DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DXC • US23355L1061
13.535 USD
-1.74 (-11.42%)
Last: Feb 3, 2026, 02:27 PM
DXC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 88 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- DXC had positive earnings in the past year.
- In the past year DXC had a positive cash flow from operations.
- 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
- DXC's Return On Assets of 3.21% is fine compared to the rest of the industry. DXC outperforms 60.23% of its industry peers.
- DXC's Return On Equity of 13.45% is fine compared to the rest of the industry. DXC outperforms 75.00% of its industry peers.
- DXC has a Return On Invested Capital (2.89%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DXC is significantly below the industry average of 29.07%.
- 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.
- DXC's Operating Margin has declined in the last couple of years.
- DXC has a worse Gross Margin (24.25%) than 71.59% 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
- 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
- Compared to 5 years ago, DXC has less shares outstanding
- DXC has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.05, 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 1.05, DXC is doing worse than 65.91% 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's Debt to FCF ratio of 5.08 is in line compared to the rest of the industry. DXC outperforms 54.55% 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.
- Looking at the Debt to Equity ratio, with a value of 1.11, DXC is doing worse than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.36
WACC7.93%
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 65.91% 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 65.91% 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.
- DXC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.24% yearly.
- 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 decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.33% yearly.
- DXC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.41% yearly.
EPS Next Y-7.87%
EPS Next 2Y-3.86%
EPS Next 3Y-0.33%
EPS Next 5YN/A
Revenue Next Year-1.16%
Revenue Next 2Y-1.84%
Revenue Next 3Y-1.41%
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
- Based on the Price/Earnings ratio of 4.08, the valuation of DXC can be described as very cheap.
- Based on the Price/Earnings ratio, DXC is valued cheaper than 94.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DXC to the average of the S&P500 Index (28.41), we can say DXC is valued rather cheaply.
- DXC is valuated cheaply with a Price/Forward Earnings ratio of 4.27.
- 95.45% of the companies in the same industry are more expensive than DXC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DXC to the average of the S&P500 Index (25.64), we can say DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 4.27 |
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 98.86% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 97.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.3 | ||
| EV/EBITDA | 2.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.86%
EPS Next 3Y-0.33%
5. Dividend
5.1 Amount
- No dividends for DXC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:DXC (2/3/2026, 2:27:09 PM)
13.535
-1.74 (-11.42%)
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-0.45%
Ins Owners1.2%
Ins Owner Change0.99%
Market Cap2.36B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts50
Price Target16.19 (19.62%)
Short Float %N/A
Short RatioN/A
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)0.7%
PT rev (3m)-2.06%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-4.62%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 4.27 | ||
| P/S | 0.19 | ||
| P/FCF | 3.3 | ||
| P/OCF | 1.78 | ||
| P/B | 0.75 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 2.48 |
EPS(TTM)3.32
EY24.53%
EPS(NY)3.17
Fwd EY23.42%
FCF(TTM)4.1
FCFY30.29%
OCF(TTM)7.6
OCFY56.18%
SpS72.84
BVpS18.06
TBVpS4.87
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.73
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 | 1.05 |
F-Score8
WACC7.93%
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-7.87%
EPS Next 2Y-3.86%
EPS Next 3Y-0.33%
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-1.16%
Revenue Next 2Y-1.84%
Revenue Next 3Y-1.41%
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 4.08 and the Price/Book (PB) ratio is 0.75.
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 -7.87% in the next year.