DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
USA - NYSE:DELL - US24703L2025 - Common Stock
131.94 USD
-0.17 (-0.13%)
131.98 USD
+0.04 (+0.03%)
Taking everything into account, DELL scores 5 out of 10 in our fundamental rating. DELL was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. DELL has an average financial health and profitability rating. DELL scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DELL was profitable.
DELL had a positive operating cash flow in the past year.
In the past 5 years DELL has always been profitable.
Each year in the past 5 years DELL had a positive operating cash flow.
1.2 Ratios
DELL has a Return On Assets of 5.51%. This is in the better half of the industry: DELL outperforms 75.76% of its industry peers.
DELL has a better Return On Invested Capital (18.21%) than 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DELL is in line with the industry average of 14.98%.
The last Return On Invested Capital (18.21%) for DELL is above the 3 year average (15.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | N/A | ||
| ROIC | 18.21% |
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 4.84%, DELL is doing good in the industry, outperforming 78.79% of the companies in the same industry.
DELL's Profit Margin has declined in the last couple of years.
DELL has a better Operating Margin (7.11%) than 69.70% of its industry peers.
DELL's Operating Margin has improved in the last couple of years.
DELL's Gross Margin of 21.21% is on the low side compared to the rest of the industry. DELL is outperformed by 66.67% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 4.84% | ||
| GM | 21.21% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DELL is creating value.
Compared to 1 year ago, DELL has less shares outstanding
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
An Altman-Z score of 1.86 indicates that DELL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.86, DELL is in line with its industry, outperforming 45.45% of the companies in the same industry.
DELL has a debt to FCF ratio of 5.90. This is a neutral value as DELL would need 5.90 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.90, DELL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.86 |
ROIC/WACC2.33
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.83 indicates that DELL may have some problems paying its short term obligations.
DELL has a Current ratio of 0.83. This is amonst the worse of the industry: DELL underperforms 81.82% of its industry peers.
A Quick Ratio of 0.70 indicates that DELL may have some problems paying its short term obligations.
DELL's Quick ratio of 0.70 is on the low side compared to the rest of the industry. DELL is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.06% over the past year.
DELL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.68% yearly.
Looking at the last year, DELL shows a quite strong growth in Revenue. The Revenue has grown by 8.08% in the last year.
DELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
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
The Earnings Per Share is expected to grow by 13.84% on average over the next years. This is quite good.
Based on estimates for the next years, DELL will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y19.73%
EPS Next 2Y17.56%
EPS Next 3Y16.1%
EPS Next 5Y13.84%
Revenue Next Year11.72%
Revenue Next 2Y9.64%
Revenue Next 3Y8.25%
Revenue Next 5Y5.35%
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
With a Price/Earnings ratio of 16.51, DELL is valued correctly.
Based on the Price/Earnings ratio, DELL is valued cheaper than 84.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of DELL to the average of the S&P500 Index (27.38), we can say DELL is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.95, which indicates a very decent valuation of DELL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 78.79% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DELL to the average of the S&P500 Index (22.86), we can say DELL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than DELL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.25 | ||
| EV/EBITDA | 10.58 |
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.
A more expensive valuation may be justified as DELL's earnings are expected to grow with 16.10% in the coming years.
PEG (NY)0.84
PEG (5Y)9.81
EPS Next 2Y17.56%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 1.85, DELL pays a better dividend. On top of this DELL pays more dividend than 87.88% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, DELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
DELL pays out 28.18% of its income as dividend. This is a sustainable payout ratio.
DP28.18%
EPS Next 2Y17.56%
EPS Next 3Y16.1%
131.94
-0.17 (-0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners68.78%
Inst Owner Change0.06%
Ins Owners8.36%
Ins Owner Change-26.72%
Market Cap88.71B
Analysts80.67
Price Target149.66 (13.43%)
Short Float %4.2%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP28.18%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.57%
Min EPS beat(2)-9.96%
Max EPS beat(2)-1.18%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-9.96%
Max EPS beat(4)4%
EPS beat(8)5
Avg EPS beat(8)6.66%
EPS beat(12)9
Avg EPS beat(12)16.89%
EPS beat(16)12
Avg EPS beat(16)14.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.5%
PT rev (1m)6.23%
PT rev (3m)9%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)4.72%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 11.95 | ||
| P/S | 0.87 | ||
| P/FCF | 18.25 | ||
| P/OCF | 11.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)7.99
EY6.06%
EPS(NY)11.04
Fwd EY8.37%
FCF(TTM)7.23
FCFY5.48%
OCF(TTM)11.12
OCFY8.43%
SpS150.89
BVpS-4.11
TBVpS-39.93
PEG (NY)0.84
PEG (5Y)9.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | N/A | ||
| ROCE | 21.03% | ||
| ROIC | 18.21% | ||
| ROICexc | 23.87% | ||
| ROICexgc | 299.64% | ||
| OM | 7.11% | ||
| PM (TTM) | 4.84% | ||
| GM | 21.21% | ||
| FCFM | 4.79% |
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-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 83.8% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.32% | ||
| Profit Quality | 98.88% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.86 |
F-Score7
WACC7.82%
ROIC/WACC2.33
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 Y19.73%
EPS Next 2Y17.56%
EPS Next 3Y16.1%
EPS Next 5Y13.84%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year11.72%
Revenue Next 2Y9.64%
Revenue Next 3Y8.25%
Revenue Next 5Y5.35%
EBIT growth 1Y24.54%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year46.57%
EBIT Next 3Y20.1%
EBIT Next 5Y13.12%
FCF growth 1Y-7.78%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y-7.7%
OCF growth 3Y-24.02%
OCF growth 5Y-13.42%