DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
NYSE:DELL - New York Stock Exchange, Inc. - US24703L2025 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DELL. DELL was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. DELL has a medium profitability rating, but doesn't score so well on its financial health evaluation. DELL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DELL had positive earnings in the past year.
DELL had a positive operating cash flow in the past year.
Each year in the past 5 years DELL has been profitable.
Each year in the past 5 years DELL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DELL (5.29%) is better than 71.88% of its industry peers.
With a decent Return On Invested Capital value of 16.53%, DELL is doing good in the industry, outperforming 78.13% of the companies in the same industry.
DELL had an Average Return On Invested Capital over the past 3 years of 15.70%. This is in line with the industry average of 16.14%.
The 3 year average ROIC (15.70%) for DELL is below the current ROIC(16.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | N/A | ||
| ROIC | 16.53% |
ROA(3y)4.2%
ROA(5y)4.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.7%
ROIC(5y)12.68%
1.3 Margins
With a decent Profit Margin value of 4.75%, DELL is doing good in the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Profit Margin of DELL has declined.
DELL has a Operating Margin of 7.19%. This is in the better half of the industry: DELL outperforms 65.63% of its industry peers.
In the last couple of years the Operating Margin of DELL has grown nicely.
DELL has a Gross Margin of 22.11%. This is in the lower half of the industry: DELL underperforms 65.63% of its industry peers.
In the last couple of years the Gross Margin of DELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.19% | ||
| PM (TTM) | 4.75% | ||
| GM | 22.11% |
OM growth 3Y14.62%
OM growth 5Y19.03%
PM growth 3Y-4.39%
PM growth 5Y-2.46%
GM growth 3Y0.92%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
DELL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DELL has been reduced compared to 1 year ago.
The number of shares outstanding for DELL has been reduced compared to 5 years ago.
Compared to 1 year ago, DELL has an improved debt to assets ratio.
2.2 Solvency
DELL has an Altman-Z score of 1.83. This is not the best score and indicates that DELL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, DELL is in line with its industry, outperforming 46.88% of the companies in the same industry.
The Debt to FCF ratio of DELL is 7.89, which is on the high side as it means it would take DELL, 7.89 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.89, DELL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.89 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.66
WACC9.97%
2.3 Liquidity
A Current Ratio of 0.85 indicates that DELL may have some problems paying its short term obligations.
The Current ratio of DELL (0.85) is worse than 81.25% of its industry peers.
A Quick Ratio of 0.70 indicates that DELL may have some problems paying its short term obligations.
The Quick ratio of DELL (0.70) is worse than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.06%, which is quite good.
The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
DELL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.08%.
The Revenue has been growing slightly by 2.42% on average over the past years.
EPS 1Y (TTM)12.06%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
3.2 Future
DELL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.15% yearly.
Based on estimates for the next years, DELL will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y19.63%
EPS Next 2Y16.45%
EPS Next 3Y14.75%
EPS Next 5Y12.15%
Revenue Next Year7.94%
Revenue Next 2Y7.03%
Revenue Next 3Y6.39%
Revenue Next 5Y4.31%
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 15.72 indicates a correct valuation of DELL.
Compared to the rest of the industry, the Price/Earnings ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 71.88% of the companies listed in the same industry.
DELL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
With a Price/Forward Earnings ratio of 11.60, the valuation of DELL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. DELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DELL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.53 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DELL may justify a higher PE ratio.
DELL's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)9.34
EPS Next 2Y16.45%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, DELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.99, DELL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, DELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of DELL decreases each year by -6.80%.
DELL has been paying a dividend for over 5 years, so it has already some track record.
The dividend of DELL decreased in the last 3 years.
Dividend Growth(5Y)-6.8%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
29.04% of the earnings are spent on dividend by DELL. This is a low number and sustainable payout ratio.
DP29.04%
EPS Next 2Y16.45%
EPS Next 3Y14.75%
NYSE:DELL (7/3/2025, 12:29:09 PM)
125.64
+2.16 (+1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners68.89%
Inst Owner Change-4.94%
Ins Owners11.21%
Ins Owner Change-21.95%
Market Cap85.87B
Analysts81.33
Price Target139.28 (10.86%)
Short Float %6.75%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP29.04%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.98%
Min EPS beat(2)-9.96%
Max EPS beat(2)4%
EPS beat(4)3
Avg EPS beat(4)1.21%
Min EPS beat(4)-9.96%
Max EPS beat(4)8.47%
EPS beat(8)6
Avg EPS beat(8)13.08%
EPS beat(12)10
Avg EPS beat(12)17.04%
EPS beat(16)13
Avg EPS beat(16)14.68%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-0.97%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)1.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)6
Avg Revenue beat(16)-1.95%
PT rev (1m)4.14%
PT rev (3m)-3.71%
EPS NQ rev (1m)13.28%
EPS NQ rev (3m)6.1%
EPS NY rev (1m)2.25%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)16.02%
Revenue NQ rev (3m)15.67%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 11.6 | ||
| P/S | 0.89 | ||
| P/FCF | 23.53 | ||
| P/OCF | 13.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)7.99
EY6.36%
EPS(NY)10.84
Fwd EY8.62%
FCF(TTM)5.34
FCFY4.25%
OCF(TTM)9.18
OCFY7.31%
SpS141.48
BVpS-4.42
TBVpS-39.81
PEG (NY)0.8
PEG (5Y)9.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | N/A | ||
| ROCE | 19.09% | ||
| ROIC | 16.53% | ||
| ROICexc | 20.95% | ||
| ROICexgc | 131.97% | ||
| OM | 7.19% | ||
| PM (TTM) | 4.75% | ||
| GM | 22.11% | ||
| FCFM | 3.77% |
ROA(3y)4.2%
ROA(5y)4.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.7%
ROIC(5y)12.68%
ROICexc(3y)19.22%
ROICexc(5y)15.74%
ROICexgc(3y)262.93%
ROICexgc(5y)N/A
ROCE(3y)18.13%
ROCE(5y)14.64%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y9.13%
ROICexc growth 5Y39.04%
OM growth 3Y14.62%
OM growth 5Y19.03%
PM growth 3Y-4.39%
PM growth 5Y-2.46%
GM growth 3Y0.92%
GM growth 5Y-1.79%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.89 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 84.02% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.24% | ||
| Profit Quality | 79.4% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.83 |
F-Score6
WACC9.97%
ROIC/WACC1.66
Cap/Depr(3y)87.84%
Cap/Depr(5y)72.71%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.8%
Profit Quality(3y)79.48%
Profit Quality(5y)132.07%
High Growth Momentum
Growth
EPS 1Y (TTM)12.06%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
EPS Next Y19.63%
EPS Next 2Y16.45%
EPS Next 3Y14.75%
EPS Next 5Y12.15%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year7.94%
Revenue Next 2Y7.03%
Revenue Next 3Y6.39%
Revenue Next 5Y4.31%
EBIT growth 1Y19.11%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year45.7%
EBIT Next 3Y19.04%
EBIT Next 5Y11.37%
FCF growth 1Y40.55%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y11.82%
OCF growth 3Y-24.02%
OCF growth 5Y-13.42%