DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - NYSE:DELL - US24703L2025 - Common Stock
117.4 USD
-1.98 (-1.66%)
117.5 USD
+0.1 (+0.09%)
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. There are concerns on the financial health of DELL while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on DELL.
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
The Return On Assets of DELL (5.51%) is better than 77.14% of its industry peers.
DELL has a better Return On Invested Capital (18.21%) than 82.86% of its industry peers.
DELL had an Average Return On Invested Capital over the past 3 years of 15.70%. This is in line with the industry average of 16.16%.
The 3 year average ROIC (15.70%) for DELL is below the current ROIC(18.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | N/A | ||
| ROIC | 18.21% |
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
The Profit Margin of DELL (4.84%) is better than 77.14% of its industry peers.
DELL's Profit Margin has declined in the last couple of years.
DELL's Operating Margin of 7.11% is fine compared to the rest of the industry. DELL outperforms 74.29% of its industry peers.
In the last couple of years the Operating Margin of DELL has grown nicely.
Looking at the Gross Margin, with a value of 21.21%, DELL is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of DELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 4.84% | ||
| GM | 21.21% |
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.
Compared to 1 year ago, DELL has less shares outstanding
Compared to 5 years ago, DELL has less shares outstanding
DELL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that DELL is in the distress zone and has some risk of bankruptcy.
DELL's Altman-Z score of 1.80 is in line compared to the rest of the industry. DELL outperforms 48.57% of its industry peers.
DELL has a debt to FCF ratio of 5.90. This is a neutral value as DELL would need 5.90 years to pay back of all of its debts.
DELL's Debt to FCF ratio of 5.90 is fine compared to the rest of the industry. DELL outperforms 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.8 |
ROIC/WACC2.36
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.83 indicates that DELL may have some problems paying its short term obligations.
The Current ratio of DELL (0.83) is worse than 80.00% of its industry peers.
DELL has a Quick Ratio of 0.83. This is a bad value and indicates that DELL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.70, DELL is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| 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.
DELL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.68% yearly.
Looking at the last year, DELL shows a quite strong growth in Revenue. The Revenue has grown by 8.08% in the last year.
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)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 15.97% on average per year.
Based on estimates for the next years, DELL will show a quite strong growth in Revenue. The Revenue will grow by 8.21% on average per year.
EPS Next Y21.82%
EPS Next 2Y19.8%
EPS Next 3Y18.09%
EPS Next 5Y15.97%
Revenue Next Year12%
Revenue Next 2Y10.39%
Revenue Next 3Y9.74%
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.
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
With a Price/Earnings ratio of 14.69, DELL is valued correctly.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.07, DELL is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.24 indicates a reasonable valuation of DELL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 74.29% of the companies listed in the same industry.
DELL is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued cheaply inside the industry as 82.86% 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 | 16.19 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The 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 18.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)8.73
EPS Next 2Y19.8%
EPS Next 3Y18.09%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
DELL's Dividend Yield is rather good when compared to the industry average which is at 1.95. DELL pays more dividend than 85.71% of the companies in the same industry.
DELL's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
DELL pays out 28.18% of its income as dividend. This is a sustainable payout ratio.
DP28.18%
EPS Next 2Y19.8%
EPS Next 3Y18.09%
117.4
-1.98 (-1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners71.17%
Inst Owner Change1.57%
Ins Owners8.41%
Ins Owner Change-74.28%
Market Cap78.68B
Revenue(TTM)95.57B
Net Income(TTM)4.92B
Analysts81.25
Price Target160.96 (37.1%)
Short Float %4.48%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP28.18%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.57%
Min EPS beat(2)-9.96%
Max EPS beat(2)-1.18%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-9.96%
Max EPS beat(4)4%
EPS beat(8)5
Avg EPS beat(8)6.66%
EPS beat(12)9
Avg EPS beat(12)16.89%
EPS beat(16)12
Avg EPS beat(16)14.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.5%
PT rev (1m)5.99%
PT rev (3m)14.25%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)5.39%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 10.24 | ||
| P/S | 0.78 | ||
| P/FCF | 16.19 | ||
| P/OCF | 10.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.73 |
EPS(TTM)7.99
EY6.81%
EPS(NY)11.47
Fwd EY9.77%
FCF(TTM)7.25
FCFY6.18%
OCF(TTM)11.16
OCFY9.5%
SpS151.37
BVpS-4.13
TBVpS-40.06
PEG (NY)0.67
PEG (5Y)8.73
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | N/A | ||
| ROCE | 21.03% | ||
| ROIC | 18.21% | ||
| ROICexc | 23.87% | ||
| ROICexgc | 299.64% | ||
| OM | 7.11% | ||
| PM (TTM) | 4.84% | ||
| GM | 21.21% | ||
| FCFM | 4.79% |
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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 83.8% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.32% | ||
| Profit Quality | 98.88% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.8 |
F-Score7
WACC7.72%
ROIC/WACC2.36
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 Y21.82%
EPS Next 2Y19.8%
EPS Next 3Y18.09%
EPS Next 5Y15.97%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year12%
Revenue Next 2Y10.39%
Revenue Next 3Y9.74%
Revenue Next 5Y8.21%
EBIT growth 1Y24.54%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year47.74%
EBIT Next 3Y21.74%
EBIT Next 5Y14.8%
FCF growth 1Y-7.78%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y-7.7%
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 21.82% 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 28.18%.