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 4 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 is not valued too expensively and it also shows a decent 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.
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
With a decent Return On Assets value of 5.76%, DELL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 17.66%, 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 16.87%.
The last Return On Invested Capital (17.66%) for DELL is above the 3 year average (15.70%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 4.81%, DELL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
In the last couple of years the Profit Margin of DELL has declined.
With a Operating Margin value of 7.09%, DELL perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
DELL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.24%, DELL is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
DELL's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DELL is creating 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
An Altman-Z score of 1.89 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 1.89. This is comparable to the rest of the industry: DELL outperforms 53.13% of its industry peers.
The Debt to FCF ratio of DELL is 13.14, which is on the high side as it means it would take DELL, 13.14 years of fcf income to pay off all of its debts.
DELL has a Debt to FCF ratio of 13.14. This is comparable to the rest of the industry: DELL outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.14 | ||
| Altman-Z | 1.89 |
ROIC/WACC2.21
WACC7.98%
2.3 Liquidity
DELL has a Current 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 Current ratio of 0.78. This is amonst the worse of the industry: DELL underperforms 81.25% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.63 |
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%.
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 13.20% on average over the next years. This is quite good.
DELL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y16.99%
EPS Next 2Y14.31%
EPS Next 3Y13.05%
EPS Next 5Y13.2%
Revenue Next Year6.55%
Revenue Next 2Y6.84%
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 14.27, the valuation of DELL can be described as correct.
DELL's Price/Earnings ratio is a bit cheaper when compared to the industry. DELL is cheaper than 71.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of DELL to the average of the S&P500 Index (26.60), we can say DELL is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.92, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.43. DELL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 10.92 |
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 71.88% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DELL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.58 | ||
| EV/EBITDA | 10.17 |
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 13.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)8.48
EPS Next 2Y14.31%
EPS Next 3Y13.05%
5. Dividend
5.1 Amount
DELL has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.74, DELL pays a better dividend. On top of this DELL pays more dividend than 81.25% of the companies listed in the same industry.
DELL's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 2Y14.31%
EPS Next 3Y13.05%
NYSE:DELL (5/21/2025, 10:32:09 AM)
114.04
-0.19 (-0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners72.41%
Inst Owner Change-5.15%
Ins Owners10.55%
Ins Owner Change-11.94%
Market Cap79.58B
Analysts81.33
Price Target133.75 (17.28%)
Short Float %6.98%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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)0.44%
EPS NQ rev (3m)-5.75%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.83 | ||
| P/FCF | 42.58 | ||
| P/OCF | 17.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.17 |
EPS(TTM)7.99
EY7.01%
EPS(NY)10.44
Fwd EY9.15%
FCF(TTM)2.68
FCFY2.35%
OCF(TTM)6.48
OCFY5.68%
SpS136.95
BVpS-2.12
TBVpS-36.67
PEG (NY)0.84
PEG (5Y)8.48
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 | 1.89 |
F-Score6
WACC7.98%
ROIC/WACC2.21
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 Y16.99%
EPS Next 2Y14.31%
EPS Next 3Y13.05%
EPS Next 5Y13.2%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y-1.89%
Revenue growth 5Y2.42%
Sales Q2Q%0%
Revenue Next Year6.55%
Revenue Next 2Y6.84%
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%