DXC TECHNOLOGY CO (DXC)
US23355L1061 - Common Stock
Taking everything into account, DXC scores 3 out of 10 in our fundamental rating. DXC was compared to 86 industry peers in the IT Services industry. DXC may be in some trouble as it scores bad on both profitability and health. 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.
DXC had a positive operating cash flow in the past year.
In multiple years DXC reported negative net income over the last 5 years.
In the past 5 years DXC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.12%, DXC is in line with its industry, outperforming 45.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of -14.97%, DXC is in line with its industry, outperforming 44.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -14.97% | ||
| ROIC | N/A |
ROA(3y)-0.23%
ROA(5y)-3.42%
ROE(3y)-1.68%
ROE(5y)-21.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 22.65%, DXC is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of DXC has declined.
The Profit Margin and Operating Margin are not available for DXC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 22.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.61%
GM growth 5Y-2.4%
2. Health
2.1 Basic Checks
DXC does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, DXC has less shares outstanding
Compared to 5 years ago, DXC has less shares outstanding
DXC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.63, we must say that DXC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DXC (0.63) is worse than 64.29% of its industry peers.
DXC has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as DXC would need 3.30 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.30, DXC is doing good in the industry, outperforming 60.71% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that DXC has dependencies on debt financing.
DXC has a worse Debt to Equity ratio (1.37) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 0.63 |
ROIC/WACCN/A
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DXC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, DXC is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
A Quick Ratio of 1.11 indicates that DXC should not have too much problems paying its short term obligations.
The Quick ratio of DXC (1.11) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for DXC have decreased by -2.13% in the last year.
DXC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.28% yearly.
The Revenue has decreased by -6.57% in the past year.
The Revenue has been decreasing by -7.86% on average over the past years.
EPS 1Y (TTM)-2.13%
EPS 3Y-14.59%
EPS 5Y-15.28%
EPS growth Q2Q-8.42%
Revenue 1Y (TTM)-6.57%
Revenue growth 3Y-9.67%
Revenue growth 5Y-7.86%
Revenue growth Q2Q-4.68%
3.2 Future
Based on estimates for the next years, DXC will show a small growth in Earnings Per Share. The EPS will grow by 5.39% on average per year.
DXC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.41% yearly.
EPS Next Y-12.12%
EPS Next 2Y1.05%
EPS Next 3Y5.39%
EPS Next 5YN/A
Revenue Next Year-5.63%
Revenue Next 2Y-4.49%
Revenue Next 3Y-3.41%
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
Based on the Price/Earnings ratio of 6.53, the valuation of DXC can be described as very cheap.
96.43% of the companies in the same industry are more expensive than DXC, based on the Price/Earnings ratio.
DXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
The Price/Forward Earnings ratio is 5.93, which indicates a rather cheap valuation of DXC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DXC indicates a rather cheap valuation: DXC is cheaper than 97.62% of the companies listed in the same industry.
DXC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.53 | ||
| Fwd PE | 5.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DXC is valued a bit cheaper than 72.62% of the companies in the same industry.
97.62% 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 | 2.8 | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.05%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
No dividends for DXC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DXC TECHNOLOGY CO
NYSE:DXC (4/24/2024, 7:04:00 PM)
After market: 21.03 0 (0%)21.03
-0.13 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 6.53 | ||
| Fwd PE | 5.93 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -14.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 22.65% | ||
| 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| 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)-2.13%
EPS 3Y-14.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.57%
Revenue growth 3Y-9.67%
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