DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
NYSE:DXC • US23355L1061
12.885 USD
-0.94 (-6.77%)
Last: Feb 12, 2026, 01:27 PM
DXC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 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.
- 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'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.
- With a decent Return On Equity value of 13.45%, DXC is doing good in the industry, outperforming 74.71% of the companies in the same industry.
- With a Return On Invested Capital value of 2.89%, DXC perfoms like the industry average, outperforming 55.17% 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 10.57%.
- 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
- With a Profit Margin value of 3.34%, DXC perfoms like the industry average, outperforming 57.47% of the companies in the same industry.
- DXC's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 3.60%, DXC perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
- DXC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 24.25%, DXC is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
- 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
- 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.
- DXC has less shares outstanding than it did 5 years ago.
- DXC has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.03, 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 1.03, DXC is doing worse than 65.52% 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 has a Debt to FCF ratio (5.08) which is comparable to the rest of the 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 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.37
WACC7.78%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that DXC should not have too much problems paying its short term obligations.
- With a Current 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.
- 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 66.67% 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.
- The Earnings Per Share has been decreasing by -9.24% on average over the past years.
- 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
- The Earnings Per Share is expected to grow by 1.53% on average over the next years.
- Based on estimates for the next years, DXC will show a decrease in Revenue. The Revenue will decrease by -1.65% 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-1.87%
Revenue Next 3Y-1.65%
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.
- 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
- The Price/Earnings ratio is 3.88, which indicates a rather cheap valuation of DXC.
- 94.25% of the companies in the same industry are more expensive than DXC, based on the Price/Earnings ratio.
- DXC is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 3.90, the valuation of DXC can be described as very cheap.
- 94.25% of the companies in the same industry are more expensive than DXC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.88 | ||
| Fwd PE | 3.9 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 97.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.14 | ||
| EV/EBITDA | 2.33 |
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
- DXC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:DXC (2/12/2026, 1:27:04 PM)
12.885
-0.94 (-6.77%)
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-1.7%
Ins Owners1.2%
Ins Owner Change1.23%
Market Cap2.24B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts50
Price Target15.22 (18.12%)
Short Float %6.95%
Short Ratio5.86
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)-5.35%
PT rev (3m)-7.94%
EPS NQ rev (1m)-11.34%
EPS NQ rev (3m)-11.34%
EPS NY rev (1m)1.88%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.88 | ||
| Fwd PE | 3.9 | ||
| P/S | 0.18 | ||
| P/FCF | 3.14 | ||
| P/OCF | 1.69 | ||
| P/B | 0.71 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 2.33 |
EPS(TTM)3.32
EY25.77%
EPS(NY)3.3
Fwd EY25.61%
FCF(TTM)4.1
FCFY31.82%
OCF(TTM)7.6
OCFY59.01%
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 | 1.03 |
F-Score8
WACC7.78%
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-1.87%
Revenue Next 3Y-1.65%
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 3.88 and the Price/Book (PB) ratio is 0.71.
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.