DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
NYSE:DXC - New York Stock Exchange, Inc. - US23355L1061 - Common Stock
Overall DXC gets a fundamental rating of 3 out of 10. We evaluated DXC against 82 industry peers in the IT Services industry. DXC has a bad profitability rating. Also its financial health evaluation is rather negative. DXC has a bad growth rate and is valued cheaply.
1. Profitability
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.
DXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DXC has a Return On Assets (0.18%) which is comparable to the rest of the industry.
DXC has a Return On Equity of 0.81%. This is comparable to the rest of the industry: DXC outperforms 55.70% of its industry peers.
With a Return On Invested Capital value of 3.22%, DXC perfoms like the industry average, outperforming 54.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DXC is significantly below the industry average of 9.86%.
The 3 year average ROIC (2.21%) for DXC is below the current ROIC(3.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.81% | ||
| ROIC | 3.22% |
ROA(3y)0.21%
ROA(5y)-4.14%
ROE(3y)0.4%
ROE(5y)-22.8%
ROIC(3y)2.21%
ROIC(5y)N/A
1.3 Margins
DXC has a Profit Margin (0.18%) which is in line with its industry peers.
DXC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.87%, DXC perfoms like the industry average, outperforming 54.43% 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 23.26%, DXC is doing worse than 72.15% of the companies in the same industry.
In the last couple of years the Gross Margin of DXC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.87% | ||
| PM (TTM) | 0.18% | ||
| GM | 23.26% |
OM growth 3YN/A
OM growth 5Y-23.65%
PM growth 3YN/A
PM growth 5Y-35.7%
GM growth 3Y3.25%
GM growth 5Y-4.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DXC is destroying value.
The number of shares outstanding for DXC has been reduced compared to 1 year ago.
DXC has less shares outstanding than it did 5 years ago.
DXC has a worse debt/assets ratio than last year.
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 69.62% of its industry peers.
The Debt to FCF ratio of DXC is 4.88, which is a neutral value as it means it would take DXC, 4.88 years of fcf income to pay off all of its debts.
DXC has a Debt to FCF ratio (4.88) which is in line with its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that DXC has dependencies on debt financing.
DXC's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. DXC is outperformed by 70.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.88 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.33
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.25 indicates that DXC should not have too much problems paying its short term obligations.
DXC's Current ratio of 1.25 is on the low side compared to the rest of the industry. DXC is outperformed by 67.09% of its industry peers.
DXC has a Quick Ratio of 1.25. 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 Quick ratio of 1.25. This is in the lower half of the industry: DXC underperforms 65.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.36% over the past year.
The earnings per share for DXC have been decreasing by -17.65% on average. This is quite bad
Looking at the last year, DXC shows a decrease in Revenue. The Revenue has decreased by -5.53% in the last year.
Measured over the past years, DXC shows a decrease in Revenue. The Revenue has been decreasing by -8.01% on average per year.
EPS 1Y (TTM)6.36%
EPS 3Y9.27%
EPS 5Y-17.65%
EPS Q2Q%32.86%
Revenue 1Y (TTM)-5.53%
Revenue growth 3Y-8.31%
Revenue growth 5Y-8.01%
Sales Q2Q%-5.68%
3.2 Future
DXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.01% yearly.
The Revenue is expected to decrease by -2.53% on average over the next years.
EPS Next Y1.14%
EPS Next 2Y2.26%
EPS Next 3Y5.01%
EPS Next 5YN/A
Revenue Next Year-4.85%
Revenue Next 2Y-3.47%
Revenue Next 3Y-2.53%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.95 indicates a rather cheap valuation of DXC.
Based on the Price/Earnings ratio, DXC is valued cheaper than 94.94% of the companies in the same industry.
DXC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.30, the valuation of DXC can be described as very cheap.
97.47% of the companies in the same industry are more expensive than DXC, based on the Price/Forward Earnings ratio.
DXC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXC is valued cheaper than 96.20% of the companies 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 97.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 3.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.19
PEG (5Y)N/A
EPS Next 2Y2.26%
EPS Next 3Y5.01%
5. Dividend
5.1 Amount
No dividends for DXC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DXC TECHNOLOGY CO
NYSE:DXC (1/21/2025, 8:04:00 PM)
After market: 20.87 0 (0%)20.87
+0.39 (+1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.75%
Inst Owner Change0.39%
Ins Owners0.76%
Ins Owner Change0.23%
Market Cap3.78B
Analysts50
Price Target22.39 (7.28%)
Short Float %4.35%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)27.39%
Min EPS beat(2)26.72%
Max EPS beat(2)28.05%
EPS beat(4)4
Avg EPS beat(4)20.59%
Min EPS beat(4)11.62%
Max EPS beat(4)28.05%
EPS beat(8)6
Avg EPS beat(8)9.04%
EPS beat(12)7
Avg EPS beat(12)3.99%
EPS beat(16)11
Avg EPS beat(16)7.71%
Revenue beat(2)2
Avg Revenue beat(2)1.15%
Min Revenue beat(2)0.28%
Max Revenue beat(2)2.02%
Revenue beat(4)3
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)2.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)5
Avg Revenue beat(16)-0.85%
PT rev (1m)0%
PT rev (3m)11.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.7%
EPS NY rev (1m)0%
EPS NY rev (3m)10.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.28 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.67 | ||
| P/B | 1.27 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | 3.47 |
EPS(TTM)3.51
EY16.82%
EPS(NY)3.31
Fwd EY15.88%
FCF(TTM)4.59
FCFY21.97%
OCF(TTM)7.82
OCFY37.48%
SpS73.26
BVpS16.47
TBVpS2.54
PEG (NY)5.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.81% | ||
| ROCE | 5.4% | ||
| ROIC | 3.22% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 5.34% | ||
| OM | 3.87% | ||
| PM (TTM) | 0.18% | ||
| GM | 23.26% | ||
| FCFM | 6.26% |
ROA(3y)0.21%
ROA(5y)-4.14%
ROE(3y)0.4%
ROE(5y)-22.8%
ROIC(3y)2.21%
ROIC(5y)N/A
ROICexc(3y)2.64%
ROICexc(5y)N/A
ROICexgc(3y)4.02%
ROICexgc(5y)N/A
ROCE(3y)3.75%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-33.14%
ROICexc growth 3YN/A
ROICexc growth 5Y-17.99%
OM growth 3YN/A
OM growth 5Y-23.65%
PM growth 3YN/A
PM growth 5Y-35.7%
GM growth 3Y3.25%
GM growth 5Y-4.17%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.88 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 42.4% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 1.78 | ||
| Cash Conversion | 74.72% | ||
| Profit Quality | 3458.33% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.02 |
F-Score8
WACC9.76%
ROIC/WACC0.33
Cap/Depr(3y)43.15%
Cap/Depr(5y)42.53%
Cap/Sales(3y)4.6%
Cap/Sales(5y)4.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.36%
EPS 3Y9.27%
EPS 5Y-17.65%
EPS Q2Q%32.86%
EPS Next Y1.14%
EPS Next 2Y2.26%
EPS Next 3Y5.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.53%
Revenue growth 3Y-8.31%
Revenue growth 5Y-8.01%
Sales Q2Q%-5.68%
Revenue Next Year-4.85%
Revenue Next 2Y-3.47%
Revenue Next 3Y-2.53%
Revenue Next 5YN/A
EBIT growth 1Y159.51%
EBIT growth 3YN/A
EBIT growth 5Y-29.77%
EBIT Next Year105.63%
EBIT Next 3Y26.42%
EBIT Next 5YN/A
FCF growth 1Y28.28%
FCF growth 3YN/A
FCF growth 5Y-1.87%
OCF growth 1Y5.59%
OCF growth 3Y181.52%
OCF growth 5Y-5.26%