DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DXC • US23355L1061
14.23 USD
-0.36 (-2.47%)
Last: Feb 11, 2026, 11:12 AM
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. There are concerns on the financial health of DXC while its profitability can be described as average. DXC is valued quite cheap, but it does not seem to be growing.
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.
- The reported net income has been mixed in the past 5 years: DXC reported negative net income in multiple years.
- In the past 5 years DXC always reported a positive cash flow from operatings.
1.2 Ratios
- DXC has a Return On Assets of 3.21%. This is comparable to the rest of the industry: DXC outperforms 59.77% of its industry peers.
- DXC's Return On Equity of 13.45% is fine compared to the rest of the industry. DXC outperforms 74.71% 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 55.17% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DXC is significantly below the industry average of 10.61%.
- 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 of 3.34%. This is comparable to the rest of the industry: DXC outperforms 57.47% of its industry peers.
- In the last couple of years the Profit Margin of DXC has declined.
- DXC has a Operating Margin of 3.60%. This is comparable 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's Gross Margin of 24.25% is on the low side compared to the rest of the industry. DXC is outperformed by 72.41% of its industry peers.
- DXC's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- The debt/assets ratio for DXC has been reduced compared to a year ago.
2.2 Solvency
- DXC has an Altman-Z score of 1.04. This is a bad value and indicates that DXC is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of DXC (1.04) is worse than 65.52% 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.
- With a Debt to FCF ratio value of 5.08, DXC perfoms like the industry average, outperforming 54.02% of the companies in the same 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 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.37
WACC7.85%
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.
- Looking at the Current ratio, with a value of 1.35, DXC is doing worse than 66.67% of the companies in the same industry.
- 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.
- The Revenue has decreased by -3.09% in the past 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
- The Earnings Per Share is expected to grow by 1.53% on average over the next years.
- The Revenue is expected to decrease by -1.65% 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-1.87%
Revenue Next 3Y-1.65%
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. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 4.29, the valuation of DXC can be described as very cheap.
- Based on the Price/Earnings ratio, DXC is valued cheaply inside the industry as 94.25% of the companies are valued more expensively.
- DXC is valuated cheaply when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 4.31, which indicates a rather cheap valuation of DXC.
- 94.25% of the companies in the same industry are more expensive than DXC, based on the Price/Forward Earnings ratio.
- DXC is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 4.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DXC is valued cheaper than 98.85% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DXC is valued cheaply inside the industry as 97.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 2.41 |
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% |
NYSE:DXC (2/11/2026, 11:12:02 AM)
14.23
-0.36 (-2.47%)
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-1.7%
Ins Owners1.2%
Ins Owner Change1.23%
Market Cap2.48B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts50
Price Target15.22 (6.96%)
Short Float %6.95%
Short Ratio5.86
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)-5.35%
PT rev (3m)-7.94%
EPS NQ rev (1m)-11.34%
EPS NQ rev (3m)-11.34%
EPS NY rev (1m)1.88%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 4.31 | ||
| P/S | 0.2 | ||
| P/FCF | 3.47 | ||
| P/OCF | 1.87 | ||
| P/B | 0.79 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 2.41 |
EPS(TTM)3.32
EY23.33%
EPS(NY)3.3
Fwd EY23.19%
FCF(TTM)4.1
FCFY28.82%
OCF(TTM)7.6
OCFY53.43%
SpS72.84
BVpS18.06
TBVpS4.87
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.73
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 | 1.04 |
F-Score8
WACC7.85%
ROIC/WACC0.37
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-1.87%
Revenue Next 3Y-1.65%
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 4.29 and the Price/Book (PB) ratio is 0.79.
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.