DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
USA - NYSE:DXC - US23355L1061 - Common Stock
12.825 USD
-0.09 (-0.66%)
Taking everything into account, DXC scores 3 out of 10 in our fundamental rating. DXC was compared to 85 industry peers in the IT Services industry. DXC has a medium profitability rating, but doesn't score so well on its financial health evaluation. DXC is valued quite cheap, but it does not seem to be growing.
1. Profitability
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 2.75%, DXC is in line with its industry, outperforming 57.65% of the companies in the same industry.
DXC has a better Return On Equity (12.15%) than 71.76% of its industry peers.
DXC's Return On Invested Capital of 2.72% is in line compared to the rest of the industry. DXC outperforms 51.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DXC is significantly below the industry average of 29.74%.
The 3 year average ROIC (2.61%) for DXC is below the current ROIC(2.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 12.15% | ||
| ROIC | 2.72% |
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
Looking at the Profit Margin, with a value of 2.93%, DXC is in line with its industry, outperforming 54.12% of the companies in the same industry.
In the last couple of years the Profit Margin of DXC has declined.
Looking at the Operating Margin, with a value of 3.51%, DXC is in line with its industry, outperforming 48.24% of the companies in the same industry.
DXC's Operating Margin has declined in the last couple of years.
DXC's Gross Margin of 24.59% is on the low side compared to the rest of the industry. DXC is outperformed by 71.76% of its industry peers.
DXC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.51% | ||
| PM (TTM) | 2.93% | ||
| GM | 24.59% |
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. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DXC is destroying value.
The number of shares outstanding for DXC has been increased compared to 1 year ago.
The number of shares outstanding for DXC has been reduced compared to 5 years ago.
DXC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that DXC is in the distress zone and has some risk of bankruptcy.
DXC has a Altman-Z score of 0.89. This is in the lower half of the industry: DXC underperforms 69.41% of its industry peers.
DXC has a debt to FCF ratio of 4.26. This is a neutral value as DXC would need 4.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.26, DXC is in line with its industry, outperforming 55.29% of the companies in the same industry.
DXC has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
DXC has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: DXC underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.37
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.09 indicates that DXC should not have too much problems paying its short term obligations.
DXC has a worse Current ratio (1.09) than 71.76% of its industry peers.
DXC has a Quick Ratio of 1.09. This is a normal value and indicates that DXC is financially healthy and should not expect problems in meeting its short term obligations.
DXC has a worse Quick ratio (1.09) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
DXC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.55%.
Measured over the past years, DXC shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.24% on average per year.
The Revenue has decreased by -4.13% in the past year.
Measured over the past years, DXC shows a decrease in Revenue. The Revenue has been decreasing by -8.05% on average per year.
EPS 1Y (TTM)-6.55%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%-9.68%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y-7.5%
Revenue growth 5Y-8.05%
Sales Q2Q%-2.47%
3.2 Future
The Earnings Per Share is expected to grow by 1.81% on average over the next years.
DXC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.44% yearly.
EPS Next Y-7.9%
EPS Next 2Y-3.78%
EPS Next 3Y1.81%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y-1.85%
Revenue Next 3Y-1.44%
Revenue Next 5YN/A
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
DXC is valuated cheaply with a Price/Earnings ratio of 3.91.
Compared to the rest of the industry, the Price/Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 95.29% of the companies listed in the same industry.
DXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 4.04 indicates a rather cheap valuation of DXC.
96.47% of the companies in the same industry are more expensive than DXC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 4.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXC is valued cheaper than 98.82% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than DXC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.46 | ||
| EV/EBITDA | 1.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.78%
EPS Next 3Y1.81%
5. Dividend
5.1 Amount
DXC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:DXC (11/17/2025, 10:18:59 AM)
12.825
-0.09 (-0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner Change0.39%
Ins Owners1.17%
Ins Owner Change-1.48%
Market Cap2.30B
Revenue(TTM)12.71B
Net Income(TTM)373.00M
Analysts50
Price Target16.53 (28.89%)
Short Float %6.22%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)13.99%
Min EPS beat(2)8.59%
Max EPS beat(2)19.38%
EPS beat(4)4
Avg EPS beat(4)13.44%
Min EPS beat(4)7.63%
Max EPS beat(4)19.38%
EPS beat(8)8
Avg EPS beat(8)17.01%
EPS beat(12)10
Avg EPS beat(12)10.51%
EPS beat(16)11
Avg EPS beat(16)6.35%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)1.19%
Revenue beat(8)5
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.62%
Revenue beat(16)5
Avg Revenue beat(16)-0.89%
PT rev (1m)-0.68%
PT rev (3m)-3.66%
EPS NQ rev (1m)-4.74%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)1.04%
EPS NY rev (3m)4.22%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 4.04 | ||
| P/S | 0.18 | ||
| P/FCF | 2.46 | ||
| P/OCF | 1.47 | ||
| P/B | 0.75 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 1.73 |
EPS(TTM)3.28
EY25.58%
EPS(NY)3.18
Fwd EY24.76%
FCF(TTM)5.22
FCFY40.69%
OCF(TTM)8.73
OCFY68.08%
SpS71.03
BVpS17.16
TBVpS3.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number35.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 12.15% | ||
| ROCE | 5.2% | ||
| ROIC | 2.72% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 4.75% | ||
| OM | 3.51% | ||
| PM (TTM) | 2.93% | ||
| GM | 24.59% | ||
| FCFM | 7.35% |
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-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 50.08% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | 91.83% | ||
| Profit Quality | 250.4% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 0.89 |
F-Score7
WACC7.42%
ROIC/WACC0.37
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)-6.55%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%-9.68%
EPS Next Y-7.9%
EPS Next 2Y-3.78%
EPS Next 3Y1.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y-7.5%
Revenue growth 5Y-8.05%
Sales Q2Q%-2.47%
Revenue Next Year-1.13%
Revenue Next 2Y-1.85%
Revenue Next 3Y-1.44%
Revenue Next 5YN/A
EBIT growth 1Y-13.06%
EBIT growth 3Y0.55%
EBIT growth 5Y-21.62%
EBIT Next Year80.51%
EBIT Next 3Y20.6%
EBIT Next 5YN/A
FCF growth 1Y24.87%
FCF growth 3Y-4.75%
FCF growth 5Y-14.28%
OCF growth 1Y10.46%
OCF growth 3Y-3.44%
OCF growth 5Y-9.87%
DXC TECHNOLOGY CO / DXC FAQ
What is the ChartMill fundamental rating of DXC TECHNOLOGY CO (DXC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DXC.
Can you provide the valuation status for DXC TECHNOLOGY CO?
ChartMill assigns a valuation rating of 7 / 10 to DXC TECHNOLOGY CO (DXC). This can be considered as Undervalued.
What is the profitability of DXC stock?
DXC TECHNOLOGY CO (DXC) has a profitability rating of 4 / 10.
What is the valuation of DXC TECHNOLOGY CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DXC TECHNOLOGY CO (DXC) is 3.91 and the Price/Book (PB) ratio is 0.75.
How financially healthy is DXC TECHNOLOGY CO?
The financial health rating of DXC TECHNOLOGY CO (DXC) is 3 / 10.