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. DELL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past 5 years DELL has always been profitable.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DELL's Return On Assets of 5.00% is fine compared to the rest of the industry. DELL outperforms 77.42% of its industry peers.
DELL has a Return On Invested Capital of 14.67%. This is in the better half of the industry: DELL outperforms 74.19% of its industry peers.
DELL had an Average Return On Invested Capital over the past 3 years of 12.20%. This is below the industry average of 17.13%.
The last Return On Invested Capital (14.67%) for DELL is above the 3 year average (12.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | N/A | ||
| ROIC | 14.67% |
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
The Profit Margin of DELL (4.36%) is better than 67.74% of its industry peers.
DELL's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 6.44%, DELL is doing good in the industry, outperforming 61.29% of the companies in the same industry.
In the last couple of years the Operating Margin of DELL has grown nicely.
DELL has a Gross Margin of 22.07%. This is in the lower half of the industry: DELL underperforms 67.74% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.44% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DELL is creating value.
Compared to 1 year ago, DELL has less shares outstanding
DELL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DELL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that DELL is in the distress zone and has some risk of bankruptcy.
DELL's Altman-Z score of 1.77 is in line compared to the rest of the industry. DELL outperforms 41.94% of its industry peers.
DELL has a debt to FCF ratio of 8.86. This is a slightly negative value and a sign of low solvency as DELL would need 8.86 years to pay back of all of its debts.
DELL's Debt to FCF ratio of 8.86 is fine compared to the rest of the industry. DELL outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.86 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.87
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.77 indicates that DELL may have some problems paying its short term obligations.
With a Current ratio value of 0.77, DELL is not doing good in the industry: 90.32% of the companies in the same industry are doing better.
DELL has a Quick 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 worse Quick ratio (0.63) than 83.87% of its industry peers.
| 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.
DELL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
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 Y12.03%
EPS Next 2Y15.07%
EPS Next 3Y14.59%
EPS Next 5Y13.93%
Revenue Next Year9.09%
Revenue Next 2Y8.49%
Revenue Next 3Y7.94%
Revenue Next 5Y5.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 15.66 indicates a correct valuation of DELL.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DELL to the average of the S&P500 Index (29.63), we can say DELL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.46, DELL is valued correctly.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than 67.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. DELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued a bit cheaper than 74.19% of the companies in the same industry.
67.74% of the companies in the same industry are more expensive than DELL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.04 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
The 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.
DELL's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)12.82
EPS Next 2Y15.07%
EPS Next 3Y14.59%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 3.03, DELL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.29, DELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
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)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 2Y15.07%
EPS Next 3Y14.59%
117.6
-2.29 (-1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners66.23%
Inst Owner Change3.82%
Ins Owners5.68%
Ins Owner Change-21.01%
Market Cap82.05B
Analysts80.67
Price Target155.56 (32.28%)
Short Float %4.68%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend1.51
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)-0.23%
PT rev (3m)3.71%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 12.46 | ||
| P/S | 0.87 | ||
| P/FCF | 29.04 | ||
| P/OCF | 15 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.19 |
EPS(TTM)7.51
EY6.39%
EPS(NY)9.44
Fwd EY8.03%
FCF(TTM)4.05
FCFY3.44%
OCF(TTM)7.84
OCFY6.67%
SpS134.66
BVpS-3.28
TBVpS-38.23
PEG (NY)1.3
PEG (5Y)12.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | N/A | ||
| ROCE | 18.65% | ||
| ROIC | 14.67% | ||
| ROICexc | 17.48% | ||
| ROICexgc | 167.84% | ||
| OM | 6.44% | ||
| 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 | 82.88% | ||
| 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 | 1.77 |
F-Score8
WACC7.86%
ROIC/WACC1.87
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 Y12.03%
EPS Next 2Y15.07%
EPS Next 3Y14.59%
EPS Next 5Y13.93%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Sales Q2Q%9.51%
Revenue Next Year9.09%
Revenue Next 2Y8.49%
Revenue Next 3Y7.94%
Revenue Next 5Y5.68%
EBIT growth 1Y13.27%
EBIT growth 3Y13.06%
EBIT growth 5Y96.51%
EBIT Next Year45.37%
EBIT Next 3Y21.77%
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%