DXC TECHNOLOGY CO (DXC) Fundamental Analysis & Valuation
NYSE:DXC • US23355L1061
Current stock price
13.31 USD
+0.34 (+2.62%)
At close:
13.4 USD
+0.09 (+0.68%)
Pre-Market:
This DXC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DXC Profitability Analysis
1.1 Basic Checks
- DXC had positive earnings in the past year.
- 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.
- Each year in the past 5 years DXC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.21%, DXC is in the better half of the industry, outperforming 60.23% of the companies in the same industry.
- DXC has a better Return On Equity (13.45%) than 72.73% of its industry peers.
- DXC's Return On Invested Capital of 2.89% is in line compared to the rest of the industry. DXC outperforms 56.82% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DXC is significantly below the industry average of 10.44%.
- The last Return On Invested Capital (2.89%) for DXC is above the 3 year average (2.61%), which is a sign of increasing profitability.
| 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
- DXC has a Profit Margin (3.34%) which is comparable to the rest of the industry.
- DXC's Profit Margin has declined in the last couple of years.
- DXC has a Operating Margin of 3.60%. This is comparable to the rest of the industry: DXC outperforms 52.27% of its industry peers.
- In the last couple of years the Operating Margin of DXC has declined.
- DXC's Gross Margin of 24.25% is on the low side compared to the rest of the industry. DXC is outperformed by 68.18% 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. DXC Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DXC is destroying value.
- DXC has more shares outstanding than it did 1 year ago.
- DXC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DXC has an improved debt to assets ratio.
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.
- With a Altman-Z score value of 1.02, DXC is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- 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 (5.08) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.11 is on the high side and indicates that DXC has dependencies on debt financing.
- DXC has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: DXC underperforms 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.35
WACC8.27%
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 62.50% 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.
- DXC has a Quick ratio of 1.35. This is in the lower half of the industry: DXC underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. DXC Growth Analysis
3.1 Past
- The earnings per share for DXC have decreased by -6.74% in the last year.
- Measured over the past years, DXC shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.24% on average per year.
- Looking at the last year, DXC shows a decrease in Revenue. The Revenue has decreased by -3.09% in the last year.
- The Revenue has been decreasing by -8.05% on average over the past years.
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
- DXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.60% yearly.
- Based on estimates for the next years, DXC will show a decrease in Revenue. The Revenue will decrease by -1.70% on average per year.
EPS Next Y-6.43%
EPS Next 2Y-1.82%
EPS Next 3Y1.6%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y-1.9%
Revenue Next 3Y-1.7%
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.
- 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. DXC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 4.01, which indicates a rather cheap valuation of DXC.
- Based on the Price/Earnings ratio, DXC is valued cheaper than 94.32% of the companies in the same industry.
- DXC is valuated cheaply when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 4.03 indicates a rather cheap valuation of DXC.
- Based on the Price/Forward Earnings ratio, DXC is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 38.68, DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.01 | ||
| Fwd PE | 4.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DXC is valued cheaper than 97.73% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 98.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.16 | ||
| EV/EBITDA | 2.24 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.82%
EPS Next 3Y1.6%
5. DXC Dividend Analysis
5.1 Amount
- DXC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DXC Fundamentals: All Metrics, Ratios and Statistics
13.31
+0.34 (+2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)05-07 2026-05-07/amc
Inst Owners98.16%
Inst Owner Change0.25%
Ins Owners1.13%
Ins Owner Change0.12%
Market Cap2.26B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.09 (13.37%)
Short Float %12.83%
Short Ratio7.48
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)-0.84%
PT rev (3m)-6.8%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-12.33%
EPS NY rev (1m)0%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.01 | ||
| Fwd PE | 4.03 | ||
| P/S | 0.18 | ||
| P/FCF | 3.16 | ||
| P/OCF | 1.71 | ||
| P/B | 0.72 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 2.24 |
EPS(TTM)3.32
EY24.94%
EPS(NY)3.31
Fwd EY24.84%
FCF(TTM)4.21
FCFY31.6%
OCF(TTM)7.8
OCFY58.6%
SpS74.71
BVpS18.53
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number37.2009 (179.5%)
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
WACC8.27%
ROIC/WACC0.35
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-6.43%
EPS Next 2Y-1.82%
EPS Next 3Y1.6%
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-1.9%
Revenue Next 3Y-1.7%
Revenue Next 5YN/A
EBIT growth 1Y-16.94%
EBIT growth 3Y0.55%
EBIT growth 5Y-21.62%
EBIT Next Year77.66%
EBIT Next 3Y19.8%
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 Fundamental Analysis 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 for DXC stock?
ChartMill assigns a valuation rating of 7 / 10 to DXC TECHNOLOGY CO (DXC). This can be considered as Undervalued.
How profitable is DXC TECHNOLOGY CO (DXC) stock?
DXC TECHNOLOGY CO (DXC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of DXC TECHNOLOGY CO (DXC) stock?
The Price/Earnings (PE) ratio for DXC TECHNOLOGY CO (DXC) is 4.01 and the Price/Book (PB) ratio is 0.72.
Can you provide the financial health for DXC stock?
The financial health rating of DXC TECHNOLOGY CO (DXC) is 3 / 10.