DXC TECHNOLOGY CO (DXC) Fundamental Analysis & Valuation

NYSE:DXC • US23355L1061

Current stock price

12.76 USD
+0.1 (+0.79%)
At close:
12.7 USD
-0.06 (-0.47%)
After Hours:

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.
  • 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.
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

  • The Return On Assets of DXC (3.21%) is better than 62.50% of its industry peers.
  • With a decent Return On Equity value of 13.45%, DXC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 2.89%, DXC is in line with its industry, outperforming 56.82% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DXC is significantly below the industry average of 11.10%.
  • 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

  • Looking at the Profit Margin, with a value of 3.34%, DXC is in line with its industry, outperforming 57.95% of the companies in the same industry.
  • In the last couple of years the Profit Margin of DXC has declined.
  • With a Operating Margin value of 3.60%, DXC perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
  • DXC's Operating Margin has declined in the last couple of years.
  • DXC has a Gross Margin of 24.25%. This is in the lower half of the industry: DXC underperforms 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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

  • 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.
  • The Altman-Z score of DXC (1.02) is worse than 68.18% of its industry peers.
  • The Debt to FCF ratio of DXC is 5.08, which is a neutral value as it means it would take DXC, 5.08 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 5.08, DXC perfoms like the industry average, outperforming 57.95% 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's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. DXC is outperformed by 64.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 5.08
Altman-Z 1.02
ROIC/WACC0.37
WACC7.88%
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.
  • Looking at the Quick ratio, with a value of 1.35, DXC is doing worse than 62.50% of the companies in the same industry.
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

  • 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%.
  • 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

  • Based on estimates for the next years, DXC will show a small growth in Earnings Per Share. The EPS will grow by 1.58% on average per year.
  • DXC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.66% yearly.
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

  • 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.
  • 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

  • The Price/Earnings ratio is 3.84, which indicates a rather cheap valuation of DXC.
  • Based on the Price/Earnings ratio, DXC is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, DXC is valued rather cheaply.
  • DXC is valuated cheaply with a Price/Forward Earnings ratio of 3.86.
  • DXC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DXC is cheaper than 95.45% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, DXC is valued rather cheaply.
Industry RankSector Rank
PE 3.84
Fwd PE 3.86
DXC Price Earnings VS Forward Price EarningsDXC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DXC is valued cheaper than 97.73% of the companies in the same industry.
  • 96.59% of the companies in the same industry are more expensive than DXC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.03
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-1.84%
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 (4/6/2026, 8:04:00 PM)

After market: 12.7 -0.06 (-0.47%)

12.76

+0.1 (+0.79%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-29
Earnings (Next)05-12
Inst Owners98.18%
Inst Owner Change0%
Ins Owners1.24%
Ins Owner Change0.12%
Market Cap2.17B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.22 (19.28%)
Short Float %11.7%
Short Ratio7.38
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%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE 3.84
Fwd PE 3.86
P/S 0.17
P/FCF 3.03
P/OCF 1.64
P/B 0.69
P/tB 2.55
EV/EBITDA 2.19
EPS(TTM)3.32
EY26.02%
EPS(NY)3.3
Fwd EY25.9%
FCF(TTM)4.21
FCFY32.96%
OCF(TTM)7.8
OCFY61.12%
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 1.02
F-Score8
WACC7.88%
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-6.43%
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 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 3.84 and the Price/Book (PB) ratio is 0.69.


Can you provide the financial health for DXC stock?

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