DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
NYSE:DELL - New York Stock Exchange, Inc. - US24703L2025 - Common Stock - Currency: USD
Overall DELL gets a fundamental rating of 5 out of 10. We evaluated DELL against 32 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. 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
DELL has a Return On Assets of 5.29%. This is in the better half of the industry: DELL outperforms 71.88% of its industry peers.
With a decent Return On Invested Capital value of 16.53%, DELL is doing good in the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DELL is in line with the industry average of 16.14%.
The 3 year average ROIC (15.70%) for DELL is below the current ROIC(16.53%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (4.75%) than 78.13% of its industry peers.
In the last couple of years the Profit Margin of DELL has declined.
DELL has a better Operating Margin (7.19%) than 65.63% of its industry peers.
DELL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.11%, DELL is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
DELL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DELL is creating value.
DELL has less shares outstanding than it did 1 year ago.
DELL has less shares outstanding than it did 5 years ago.
DELL has a better debt/assets ratio than last year.
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.
DELL has a Altman-Z score (1.83) which is comparable to the rest of the 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 better Debt to FCF ratio (7.89) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.89 | ||
| Altman-Z | 1.83 |
ROIC/WACC2.05
WACC8.08%
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 81.25% of its industry peers.
A Quick Ratio of 0.70 indicates that DELL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, DELL is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.06%, which is quite good.
The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
DELL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.08%.
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
Based on estimates for the next years, DELL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.15% on average per year.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y19.71%
EPS Next 2Y16.72%
EPS Next 3Y14.29%
EPS Next 5Y12.15%
Revenue Next Year8.16%
Revenue Next 2Y7.15%
Revenue Next 3Y6.11%
Revenue Next 5Y4.31%
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
The Price/Earnings ratio is 16.43, which indicates a correct valuation of DELL.
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.
The average S&P500 Price/Earnings ratio is at 27.50. DELL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.06, 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 71.88% of the companies are valued more expensively.
DELL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
DELL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DELL is cheaper than 71.88% of the companies in the same industry.
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 | 24.41 | ||
| EV/EBITDA | 10.43 |
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 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)9.75
EPS Next 2Y16.72%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.64%.
DELL's Dividend Yield is a higher than the industry average which is at 1.95.
DELL's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
DELL pays out 29.04% of its income as dividend. This is a sustainable payout ratio.
DP29.04%
EPS Next 2Y16.72%
EPS Next 3Y14.29%
131.24
+7.36 (+5.94%)
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 Cap89.09B
Analysts82
Price Target139.28 (6.13%)
Short Float %5.65%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)0.34%
EPS NQ rev (3m)13.66%
EPS NY rev (1m)2.32%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)16.09%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 12.06 | ||
| P/S | 0.92 | ||
| P/FCF | 24.41 | ||
| P/OCF | 14.2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.43 |
EPS(TTM)7.99
EY6.09%
EPS(NY)10.88
Fwd EY8.29%
FCF(TTM)5.38
FCFY4.1%
OCF(TTM)9.24
OCFY7.04%
SpS142.45
BVpS-4.45
TBVpS-40.08
PEG (NY)0.83
PEG (5Y)9.75
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
WACC8.08%
ROIC/WACC2.05
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 Y19.71%
EPS Next 2Y16.72%
EPS Next 3Y14.29%
EPS Next 5Y12.15%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year8.16%
Revenue Next 2Y7.15%
Revenue Next 3Y6.11%
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%