DXC TECHNOLOGY CO (DXC) Fundamental Analysis & Valuation
NYSE:DXC • US23355L1061
Current stock price
13.12 USD
-0.19 (-1.43%)
At close:
13.22 USD
+0.1 (+0.76%)
After Hours:
This DXC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DXC Profitability Analysis
1.1 Basic Checks
- DXC had positive earnings in the past year.
- In the past year DXC had a positive cash flow from operations.
- In multiple years DXC reported negative net income over the last 5 years.
- DXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.21%, DXC is in the better half of the industry, outperforming 60.23% of the companies in the same industry.
- With a decent Return On Equity value of 13.45%, DXC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.89%, DXC is in line with its industry, outperforming 56.82% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DXC is significantly below the industry average of 10.44%.
- The last Return On Invested Capital (2.89%) for DXC is above the 3 year average (2.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.45% | ||
| ROIC | 2.89% |
ROA(3y)0.01%
ROA(5y)0.58%
ROE(3y)-0.32%
ROE(5y)2.05%
ROIC(3y)2.61%
ROIC(5y)N/A
1.3 Margins
- DXC has a Profit Margin (3.34%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DXC has declined.
- The Operating Margin of DXC (3.60%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DXC has declined.
- With a Gross Margin value of 24.25%, DXC is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of DXC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.6% | ||
| PM (TTM) | 3.34% | ||
| GM | 24.25% |
OM growth 3Y8.71%
OM growth 5Y-14.76%
PM growth 3Y-11.86%
PM growth 5YN/A
GM growth 3Y3.04%
GM growth 5Y0.17%
2. DXC Health Analysis
2.1 Basic Checks
- DXC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, DXC has more shares outstanding
- The number of shares outstanding for DXC has been reduced compared to 5 years ago.
- The debt/assets ratio for DXC has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that DXC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.02, DXC is doing worse than 68.18% of the companies in the same industry.
- The Debt to FCF ratio of DXC is 5.08, which is a neutral value as it means it would take DXC, 5.08 years of fcf income to pay off all of its debts.
- DXC has a Debt to FCF ratio (5.08) which is in line with its industry peers.
- DXC has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- DXC has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: DXC underperforms 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.35
WACC8.23%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that DXC should not have too much problems paying its short term obligations.
- DXC has a Current ratio of 1.35. This is in the lower half of the industry: DXC underperforms 62.50% of its industry peers.
- DXC has a Quick Ratio of 1.35. This is a normal value and indicates that DXC is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.35, DXC is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. DXC Growth Analysis
3.1 Past
- DXC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.74%.
- DXC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.24% yearly.
- DXC shows a decrease in Revenue. In the last year, the revenue decreased by -3.09%.
- The Revenue has been decreasing by -8.05% on average over the past years.
EPS 1Y (TTM)-6.74%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-3.09%
Revenue growth 3Y-7.5%
Revenue growth 5Y-8.05%
Sales Q2Q%-0.96%
3.2 Future
- DXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.60% yearly.
- Based on estimates for the next years, DXC will show a decrease in Revenue. The Revenue will decrease by -1.70% on average per year.
EPS Next Y-6.43%
EPS Next 2Y-1.82%
EPS Next 3Y1.6%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y-1.9%
Revenue Next 3Y-1.7%
Revenue Next 5YN/A
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. DXC Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 3.95 indicates a rather cheap valuation of DXC.
- DXC's Price/Earnings ratio is rather cheap when compared to the industry. DXC is cheaper than 94.32% of the companies in the same industry.
- DXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.71.
- DXC is valuated cheaply with a Price/Forward Earnings ratio of 3.97.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 95.45% of the companies listed in the same industry.
- DXC is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 3.97 |
4.2 Price Multiples
- 97.73% of the companies in the same industry are more expensive than DXC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 98.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.12 | ||
| EV/EBITDA | 2.24 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.82%
EPS Next 3Y1.6%
5. DXC Dividend Analysis
5.1 Amount
- DXC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DXC Fundamentals: All Metrics, Ratios and Statistics
13.12
-0.19 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)05-07 2026-05-07/amc
Inst Owners98.16%
Inst Owner Change0.25%
Ins Owners1.13%
Ins Owner Change0.12%
Market Cap2.23B
Revenue(TTM)12.68B
Net Income(TTM)423.00M
Analysts48.89
Price Target15.09 (15.02%)
Short Float %12.83%
Short Ratio7.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.18%
Min EPS beat(2)14.98%
Max EPS beat(2)19.38%
EPS beat(4)4
Avg EPS beat(4)12.64%
Min EPS beat(4)7.63%
Max EPS beat(4)19.38%
EPS beat(8)8
Avg EPS beat(8)17.43%
EPS beat(12)10
Avg EPS beat(12)10.68%
EPS beat(16)12
Avg EPS beat(16)7.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)5
Avg Revenue beat(16)-0.85%
PT rev (1m)-0.84%
PT rev (3m)-6.8%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-12.33%
EPS NY rev (1m)0%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 3.97 | ||
| P/S | 0.18 | ||
| P/FCF | 3.12 | ||
| P/OCF | 1.68 | ||
| P/B | 0.71 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 2.24 |
EPS(TTM)3.32
EY25.3%
EPS(NY)3.31
Fwd EY25.2%
FCF(TTM)4.21
FCFY32.06%
OCF(TTM)7.8
OCFY59.45%
SpS74.71
BVpS18.53
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number37.2009 (183.54%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.45% | ||
| ROCE | 4.92% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.95% | ||
| OM | 3.6% | ||
| PM (TTM) | 3.34% | ||
| GM | 24.25% | ||
| FCFM | 5.63% |
ROA(3y)0.01%
ROA(5y)0.58%
ROE(3y)-0.32%
ROE(5y)2.05%
ROIC(3y)2.61%
ROIC(5y)N/A
ROICexc(3y)3.12%
ROICexc(5y)N/A
ROICexgc(3y)4.53%
ROICexgc(5y)N/A
ROCE(3y)4.4%
ROCE(5y)N/A
ROICexgc growth 3Y8.66%
ROICexgc growth 5Y-17.32%
ROICexc growth 3Y13.16%
ROICexc growth 5Y-10.47%
OM growth 3Y8.71%
OM growth 5Y-14.76%
PM growth 3Y-11.86%
PM growth 5YN/A
GM growth 3Y3.04%
GM growth 5Y0.17%
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 50.12% | ||
| Cap/Sales | 4.81% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 79.14% | ||
| Profit Quality | 168.79% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.02 |
F-Score8
WACC8.23%
ROIC/WACC0.35
Cap/Depr(3y)46.69%
Cap/Depr(5y)44.53%
Cap/Sales(3y)4.88%
Cap/Sales(5y)4.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.74%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%4.35%
EPS Next Y-6.43%
EPS Next 2Y-1.82%
EPS Next 3Y1.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.09%
Revenue growth 3Y-7.5%
Revenue growth 5Y-8.05%
Sales Q2Q%-0.96%
Revenue Next Year-1.36%
Revenue Next 2Y-1.9%
Revenue Next 3Y-1.7%
Revenue Next 5YN/A
EBIT growth 1Y-16.94%
EBIT growth 3Y0.55%
EBIT growth 5Y-21.62%
EBIT Next Year77.66%
EBIT Next 3Y19.8%
EBIT Next 5YN/A
FCF growth 1Y-48.03%
FCF growth 3Y-4.75%
FCF growth 5Y-14.28%
OCF growth 1Y-33.8%
OCF growth 3Y-3.44%
OCF growth 5Y-9.87%
DXC TECHNOLOGY CO / DXC Fundamental Analysis FAQ
What is the ChartMill fundamental rating of DXC TECHNOLOGY CO (DXC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DXC.
What is the valuation status for DXC stock?
ChartMill assigns a valuation rating of 7 / 10 to DXC TECHNOLOGY CO (DXC). This can be considered as Undervalued.
How profitable is DXC TECHNOLOGY CO (DXC) stock?
DXC TECHNOLOGY CO (DXC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of DXC TECHNOLOGY CO (DXC) stock?
The Price/Earnings (PE) ratio for DXC TECHNOLOGY CO (DXC) is 3.95 and the Price/Book (PB) ratio is 0.71.
Can you provide the financial health for DXC stock?
The financial health rating of DXC TECHNOLOGY CO (DXC) is 3 / 10.