DXC TECHNOLOGY CO (DXC) Fundamental Analysis & Valuation

NYSE:DXC • US23355L1061

Current stock price

11.83 USD
-0.11 (-0.92%)
At close:
12 USD
+0.17 (+1.44%)
Pre-Market:

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.
  • 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.
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

  • With a decent Return On Assets value of 3.21%, DXC is doing good in the industry, outperforming 62.07% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 13.45%, DXC is in the better half of the industry, outperforming 73.56% of the companies in the same industry.
  • DXC has a Return On Invested Capital (2.89%) which is in line with 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 10.73%.
  • 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 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 58.62% of its industry peers.
  • In the last couple of years the Profit Margin of DXC has declined.
  • Looking at the Operating Margin, with a value of 3.60%, DXC is in line with its industry, outperforming 51.72% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DXC has declined.
  • Looking at the Gross Margin, with a value of 24.25%, DXC is doing worse than 71.26% of the companies in the same industry.
  • 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.
  • Compared to 1 year ago, DXC has more shares outstanding
  • The number of shares outstanding for DXC has been reduced compared to 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

  • Based on the Altman-Z score of 1.01, we must say that DXC is in the distress zone and has some risk of bankruptcy.
  • DXC has a worse Altman-Z score (1.01) 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.
  • DXC has a Debt to FCF ratio of 5.08. This is comparable to the rest of the industry: DXC outperforms 57.47% 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.
  • The Debt to Equity ratio of DXC (1.11) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 5.08
Altman-Z 1.01
ROIC/WACC0.39
WACC7.48%
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

  • 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 has a Current ratio of 1.35. This is in the lower half of the industry: DXC underperforms 63.22% of its industry peers.
  • A Quick Ratio of 1.35 indicates that DXC should not have too much problems paying its short term obligations.
  • DXC has a worse Quick ratio (1.35) than 63.22% 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.
  • 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

  • The Earnings Per Share is expected to grow by 1.58% on average over the next years.
  • The Revenue is expected to decrease by -1.66% on average over the next years.
EPS Next Y-6.43%
EPS Next 2Y-1.84%
EPS Next 3Y1.58%
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.
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

  • DXC is valuated cheaply with a Price/Earnings ratio of 3.56.
  • Compared to the rest of the industry, the Price/Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 94.25% 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 25.71.
  • DXC is valuated cheaply with a Price/Forward Earnings ratio of 3.58.
  • 96.55% 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 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.56
Fwd PE 3.58
DXC Price Earnings VS Forward Price EarningsDXC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 cheaper than 98.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.81
EV/EBITDA 2.09
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-1.84%
EPS Next 3Y1.58%

More info and screens

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

0

5. DXC Dividend Analysis

5.1 Amount

  • DXC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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DXC Fundamentals: All Metrics, Ratios and Statistics

DXC TECHNOLOGY CO

NYSE:DXC (3/13/2026, 8:21:50 PM)

Premarket: 12 +0.17 (+1.44%)

11.83

-0.11 (-0.92%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-29
Earnings (Next)05-12
Inst Owners98.18%
Inst Owner Change-0.78%
Ins Owners1.24%
Ins Owner Change0.12%
Market Cap2.01B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.22 (28.66%)
Short Float %10.85%
Short Ratio7.55
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%
PT rev (3m)-5.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.27%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE 3.56
Fwd PE 3.58
P/S 0.16
P/FCF 2.81
P/OCF 1.52
P/B 0.64
P/tB 2.37
EV/EBITDA 2.09
EPS(TTM)3.32
EY28.06%
EPS(NY)3.3
Fwd EY27.94%
FCF(TTM)4.21
FCFY35.55%
OCF(TTM)7.8
OCFY65.93%
SpS74.71
BVpS18.53
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number37.2
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 1.01
F-Score8
WACC7.48%
ROIC/WACC0.39
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-1.84%
EPS Next 3Y1.58%
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 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 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 3.56 and the Price/Book (PB) ratio is 0.64.


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 -6.43% in the next year.