DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
NYSE:DXC • US23355L1061
13.34 USD
-0.22 (-1.62%)
At close: Feb 19, 2026
13.34 USD
0 (0%)
After Hours: 2/19/2026, 8:04:00 PM
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
- DXC had positive earnings in the past year.
- DXC had a positive operating cash flow in the past year.
- In multiple years DXC reported negative net income over the last 5 years.
- DXC had a positive operating cash flow in each of the past 5 years.
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 75.86% 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 10.62%.
- The 3 year average ROIC (2.61%) for DXC is below the current ROIC(2.89%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 3.34%, DXC is in line with its industry, outperforming 57.47% of the companies in the same 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.
- DXC's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 24.25%, DXC is doing worse than 72.41% of the companies in the same industry.
- 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.
- The number of shares outstanding for DXC has been increased compared to 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 1.03, we must say that DXC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.03, DXC is doing worse than 66.67% of the companies in the same industry.
- 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 worse Debt to Equity ratio (1.11) than 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.36
WACC8.1%
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.
- The Current ratio of DXC (1.35) is worse than 66.67% of its industry peers.
- A Quick Ratio of 1.35 indicates that DXC should not have too much problems paying 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.
- DXC shows a decrease in Revenue. In the last year, the revenue decreased by -3.09%.
- 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
- Based on estimates for the next years, DXC will show a small growth in Earnings Per Share. The EPS will grow by 1.53% on average per year.
- DXC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.65% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- DXC is valuated cheaply with a Price/Earnings ratio of 4.02.
- Based on the Price/Earnings ratio, DXC is valued cheaper than 94.25% of the companies in the same industry.
- DXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.09.
- DXC is valuated cheaply with a Price/Forward Earnings ratio of 4.04.
- Based on the Price/Forward Earnings ratio, DXC is valued cheaper than 94.25% of the companies in the same industry.
- DXC is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.02 | ||
| Fwd PE | 4.04 |
4.2 Price Multiples
- 98.85% of the companies in the same industry are more expensive than DXC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 98.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.17 | ||
| EV/EBITDA | 2.27 |
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% |
13.34
-0.22 (-1.62%)
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-1.78%
Ins Owners1.2%
Ins Owner Change0.16%
Market Cap2.26B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.22 (14.09%)
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)-5.35%
PT rev (3m)-7.94%
EPS NQ rev (1m)-12.27%
EPS NQ rev (3m)-12.27%
EPS NY rev (1m)1.88%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.02 | ||
| Fwd PE | 4.04 | ||
| P/S | 0.18 | ||
| P/FCF | 3.17 | ||
| P/OCF | 1.71 | ||
| P/B | 0.72 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)3.32
EY24.89%
EPS(NY)3.3
Fwd EY24.74%
FCF(TTM)4.21
FCFY31.53%
OCF(TTM)7.8
OCFY58.47%
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 | 1.03 |
F-Score8
WACC8.1%
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-1.87%
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 4.02 and the Price/Book (PB) ratio is 0.72.
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.