DXC TECHNOLOGY CO (DXC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DXC - US23355L1061 - Common Stock
14.91 USD
-0.26 (-1.71%)
15.32 USD
+0.41 (+2.75%)
DXC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. There are concerns on the financial health of DXC while its profitability can be described as average. DXC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year DXC was profitable.
- In the past year DXC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: DXC reported negative net income in multiple years.
- DXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DXC's Return On Assets of 2.75% is in line compared to the rest of the industry. DXC outperforms 56.82% of its industry peers.
- With a decent Return On Equity value of 12.15%, DXC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- The Return On Invested Capital of DXC (2.72%) is comparable to the rest of the industry.
- DXC had an Average Return On Invested Capital over the past 3 years of 2.61%. This is significantly below the industry average of 28.99%.
- 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
- DXC's Profit Margin of 2.93% is in line compared to the rest of the industry. DXC outperforms 55.68% of its industry peers.
- In the last couple of years the Profit Margin of DXC has declined.
- DXC has a Operating Margin of 3.51%. This is comparable to the rest of the industry: DXC outperforms 51.14% of its industry peers.
- DXC's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 24.59%, DXC is doing worse than 70.45% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DXC is destroying value.
- The number of shares outstanding for DXC has been increased compared to 1 year ago.
- DXC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DXC has an improved debt to assets ratio.
2.2 Solvency
- DXC has an Altman-Z score of 0.90. This is a bad value and indicates that DXC is not financially healthy and even has some risk of bankruptcy.
- DXC has a Altman-Z score of 0.90. This is in the lower half of the industry: DXC underperforms 68.18% 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.
- DXC has a Debt to FCF ratio of 4.26. This is comparable to the rest of the industry: DXC outperforms 55.68% of its industry peers.
- DXC has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of DXC (1.25) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.35
WACC7.7%
2.3 Liquidity
- DXC has a Current 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.
- With a Current ratio value of 1.09, DXC is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- 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 Quick ratio of 1.09. This is in the lower half of the industry: DXC underperforms 72.73% 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%.
- The Earnings Per Share has been decreasing by -9.24% on average over the past years.
- Looking at the last year, DXC shows a decrease in Revenue. The Revenue has decreased by -4.13% in the last year.
- DXC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.05% yearly.
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
- Based on estimates for the next years, DXC will show a decrease in Earnings Per Share. The EPS will decrease by -0.18% on average per year.
- Based on estimates for the next years, DXC will show a decrease in Revenue. The Revenue will decrease by -1.46% on average per year.
EPS Next Y-7.9%
EPS Next 2Y-3.78%
EPS Next 3Y-0.18%
EPS Next 5YN/A
Revenue Next Year-1.18%
Revenue Next 2Y-1.87%
Revenue Next 3Y-1.46%
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. Valuation
4.1 Price/Earnings Ratio
- DXC is valuated cheaply with a Price/Earnings ratio of 4.55.
- DXC's Price/Earnings ratio is rather cheap when compared to the industry. DXC is cheaper than 95.45% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DXC to the average of the S&P500 Index (27.30), we can say DXC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 4.69, the valuation of DXC can be described as very cheap.
- 97.73% of the companies in the same industry are more expensive than DXC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DXC to the average of the S&P500 Index (24.04), we can say DXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 4.69 |
4.2 Price Multiples
- DXC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DXC is cheaper than 98.86% of the companies in the same industry.
- 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 | 2.78 | ||
| EV/EBITDA | 1.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.78%
EPS Next 3Y-0.18%
5. Dividend
5.1 Amount
- No dividends for DXC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
14.91
-0.26 (-1.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners96.52%
Inst Owner Change1.35%
Ins Owners1.2%
Ins Owner Change0.75%
Market Cap2.60B
Revenue(TTM)12.71B
Net Income(TTM)373.00M
Analysts50
Price Target16.08 (7.85%)
Short Float %6.14%
Short Ratio4.87
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)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%
PT rev (3m)-3.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)0%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 4.69 | ||
| P/S | 0.2 | ||
| P/FCF | 2.78 | ||
| P/OCF | 1.66 | ||
| P/B | 0.85 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 1.9 |
EPS(TTM)3.28
EY22%
EPS(NY)3.18
Fwd EY21.3%
FCF(TTM)5.36
FCFY35.97%
OCF(TTM)8.98
OCFY60.2%
SpS73.01
BVpS17.64
TBVpS3.88
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.08
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 | 0.9 |
F-Score7
WACC7.7%
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)-6.55%
EPS 3Y-0.58%
EPS 5Y-9.24%
EPS Q2Q%-9.68%
EPS Next Y-7.9%
EPS Next 2Y-3.78%
EPS Next 3Y-0.18%
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-1.18%
Revenue Next 2Y-1.87%
Revenue Next 3Y-1.46%
Revenue Next 5YN/A
EBIT growth 1Y-13.06%
EBIT growth 3Y0.55%
EBIT growth 5Y-21.62%
EBIT Next Year80.41%
EBIT Next 3Y20.14%
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.
What is the valuation status of DXC TECHNOLOGY CO (DXC) stock?
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.
Can you provide the PE and PB ratios for DXC stock?
The Price/Earnings (PE) ratio for DXC TECHNOLOGY CO (DXC) is 4.55 and the Price/Book (PB) ratio is 0.85.
What is the expected EPS growth for DXC TECHNOLOGY CO (DXC) stock?
The Earnings per Share (EPS) of DXC TECHNOLOGY CO (DXC) is expected to decline by -7.9% in the next year.