DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DELL - US24703L2025 - Common Stock
120.62 USD
+2.12 (+1.79%)
120.45 USD
-0.17 (-0.14%)
Taking everything into account, DELL scores 5 out of 10 in our fundamental rating. DELL was compared to 35 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DELL was profitable.
DELL had a positive operating cash flow in the past year.
DELL had positive earnings in each of the past 5 years.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.09%, DELL belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
DELL has a Return On Invested Capital of 18.06%. This is amongst the best in the industry. DELL outperforms 82.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DELL is in line with the industry average of 16.06%.
The 3 year average ROIC (15.70%) for DELL is below the current ROIC(18.06%), indicating increased profibility in the last year.
| 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
DELL's Profit Margin of 5.12% is amongst the best of the industry. DELL outperforms 82.86% of its industry peers.
DELL's Profit Margin has declined in the last couple of years.
DELL has a Operating Margin of 7.41%. This is in the better half of the industry: DELL outperforms 77.14% of its industry peers.
DELL's Operating Margin has improved in the last couple of years.
DELL's Gross Margin of 20.95% is on the low side compared to the rest of the industry. DELL is outperformed by 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
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
Compared to 5 years ago, DELL has less shares outstanding
Compared to 1 year ago, DELL has an improved debt to assets ratio.
2.2 Solvency
DELL has an Altman-Z score of 1.93. 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's Altman-Z score of 1.93 is in line compared to the rest of the industry. DELL outperforms 54.29% of its industry peers.
The Debt to FCF ratio of DELL is 7.02, which is on the high side as it means it would take DELL, 7.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DELL (7.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.93 |
ROIC/WACC2.32
WACC7.78%
2.3 Liquidity
DELL has a Current 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's Current ratio of 0.85 is on the low side compared to the rest of the industry. DELL is outperformed by 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.
The Quick ratio of DELL (0.72) 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.
Measured over the past 5 years, DELL shows a small growth in Earnings Per Share. The EPS has been growing by 1.68% on average per year.
Looking at the last year, DELL shows a quite strong growth in Revenue. The Revenue has grown by 8.08% in the last year.
The Revenue has been growing slightly by 2.42% on average over the past years.
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
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.
DELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.21% yearly.
EPS Next Y27.07%
EPS Next 2Y21.5%
EPS Next 3Y18.76%
EPS Next 5Y15.97%
Revenue Next Year16.09%
Revenue Next 2Y13.9%
Revenue Next 3Y11.48%
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.
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 13.20, which indicates a correct valuation of DELL.
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 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.23, the valuation of DELL can be described as reasonable.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
DELL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 10.23 |
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 | 18.17 | ||
| EV/EBITDA | 9.33 |
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 18.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)7.84
EPS Next 2Y21.5%
EPS Next 3Y18.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, DELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.63, DELL pays a better dividend. On top of this DELL pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, DELL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 26.71% of its income as dividend. This is a sustainable payout ratio.
DP26.71%
EPS Next 2Y21.5%
EPS Next 3Y18.76%
120.62
+2.12 (+1.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners73.62%
Inst Owner Change0%
Ins Owners5.6%
Ins Owner Change-34.75%
Market Cap80.84B
Revenue(TTM)95.57B
Net Income(TTM)5.33B
Analysts79.38
Price Target163.65 (35.67%)
Short Float %6.51%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP26.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-1.18%
Max EPS beat(2)2.72%
EPS beat(4)2
Avg EPS beat(4)-1.1%
Min EPS beat(4)-9.96%
Max EPS beat(4)4%
EPS beat(8)5
Avg EPS beat(8)3.79%
EPS beat(12)9
Avg EPS beat(12)13.68%
EPS beat(16)12
Avg EPS beat(16)13.89%
Revenue beat(2)1
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)7
Avg Revenue beat(16)-1.44%
PT rev (1m)-0.33%
PT rev (3m)7.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.94%
EPS NY rev (1m)0.93%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.85%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 10.23 | ||
| P/S | 0.78 | ||
| P/FCF | 18.17 | ||
| P/OCF | 11.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.33 |
EPS(TTM)9.14
EY7.58%
EPS(NY)11.79
Fwd EY9.78%
FCF(TTM)6.64
FCFY5.5%
OCF(TTM)10.59
OCFY8.78%
SpS155.31
BVpS-3.91
TBVpS-39.7
PEG (NY)0.49
PEG (5Y)7.84
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | N/A | ||
| ROCE | 20.86% | ||
| ROIC | 18.06% | ||
| ROICexc | 24.36% | ||
| ROICexgc | 195.84% | ||
| OM | 7.41% | ||
| PM (TTM) | 5.12% | ||
| GM | 20.95% | ||
| FCFM | 4.27% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 84.76% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.51% | ||
| Profit Quality | 83.46% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.93 |
F-Score7
WACC7.78%
ROIC/WACC2.32
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)14.39%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
EPS Next Y27.07%
EPS Next 2Y21.5%
EPS Next 3Y18.76%
EPS Next 5Y15.97%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year16.09%
Revenue Next 2Y13.9%
Revenue Next 3Y11.48%
Revenue Next 5Y8.21%
EBIT growth 1Y22.64%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year51.59%
EBIT Next 3Y22.69%
EBIT Next 5Y14.8%
FCF growth 1Y-37.06%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y-28.01%
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.
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 13.2 and the Price/Book (PB) ratio is -30.85.
What is the financial health of DELL TECHNOLOGIES -C (DELL) stock?
The financial health rating of DELL TECHNOLOGIES -C (DELL) is 3 / 10.