DELL TECHNOLOGIES -C (DELL) Stock Fundamental Analysis
NYSE:DELL - New York Stock Exchange, Inc. - US24703L2025 - Common Stock - Currency: USD
Overall DELL gets a fundamental rating of 5 out of 10. We evaluated DELL against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While DELL is still in line with the averages on profitability rating, there are concerns on its financial health. DELL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DELL had positive earnings in the past year.
In the past year DELL had a positive cash flow from operations.
DELL had positive earnings in each of the past 5 years.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DELL has a better Return On Assets (5.76%) than 78.13% of its industry peers.
The Return On Invested Capital of DELL (17.66%) is better than 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DELL is in line with the industry average of 16.28%.
The 3 year average ROIC (15.70%) for DELL is below the current ROIC(17.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | N/A | ||
| ROIC | 17.66% |
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
DELL's Profit Margin of 4.81% is fine compared to the rest of the industry. DELL outperforms 68.75% of its industry peers.
DELL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.09%, DELL is in line with its industry, outperforming 59.38% of the companies in the same industry.
DELL's Operating Margin has improved in the last couple of years.
DELL's Gross Margin of 22.24% is on the low side compared to the rest of the industry. DELL is outperformed by 62.50% of its industry peers.
In the last couple of years the Gross Margin of DELL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.09% | ||
| PM (TTM) | 4.81% | ||
| GM | 22.24% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DELL is creating value.
DELL has less shares outstanding than it did 1 year ago.
DELL has less shares outstanding than it did 5 years ago.
DELL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.84 indicates that DELL is not a great score, but indicates only limited risk for bankruptcy at the moment.
DELL has a Altman-Z score of 1.84. This is comparable to the rest of the industry: DELL outperforms 50.00% of its industry peers.
DELL has a debt to FCF ratio of 13.14. This is a negative value and a sign of low solvency as DELL would need 13.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.14, DELL is in line with its industry, outperforming 53.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.14 | ||
| Altman-Z | 1.84 |
ROIC/WACC2.26
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.78 indicates that DELL may have some problems paying its short term obligations.
DELL has a worse Current ratio (0.78) than 84.38% of its industry peers.
DELL has a Quick Ratio of 0.78. This is a bad value and indicates that DELL is not financially healthy enough and could expect problems in meeting its short term obligations.
DELL has a Quick ratio of 0.63. This is in the lower half of the industry: DELL underperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.06% over the past year.
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%.
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
Based on estimates for the next years, DELL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.20% on average per year.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y17.78%
EPS Next 2Y14.36%
EPS Next 3Y12.79%
EPS Next 5Y13.2%
Revenue Next Year6.54%
Revenue Next 2Y6.87%
Revenue Next 3Y5.7%
Revenue Next 5Y4.62%
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
Based on the Price/Earnings ratio of 13.46, the valuation of DELL can be described as correct.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DELL to the average of the S&P500 Index (24.83), we can say DELL is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.30, which indicates a very decent valuation of DELL.
Based on the Price/Forward Earnings ratio, DELL is valued a bit cheaper than 65.63% of the companies in the same industry.
DELL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DELL indicates a somewhat cheap valuation: DELL is cheaper than 68.75% of the companies listed in the same industry.
DELL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.17 | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
DELL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DELL's earnings are expected to grow with 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)8
EPS Next 2Y14.36%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 2.85, DELL pays a bit more dividend than its industry peers.
DELL's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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.
DELL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.8%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DELL pays out 27.77% of its income as dividend. This is a sustainable payout ratio.
DP27.77%
EPS Next 2Y14.36%
EPS Next 3Y12.79%
NYSE:DELL (5/13/2025, 12:37:10 PM)
107.585
+4.16 (+4.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners72.41%
Inst Owner Change0.88%
Ins Owners10.55%
Ins Owner Change-11.92%
Market Cap75.08B
Analysts81.33
Price Target133.75 (24.32%)
Short Float %6.98%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend1.82
Dividend Growth(5Y)-6.8%
DP27.77%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.17%
Min EPS beat(2)2.34%
Max EPS beat(2)4%
EPS beat(4)3
Avg EPS beat(4)3.47%
Min EPS beat(4)-0.95%
Max EPS beat(4)8.47%
EPS beat(8)7
Avg EPS beat(8)20.57%
EPS beat(12)11
Avg EPS beat(12)20.33%
EPS beat(16)14
Avg EPS beat(16)17.14%
Revenue beat(2)0
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-3.17%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)1.63%
Revenue beat(8)4
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)6
Avg Revenue beat(16)-2.22%
PT rev (1m)-5.55%
PT rev (3m)-14.02%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)-1.38%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.79 | ||
| P/FCF | 40.17 | ||
| P/OCF | 16.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.41 |
EPS(TTM)7.99
EY7.43%
EPS(NY)10.45
Fwd EY9.71%
FCF(TTM)2.68
FCFY2.49%
OCF(TTM)6.48
OCFY6.02%
SpS136.95
BVpS-2.12
TBVpS-36.67
PEG (NY)0.76
PEG (5Y)8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | N/A | ||
| ROCE | 20.4% | ||
| ROIC | 17.66% | ||
| ROICexc | 19.83% | ||
| ROICexgc | 107.08% | ||
| OM | 7.09% | ||
| PM (TTM) | 4.81% | ||
| GM | 22.24% | ||
| FCFM | 1.96% |
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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.14 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 84.92% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 5.2 | ||
| Cash Conversion | 45.68% | ||
| Profit Quality | 40.7% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.84 |
F-Score6
WACC7.83%
ROIC/WACC2.26
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)132.08%
High Growth Momentum
Growth
EPS 1Y (TTM)12.06%
EPS 3Y-1.89%
EPS 5Y1.68%
EPS Q2Q%0%
EPS Next Y17.78%
EPS Next 2Y14.36%
EPS Next 3Y12.79%
EPS Next 5Y13.2%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year6.54%
Revenue Next 2Y6.87%
Revenue Next 3Y5.7%
Revenue Next 5Y4.62%
EBIT growth 1Y25.28%
EBIT growth 3Y12.46%
EBIT growth 5Y21.91%
EBIT Next Year46.23%
EBIT Next 3Y18.71%
EBIT Next 5Y12.91%
FCF growth 1Y-68.43%
FCF growth 3Y-37.1%
FCF growth 5Y-22.54%
OCF growth 1Y-47.89%
OCF growth 3Y-24.02%
OCF growth 5Y-13.42%