DXC TECHNOLOGY CO (DXC) Fundamental Analysis & Valuation

NYSE:DXC • US23355L1061

Current stock price

11.705 USD
-1.12 (-8.7%)
Last:

This DXC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. DXC Profitability Analysis

1.1 Basic Checks

  • In the past year DXC was profitable.
  • DXC had a positive operating cash flow in the past year.
  • In multiple years DXC reported negative net income over the last 5 years.
  • In the past 5 years DXC always reported a positive cash flow from operatings.
DXC Yearly Net Income VS EBIT VS OCF VS FCFDXC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B -4B

1.2 Ratios

  • DXC has a Return On Assets of 3.21%. This is in the better half of the industry: DXC outperforms 60.23% of its industry peers.
  • DXC has a Return On Equity of 13.45%. This is in the better half of the industry: DXC outperforms 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.
  • DXC had an Average Return On Invested Capital over the past 3 years of 2.61%. This is significantly below the industry average of 10.44%.
  • The 3 year average ROIC (2.61%) for DXC is below the current ROIC(2.89%), indicating increased profibility in the last year.
Industry RankSector 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
DXC Yearly ROA, ROE, ROICDXC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60 -80 -100

1.3 Margins

  • DXC has a Profit Margin of 3.34%. This is comparable to the rest of the industry: DXC outperforms 57.95% of its industry peers.
  • In the last couple of years the Profit Margin of DXC has declined.
  • The Operating Margin of DXC (3.60%) is comparable to the rest of the industry.
  • 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 RankSector 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%
DXC Yearly Profit, Operating, Gross MarginsDXC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

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3

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.
DXC Yearly Shares OutstandingDXC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
DXC Yearly Total Debt VS Total AssetsDXC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • DXC has an Altman-Z score of 1.02. This is a bad value and indicates that DXC is not financially healthy and even has some risk of bankruptcy.
  • DXC's Altman-Z score of 1.02 is on the low side compared to the rest of the industry. DXC is outperformed by 68.18% 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 (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.
  • Looking at the Debt to Equity ratio, with a value of 1.11, DXC is doing worse than 64.77% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 5.08
Altman-Z 1.02
ROIC/WACC0.35
WACC8.19%
DXC Yearly LT Debt VS Equity VS FCFDXC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • A Current Ratio of 1.35 indicates that DXC should not have too much problems paying its short term obligations.
  • DXC has a worse Current ratio (1.35) than 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 worse Quick ratio (1.35) than 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.35
DXC Yearly Current Assets VS Current LiabilitesDXC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

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.
  • 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

  • DXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.60% yearly.
  • DXC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.70% yearly.
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.
DXC Yearly Revenue VS EstimatesDXC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
DXC Yearly EPS VS EstimatesDXC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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7

4. DXC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 3.53, which indicates a rather cheap valuation of DXC.
  • Compared to the rest of the industry, the Price/Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 94.32% of the companies listed in the same industry.
  • DXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
  • With a Price/Forward Earnings ratio of 3.54, the valuation of DXC can be described as very cheap.
  • 96.59% 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 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.53
Fwd PE 3.54
DXC Price Earnings VS Forward Price EarningsDXC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 97.73% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DXC is valued cheaply inside the industry as 98.86% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 2.78
EV/EBITDA 2.19
DXC Per share dataDXC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.82%
EPS Next 3Y1.6%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DXC Dividend Analysis

5.1 Amount

  • No dividends for DXC!.
Industry RankSector Rank
Dividend Yield 0%

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DXC Fundamentals: All Metrics, Ratios and Statistics

DXC TECHNOLOGY CO

NYSE:DXC (4/23/2026, 1:59:10 PM)

11.705

-1.12 (-8.7%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-29
Earnings (Next)05-07
Inst Owners98.16%
Inst Owner Change0.25%
Ins Owners1.13%
Ins Owner Change0.12%
Market Cap1.99B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.09 (28.92%)
Short Float %12.83%
Short Ratio7.48
Dividend
Industry RankSector 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 RankSector Rank
PE 3.53
Fwd PE 3.54
P/S 0.16
P/FCF 2.78
P/OCF 1.5
P/B 0.63
P/tB 2.34
EV/EBITDA 2.19
EPS(TTM)3.32
EY28.36%
EPS(NY)3.31
Fwd EY28.24%
FCF(TTM)4.21
FCFY35.93%
OCF(TTM)7.8
OCFY66.63%
SpS74.71
BVpS18.53
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number37.2009 (217.82%)
Profitability
Industry RankSector 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 RankSector 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
WACC8.19%
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 3.53 and the Price/Book (PB) ratio is 0.63.


Can you provide the financial health for DXC stock?

The financial health rating of DXC TECHNOLOGY CO (DXC) is 3 / 10.