DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
NYSE:DXC • US23355L1061
12.59 USD
-0.05 (-0.4%)
At close: Feb 27, 2026
12.67 USD
+0.08 (+0.64%)
After Hours: 2/27/2026, 8:04:00 PM
Taking everything into account, DXC scores 3 out of 10 in our fundamental rating. DXC was compared to 87 industry peers in the IT Services industry. DXC has a medium profitability rating, but doesn't score so well on its financial health evaluation. DXC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year DXC was profitable.
- In the past year DXC had a positive cash flow from operations.
- In multiple years DXC reported negative net income over the last 5 years.
- DXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.21%, DXC is in line with its industry, outperforming 59.77% of the companies in the same industry.
- DXC has a Return On Equity of 13.45%. This is in the better half of the industry: DXC outperforms 75.86% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.89%, DXC is in line with its industry, outperforming 55.17% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DXC is significantly below the industry average of 10.57%.
- The 3 year average ROIC (2.61%) for DXC is below the current ROIC(2.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.45% | ||
| ROIC | 2.89% |
ROA(3y)0.01%
ROA(5y)0.58%
ROE(3y)-0.32%
ROE(5y)2.05%
ROIC(3y)2.61%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 3.34%, DXC is in line with its industry, outperforming 57.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of DXC has declined.
- DXC's Operating Margin of 3.60% is in line compared to the rest of the industry. DXC outperforms 50.57% of its industry peers.
- DXC's Operating Margin has declined in the last couple of years.
- DXC has a worse Gross Margin (24.25%) than 72.41% of its industry peers.
- In the last couple of years the Gross Margin of DXC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.6% | ||
| PM (TTM) | 3.34% | ||
| GM | 24.25% |
OM growth 3Y8.71%
OM growth 5Y-14.76%
PM growth 3Y-11.86%
PM growth 5YN/A
GM growth 3Y3.04%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DXC is destroying value.
- Compared to 1 year ago, DXC has more shares outstanding
- DXC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for DXC has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that DXC is in the distress zone and has some risk of bankruptcy.
- DXC has a Altman-Z score of 1.02. This is in the lower half of the industry: DXC underperforms 66.67% of its industry peers.
- DXC has a debt to FCF ratio of 5.08. This is a neutral value as DXC would need 5.08 years to pay back of all of its debts.
- DXC has a Debt to FCF ratio of 5.08. This is comparable to the rest of the industry: DXC outperforms 56.32% of its industry peers.
- DXC has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.11, DXC is doing worse than 67.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.36
WACC7.95%
2.3 Liquidity
- DXC has a Current Ratio of 1.35. This is a normal value and indicates that DXC is financially healthy and should not expect problems in meeting its short term obligations.
- DXC's Current ratio of 1.35 is on the low side compared to the rest of the industry. DXC is outperformed by 66.67% of its industry peers.
- DXC has a Quick Ratio of 1.35. This is a normal value and indicates that DXC is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of DXC (1.35) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- DXC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.74%.
- DXC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.24% yearly.
- Looking at the last year, DXC shows a decrease in Revenue. The Revenue has decreased by -3.09% in the last year.
- Measured over the past years, DXC shows a decrease in Revenue. The Revenue has been decreasing by -8.05% on average per year.
EPS 1Y (TTM)-6.74%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-3.09%
Revenue growth 3Y-7.5%
Revenue growth 5Y-8.05%
Sales Q2Q%-0.96%
3.2 Future
- Based on estimates for the next years, DXC will show a small growth in Earnings Per Share. The EPS will grow by 1.53% on average per year.
- The Revenue is expected to decrease by -1.66% on average over the next years.
EPS Next Y-6.17%
EPS Next 2Y-1.91%
EPS Next 3Y1.53%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y-1.88%
Revenue Next 3Y-1.66%
Revenue Next 5YN/A
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
- With a Price/Earnings ratio of 3.79, the valuation of DXC can be described as very cheap.
- Based on the Price/Earnings ratio, DXC is valued cheaper than 94.25% of the companies in the same industry.
- DXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.10.
- With a Price/Forward Earnings ratio of 3.81, the valuation of DXC can be described as very cheap.
- Based on the Price/Forward Earnings ratio, DXC is valued cheaper than 94.25% of the companies in the same industry.
- DXC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.79 | ||
| Fwd PE | 3.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DXC is valued cheaply inside the industry as 98.85% of the companies are valued more expensively.
- 98.85% of the companies in the same industry are more expensive than DXC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.99 | ||
| EV/EBITDA | 2.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.91%
EPS Next 3Y1.53%
5. Dividend
5.1 Amount
- No dividends for DXC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
12.59
-0.05 (-0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)05-12 2026-05-12/amc
Inst Owners96.52%
Inst Owner Change-1.81%
Ins Owners1.2%
Ins Owner Change0.09%
Market Cap2.14B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.22 (20.89%)
Short Float %7.47%
Short Ratio5.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.18%
Min EPS beat(2)14.98%
Max EPS beat(2)19.38%
EPS beat(4)4
Avg EPS beat(4)12.64%
Min EPS beat(4)7.63%
Max EPS beat(4)19.38%
EPS beat(8)8
Avg EPS beat(8)17.43%
EPS beat(12)10
Avg EPS beat(12)10.68%
EPS beat(16)12
Avg EPS beat(16)7.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)5
Avg Revenue beat(16)-0.85%
PT rev (1m)-6.01%
PT rev (3m)-5.35%
EPS NQ rev (1m)-12.27%
EPS NQ rev (3m)-12.27%
EPS NY rev (1m)1.85%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.79 | ||
| Fwd PE | 3.81 | ||
| P/S | 0.17 | ||
| P/FCF | 2.99 | ||
| P/OCF | 1.61 | ||
| P/B | 0.68 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 2.18 |
EPS(TTM)3.32
EY26.37%
EPS(NY)3.3
Fwd EY26.21%
FCF(TTM)4.21
FCFY33.41%
OCF(TTM)7.8
OCFY61.95%
SpS74.71
BVpS18.53
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number37.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.45% | ||
| ROCE | 4.92% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.95% | ||
| OM | 3.6% | ||
| PM (TTM) | 3.34% | ||
| GM | 24.25% | ||
| FCFM | 5.63% |
ROA(3y)0.01%
ROA(5y)0.58%
ROE(3y)-0.32%
ROE(5y)2.05%
ROIC(3y)2.61%
ROIC(5y)N/A
ROICexc(3y)3.12%
ROICexc(5y)N/A
ROICexgc(3y)4.53%
ROICexgc(5y)N/A
ROCE(3y)4.4%
ROCE(5y)N/A
ROICexgc growth 3Y8.66%
ROICexgc growth 5Y-17.32%
ROICexc growth 3Y13.16%
ROICexc growth 5Y-10.47%
OM growth 3Y8.71%
OM growth 5Y-14.76%
PM growth 3Y-11.86%
PM growth 5YN/A
GM growth 3Y3.04%
GM growth 5Y0.17%
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 50.12% | ||
| Cap/Sales | 4.81% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 79.14% | ||
| Profit Quality | 168.79% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.02 |
F-Score8
WACC7.95%
ROIC/WACC0.36
Cap/Depr(3y)46.69%
Cap/Depr(5y)44.53%
Cap/Sales(3y)4.88%
Cap/Sales(5y)4.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.74%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%4.35%
EPS Next Y-6.17%
EPS Next 2Y-1.91%
EPS Next 3Y1.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.09%
Revenue growth 3Y-7.5%
Revenue growth 5Y-8.05%
Sales Q2Q%-0.96%
Revenue Next Year-1.36%
Revenue Next 2Y-1.88%
Revenue Next 3Y-1.66%
Revenue Next 5YN/A
EBIT growth 1Y-16.94%
EBIT growth 3Y0.55%
EBIT growth 5Y-21.62%
EBIT Next Year80.41%
EBIT Next 3Y20.19%
EBIT Next 5YN/A
FCF growth 1Y-48.03%
FCF growth 3Y-4.75%
FCF growth 5Y-14.28%
OCF growth 1Y-33.8%
OCF growth 3Y-3.44%
OCF growth 5Y-9.87%
DXC TECHNOLOGY CO / DXC FAQ
What is the ChartMill fundamental rating of DXC TECHNOLOGY CO (DXC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DXC.
What is the valuation status of DXC TECHNOLOGY CO (DXC) stock?
ChartMill assigns a valuation rating of 7 / 10 to DXC TECHNOLOGY CO (DXC). This can be considered as Undervalued.
What is the profitability of DXC stock?
DXC TECHNOLOGY CO (DXC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for DXC stock?
The Price/Earnings (PE) ratio for DXC TECHNOLOGY CO (DXC) is 3.79 and the Price/Book (PB) ratio is 0.68.
What is the expected EPS growth for DXC TECHNOLOGY CO (DXC) stock?
The Earnings per Share (EPS) of DXC TECHNOLOGY CO (DXC) is expected to decline by -6.17% in the next year.