DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
NYSE:DXC • US23355L1061
13.35 USD
+0.01 (+0.07%)
At close: Feb 20, 2026
13.4028 USD
+0.05 (+0.4%)
After Hours: 2/20/2026, 8:04:00 PM
We assign a fundamental rating of 3 out of 10 to DXC. 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.
- 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's Return On Assets of 3.21% is in line compared to the rest of the industry. DXC outperforms 59.77% of its industry peers.
- DXC has a Return On Equity of 13.45%. This is in the better half of the industry: DXC outperforms 75.86% of its industry peers.
- DXC has a Return On Invested Capital (2.89%) which is comparable to the rest of the 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 10.62%.
- 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
- DXC has a Profit Margin (3.34%) which is in line with its industry peers.
- DXC's Profit Margin has declined in the last couple of years.
- DXC has a Operating Margin of 3.60%. This is comparable to the rest of the industry: DXC outperforms 50.57% of its industry peers.
- 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 72.41% 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 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DXC is destroying value.
- The number of shares outstanding for DXC has been increased compared to 1 year ago.
- Compared to 5 years ago, DXC has less shares outstanding
- The debt/assets ratio for DXC has been reduced compared to a year ago.
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 66.67% 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.
- With a Debt to FCF ratio value of 5.08, DXC perfoms like the industry average, outperforming 55.17% 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 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 | 1.02 |
ROIC/WACC0.36
WACC8.09%
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 Current ratio of 1.35. This is in the lower half of the industry: DXC underperforms 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.
- With a Quick ratio value of 1.35, DXC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 1.53% on average over the next years.
- The Revenue is expected to decrease by -1.66% on average over the next years.
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
- 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
- A Price/Earnings ratio of 4.02 indicates a rather cheap valuation of DXC.
- Based on the Price/Earnings ratio, DXC is valued cheaper than 95.40% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DXC to the average of the S&P500 Index (26.99), we can say DXC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 4.04, the valuation of DXC can be described as very cheap.
- Based on the Price/Forward Earnings ratio, DXC is valued cheaper than 94.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. DXC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.02 | ||
| Fwd PE | 4.04 |
4.2 Price Multiples
- DXC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DXC is cheaper than 98.85% of the companies in the same industry.
- DXC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DXC is cheaper than 98.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.17 | ||
| EV/EBITDA | 2.25 |
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% |
13.35
+0.01 (+0.07%)
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-1.81%
Ins Owners1.2%
Ins Owner Change0.09%
Market Cap2.27B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.22 (14.01%)
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)-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)-0.9%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.21%
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 | 2.25 |
EPS(TTM)3.32
EY24.87%
EPS(NY)3.3
Fwd EY24.72%
FCF(TTM)4.21
FCFY31.51%
OCF(TTM)7.8
OCFY58.42%
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
WACC8.09%
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-1.88%
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 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.