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 86 industry peers in the IT Services industry. While DXC is still in line with the averages on profitability rating, there are concerns on its financial health. DXC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- DXC had positive earnings in the past year.
- DXC had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: DXC reported negative net income in multiple 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 line with its industry, outperforming 59.77% of the companies in the same industry.
- 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.
- With a Return On Invested Capital value of 2.89%, DXC perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
- DXC had an Average Return On Invested Capital over the past 3 years of 2.61%. This is significantly below the industry average of 10.76%.
- 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 (3.60%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DXC has declined.
- DXC has a Gross Margin of 24.25%. This is in the lower half of the industry: DXC underperforms 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
- DXC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- DXC has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for DXC has been reduced compared to 5 years ago.
- DXC has a better debt/assets ratio than last year.
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: 64.37% 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's Debt to FCF ratio of 5.08 is in line compared to the rest of the industry. DXC outperforms 56.32% of its industry peers.
- A Debt/Equity ratio of 1.11 is on the high side and indicates that DXC has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.11, DXC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.36
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that DXC should not have too much problems paying 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 65.52% 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's Quick ratio of 1.35 is on the low side compared to the rest of the industry. DXC is outperformed by 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The earnings per share for DXC have decreased by -6.74% in the last year.
- The Earnings Per Share has been decreasing by -9.24% on average over the past years.
- DXC shows a decrease in Revenue. In the last year, the revenue decreased by -3.09%.
- 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 1.53% yearly.
- 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.
- 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
- A Price/Earnings ratio of 3.79 indicates a rather cheap valuation of DXC.
- Based on the Price/Earnings ratio, DXC is valued cheaply inside the industry as 94.25% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.07, DXC is valued rather cheaply.
- DXC is valuated cheaply with a Price/Forward Earnings ratio of 3.81.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 94.25% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DXC to the average of the S&P500 Index (28.05), we can say DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.79 | ||
| Fwd PE | 3.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 98.85% of the companies listed in the same industry.
- DXC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DXC is cheaper than 98.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.99 | ||
| EV/EBITDA | 2.17 |
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-0.77%
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)-1.21%
Revenue NQ rev (3m)-1.15%
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 | 2.17 |
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 Year77.66%
EBIT Next 3Y19.89%
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.