health rating of DELL TECHNOLOGIES -C (DELL) is 3 / 10.