DXC TECHNOLOGY CO (DXC) Fundamental Analysis & Valuation
NYSE:DXC • US23355L1061
12.95 USD
-0.24 (-1.82%)
At close: Mar 6, 2026
12.95 USD
0 (0%)
After Hours: 3/6/2026, 8:13:02 PM
This DXC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 3 out of 10 to DXC. DXC was compared to 86 industry peers in the IT Services industry. DXC has a medium profitability rating, but doesn't score so well on its financial health evaluation. DXC has a bad growth rate and is valued cheaply.
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.
- DXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DXC has a Return On Assets (3.21%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 13.45%, DXC is in the better half of the industry, outperforming 73.26% 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 54.65% of the companies in the same industry.
- DXC had an Average Return On Invested Capital over the past 3 years of 2.61%. This is significantly below the industry average of 10.85%.
- 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
- With a Profit Margin value of 3.34%, DXC perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of DXC has declined.
- 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 Gross Margin of 24.25%. This is in the lower half of the industry: DXC underperforms 72.09% 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. 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
- DXC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DXC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that DXC is in the distress zone and has some risk of bankruptcy.
- DXC has a worse Altman-Z score (1.02) than 65.12% 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 (5.08) which is comparable to the rest of the industry.
- 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 66.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.37
WACC7.79%
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 65.12% 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.
- DXC has a Quick ratio of 1.35. This is in the lower half of the industry: DXC underperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
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%.
- Measured over the past years, DXC shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.24% on average per year.
- Looking at the last year, DXC shows a decrease in Revenue. The Revenue has decreased by -3.09% in the last 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
- 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.
- Based on estimates for the next years, DXC will show a decrease in Revenue. The Revenue will decrease by -1.66% on average per year.
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-1.88%
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.
- 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. DXC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 3.90, the valuation of DXC can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 94.19% of the companies listed in the same industry.
- DXC is valuated cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 3.92, the valuation of DXC can be described as very cheap.
- DXC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DXC is cheaper than 95.35% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DXC to the average of the S&P500 Index (24.57), we can say DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.9 | ||
| Fwd PE | 3.92 |
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 97.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, DXC is valued cheaper than 98.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.08 | ||
| EV/EBITDA | 2.23 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.91%
EPS Next 3Y1.53%
5. DXC Dividend Analysis
5.1 Amount
- DXC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DXC Fundamentals: All Metrics, Ratios and Statistics
12.95
-0.24 (-1.82%)
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 Owners98.18%
Inst Owner Change-0.77%
Ins Owners1.24%
Ins Owner Change0.09%
Market Cap2.20B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.22 (17.53%)
Short Float %9.4%
Short Ratio6.73
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)-6.01%
PT rev (3m)-5.35%
EPS NQ rev (1m)-12.27%
EPS NQ rev (3m)-12.27%
EPS NY rev (1m)1.85%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.9 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.17 | ||
| P/FCF | 3.08 | ||
| P/OCF | 1.66 | ||
| P/B | 0.7 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 2.23 |
EPS(TTM)3.32
EY25.64%
EPS(NY)3.3
Fwd EY25.49%
FCF(TTM)4.21
FCFY32.48%
OCF(TTM)7.8
OCFY60.23%
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 | 1.02 |
F-Score8
WACC7.79%
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-6.17%
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-1.88%
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 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 3.9 and the Price/Book (PB) ratio is 0.7.
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.