DELL TECHNOLOGIES -C (DELL)
US24703L2025 - Common Stock
DELL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 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.
DELL had a positive operating cash flow in the past year.
In the past 5 years DELL has always been profitable.
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 5.00%, DELL is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.39%, DELL is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
DELL had an Average Return On Invested Capital over the past 3 years of 12.20%. This is below the industry average of 15.77%.
The 3 year average ROIC (12.20%) for DELL is below the current ROIC(14.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | N/A | ||
| ROIC | 14.39% |
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 4.36%, DELL is doing good in the industry, outperforming 67.74% of the companies in the same industry.
DELL's Profit Margin has been stable in the last couple of years.
DELL has a better Operating Margin (6.32%) than 64.52% of its industry peers.
In the last couple of years the Operating Margin of DELL has grown nicely.
DELL's Gross Margin of 22.07% is on the low side compared to the rest of the industry. DELL is outperformed by 67.74% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| PM (TTM) | 4.36% | ||
| GM | 22.07% |
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
DELL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DELL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DELL has been reduced compared to 5 years ago.
DELL has a better debt/assets ratio than last year.
2.2 Solvency
DELL has an Altman-Z score of 1.73. This is a bad value and indicates that DELL is not financially healthy and even 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 45.16% of its industry peers.
The Debt to FCF ratio of DELL is 8.86, which is on the high side as it means it would take DELL, 8.86 years of fcf income to pay off all of its debts.
DELL has a Debt to FCF ratio (8.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.86 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.24
WACC11.64%
2.3 Liquidity
DELL has a Current Ratio of 0.77. 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 0.77. This is amonst the worse of the industry: DELL underperforms 93.55% of its industry peers.
A Quick Ratio of 0.63 indicates that DELL may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, DELL is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.59% over the past year.
DELL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.22% yearly.
The Revenue has been growing slightly by 3.08% in the past year.
DELL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.49% yearly.
EPS 1Y (TTM)11.59%
EPS 3Y-3.72%
EPS 5Y1.22%
EPS Q2Q%14.36%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Sales Q2Q%9.51%
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 13.93% yearly.
The Revenue is expected to grow by 5.68% on average over the next years.
EPS Next Y12.53%
EPS Next 2Y15.98%
EPS Next 3Y15.61%
EPS Next 5Y13.93%
Revenue Next Year10.61%
Revenue Next 2Y9.29%
Revenue Next 3Y7.88%
Revenue Next 5Y5.68%
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.
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 15.42.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than 74.19% of the companies in the same industry.
DELL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.07 indicates a correct valuation of DELL.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
DELL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued a bit cheaper than 77.42% of the companies in the same industry.
DELL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DELL is cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DELL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DELL's earnings are expected to grow with 15.61% in the coming years.
PEG (NY)1.23
PEG (5Y)12.62
EPS Next 2Y15.98%
EPS Next 3Y15.61%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.49%.
DELL's Dividend Yield is a higher than the industry average which is at 2.91.
DELL's Dividend Yield is slightly below the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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 in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
29.89% of the earnings are spent on dividend by DELL. This is a low number and sustainable payout ratio.
DP29.89%
EPS Next 2Y15.98%
EPS Next 3Y15.61%
DELL TECHNOLOGIES -C
NYSE:DELL (12/20/2024, 8:05:02 PM)
After market: 116.2 +0.43 (+0.37%)115.77
+3.81 (+3.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners33.43%
Inst Owner Change11.26%
Ins Owners6.45%
Ins Owner Change-22.72%
Market Cap81.11B
Analysts81.29
Price Target153.84 (32.88%)
Short Float %4.49%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)N/A
DP29.89%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.41%
Min EPS beat(2)2.34%
Max EPS beat(2)8.47%
EPS beat(4)3
Avg EPS beat(4)8.68%
Min EPS beat(4)-0.95%
Max EPS beat(4)24.85%
EPS beat(8)7
Avg EPS beat(8)21.07%
EPS beat(12)10
Avg EPS beat(12)18.88%
EPS beat(16)14
Avg EPS beat(16)18.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)1.63%
Revenue beat(8)5
Avg Revenue beat(8)0.84%
Revenue beat(12)6
Avg Revenue beat(12)-1.27%
Revenue beat(16)6
Avg Revenue beat(16)-3.52%
PT rev (1m)2.56%
PT rev (3m)-2.25%
EPS NQ rev (1m)-2.38%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 12.07 | ||
| P/S | 0.86 | ||
| P/FCF | 28.71 | ||
| P/OCF | 14.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.63 |
EPS(TTM)7.51
EY6.49%
EPS(NY)9.59
Fwd EY8.28%
FCF(TTM)4.03
FCFY3.48%
OCF(TTM)7.81
OCFY6.74%
SpS134.1
BVpS-3.26
TBVpS-38.07
PEG (NY)1.23
PEG (5Y)12.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | N/A | ||
| ROCE | 18.3% | ||
| ROIC | 14.39% | ||
| ROICexc | 17.15% | ||
| ROICexgc | 164.68% | ||
| OM | 6.32% | ||
| PM (TTM) | 4.36% | ||
| GM | 22.07% | ||
| FCFM | 3.01% |
ROA(3y)4.21%
ROA(5y)3.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.2%
ROIC(5y)8.82%
ROICexc(3y)15.92%
ROICexc(5y)11.3%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.51%
ROCE(5y)11.22%
ROICexcg growth 3Y524.21%
ROICexcg growth 5YN/A
ROICexc growth 3Y48.78%
ROICexc growth 5Y129.65%
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%
F-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.86 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 80.05% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.18% | ||
| Profit Quality | 68.94% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.73 |
F-Score8
WACC11.64%
ROIC/WACC1.24
Cap/Depr(3y)80.01%
Cap/Depr(5y)64.15%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.85%
Profit Quality(3y)114.13%
Profit Quality(5y)154.91%
High Growth Momentum
Growth
EPS 1Y (TTM)11.59%
EPS 3Y-3.72%
EPS 5Y1.22%
EPS Q2Q%14.36%
EPS Next Y12.53%
EPS Next 2Y15.98%
EPS Next 3Y15.61%
EPS Next 5Y13.93%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Sales Q2Q%9.51%
Revenue Next Year10.61%
Revenue Next 2Y9.29%
Revenue Next 3Y7.88%
Revenue Next 5Y5.68%
EBIT growth 1Y11.14%
EBIT growth 3Y13.06%
EBIT growth 5Y96.51%
EBIT Next Year47.2%
EBIT Next 3Y22.47%
EBIT Next 5Y14.08%
FCF growth 1Y194.27%
FCF growth 3Y-14.05%
FCF growth 5Y1.77%
OCF growth 1Y38.67%
OCF growth 3Y-8.72%
OCF growth 5Y4.41%