DELL TECHNOLOGIES -C (DELL)
US24703L2025 - Common Stock
Overall DELL gets a fundamental rating of 4 out of 10. We evaluated DELL against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of DELL while its profitability can be described as average. DELL has a valuation in line with the averages, but it does not seem to be growing.
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.
DELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DELL has a better Return On Assets (3.91%) than 71.88% of its industry peers.
DELL has a Return On Invested Capital of 12.23%. This is amongst the best in the industry. DELL outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DELL is below the industry average of 14.47%.
The 3 year average ROIC (11.76%) for DELL is below the current ROIC(12.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | N/A | ||
| ROIC | 12.23% |
ROA(3y)4.21%
ROA(5y)3.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.76%
ROIC(5y)8.56%
1.3 Margins
DELL has a better Profit Margin (3.63%) than 62.50% of its industry peers.
DELL's Profit Margin has been stable in the last couple of years.
The Operating Margin of DELL (5.91%) is better than 65.63% of its industry peers.
In the last couple of years the Operating Margin of DELL has grown nicely.
DELL has a worse Gross Margin (23.60%) than 62.50% of its industry peers.
DELL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.91% | ||
| PM (TTM) | 3.63% | ||
| GM | 23.6% |
OM growth 3Y8.53%
OM growth 5Y93.47%
PM growth 3Y-1.06%
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y-3.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DELL is still 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.
The debt/assets ratio for DELL has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of DELL is 4.39, which is a neutral value as it means it would take DELL, 4.39 years of fcf income to pay off all of its debts.
DELL's Debt to FCF ratio of 4.39 is fine compared to the rest of the industry. DELL outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | N/A |
ROIC/WACC1.31
WACC9.36%
2.3 Liquidity
DELL has a Current Ratio of 0.74. 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's Current ratio of 0.74 is on the low side compared to the rest of the industry. DELL is outperformed by 93.75% of its industry peers.
DELL has a Quick Ratio of 0.74. This is a bad value and indicates that DELL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.67, DELL is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
DELL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.43%.
The Earnings Per Share has been growing slightly by 1.22% on average over the past years.
DELL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.56%.
Measured over the past years, DELL shows a decrease in Revenue. The Revenue has been decreasing by -0.49% on average per year.
EPS 1Y (TTM)-6.43%
EPS 3Y-3.72%
EPS 5Y1.22%
EPS growth Q2Q22.22%
Revenue 1Y (TTM)-13.56%
Revenue growth 3Y0.67%
Revenue growth 5Y-0.49%
Revenue growth Q2Q-10.87%
3.2 Future
The Earnings Per Share is expected to grow by 6.05% on average over the next years.
Based on estimates for the next years, DELL will show a small growth in Revenue. The Revenue will grow by 2.48% on average per year.
EPS Next Y7.93%
EPS Next 2Y10.44%
EPS Next 3Y11.03%
EPS Next 5Y6.05%
Revenue Next Year6.03%
Revenue Next 2Y6.09%
Revenue Next 3Y5.63%
Revenue Next 5Y2.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 17.54, which indicates a rather expensive current valuation of DELL.
Based on the Price/Earnings ratio, DELL is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
DELL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.92.
A Price/Forward Earnings ratio of 16.25 indicates a correct valuation of DELL.
65.63% of the companies in the same industry are more expensive than DELL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.49. DELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 16.25 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DELL is valued a bit cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DELL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)14.36
EPS Next 2Y10.44%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.43%.
DELL's Dividend Yield is rather good when compared to the industry average which is at 2.77. DELL pays more dividend than 81.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DELL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
DELL has been paying a dividend for over 5 years, so it has already some track record.
The dividend of DELL decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DELL pays out 33.39% of its income as dividend. This is a sustainable payout ratio.
DP33.39%
EPS Next 2Y10.44%
EPS Next 3Y11.03%
DELL TECHNOLOGIES -C
NYSE:DELL (4/26/2024, 7:04:00 PM)
After market: 125.28 +0.22 (+0.18%)125.06
+0.15 (+0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap89.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 16.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.21
PEG (5Y)14.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.91% | ||
| PM (TTM) | 3.63% | ||
| GM | 23.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.43%
EPS 3Y-3.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.56%
Revenue growth 3Y0.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y