DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DELL - US24703L2025 - Common Stock
115.43 USD
-1.74 (-1.49%)
115.15 USD
-0.28 (-0.24%)
DELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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. 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.
- In the past year DELL had a positive cash flow from operations.
- Each year in the past 5 years DELL has 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 (6.09%) is better than 82.86% of its industry peers.
- With an excellent Return On Invested Capital value of 18.06%, DELL belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DELL is in line with the industry average of 16.06%.
- The last Return On Invested Capital (18.06%) for DELL is above the 3 year average (15.70%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 5.12%, DELL belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- In the last couple of years the Profit Margin of DELL has declined.
- With a decent Operating Margin value of 7.41%, DELL is doing good in the industry, outperforming 77.14% of the companies in the same industry.
- DELL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 20.95%, DELL is doing worse than 62.86% 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 | 7.41% | ||
| 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.
- 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.
- Compared to 1 year ago, DELL has an improved debt to assets ratio.
2.2 Solvency
- DELL has an Altman-Z score of 1.92. 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 of 1.92. This is comparable to the rest of the industry: DELL outperforms 54.29% of its industry peers.
- DELL has a debt to FCF ratio of 7.02. This is a slightly negative value and a sign of low solvency as DELL would need 7.02 years to pay back of all of its debts.
- DELL has a Debt to FCF ratio (7.02) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.92 |
ROIC/WACC2.32
WACC7.79%
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 has a Current ratio of 0.85. This is in the lower half of the industry: DELL underperforms 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.
- The Revenue has grown by 8.08% in the past year. This is quite good.
- DELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
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 17.43% 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 9.12% on average per year.
EPS Next Y27.07%
EPS Next 2Y21.5%
EPS Next 3Y18.76%
EPS Next 5Y17.43%
Revenue Next Year16.09%
Revenue Next 2Y13.9%
Revenue Next 3Y11.48%
Revenue Next 5Y9.12%
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
- The Price/Earnings ratio is 12.63, which indicates a correct valuation of DELL.
- 91.43% of the companies in the same industry are more expensive than DELL, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DELL is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.79 indicates a reasonable valuation of DELL.
- 82.86% of the companies in the same industry are more expensive than DELL, based on the Price/Forward Earnings ratio.
- DELL is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DELL is valued cheaper than 88.57% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.39 | ||
| EV/EBITDA | 9.25 |
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.
- 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 18.76% in the coming years.
PEG (NY)0.47
PEG (5Y)7.5
EPS Next 2Y21.5%
EPS Next 3Y18.76%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.75%, DELL has a reasonable but not impressive dividend return.
- The stock price of DELL dropped by -27.24% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.64, DELL pays a better dividend. On top of this DELL pays more dividend than 85.71% of the companies listed in the same industry.
- DELL's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
- 26.71% of the earnings are spent on dividend by DELL. This is a low number and sustainable payout ratio.
DP26.71%
EPS Next 2Y21.5%
EPS Next 3Y18.76%
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 12.63 and the Price/Book (PB) ratio is -29.53.
What is the financial health of DELL TECHNOLOGIES -C (DELL) stock?
The financial health rating of DELL TECHNOLOGIES -C (DELL) is 3 / 10.