company background image
2XT

DXC Technology DB:2XT Stock Report

Last Price

US$28.95

Market Cap

US$7.1b

7D

2.5%

1Y

12.7%

Updated

20 Apr, 2022

Data

Company Financials +
2XT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

2XT Stock Overview

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia.

DXC Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DXC Technology
Historical stock prices
Current Share PriceUS$28.95
52 Week HighUS$37.50
52 Week LowUS$25.69
Beta2.24
1 Month Change-3.29%
3 Month Change2.82%
1 Year Change12.67%
3 Year Change-50.08%
5 Year Change-58.65%
Change since IPO-9.16%

Recent News & Updates

Shareholder Returns

2XTDE ITDE Market
7D2.5%-0.5%0.6%
1Y12.7%3.3%-9.6%

Return vs Industry: 2XT exceeded the German IT industry which returned 3.3% over the past year.

Return vs Market: 2XT exceeded the German Market which returned -9.6% over the past year.

Price Volatility

Is 2XT's price volatile compared to industry and market?
2XT volatility
2XT Average Weekly Movement6.9%
IT Industry Average Movement7.0%
Market Average Movement6.5%
10% most volatile stocks in DE Market10.6%
10% least volatile stocks in DE Market3.4%

Stable Share Price: 2XT is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 2XT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1959134,000Mike Salvinohttps://www.dxc.technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their digital transformation journeys; and software engineering and solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.

DXC Technology Fundamentals Summary

How do DXC Technology's earnings and revenue compare to its market cap?
2XT fundamental statistics
Market CapUS$7.68b
Earnings (TTM)-US$610.00m
Revenue (TTM)US$16.64b

0.5x

P/S Ratio

-12.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2XT income statement (TTM)
RevenueUS$16.64b
Cost of RevenueUS$12.89b
Gross ProfitUS$3.75b
Other ExpensesUS$4.36b
Earnings-US$610.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-2.50
Gross Margin22.54%
Net Profit Margin-3.67%
Debt/Equity Ratio84.0%

How did 2XT perform over the long term?

See historical performance and comparison

Valuation

Is DXC Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2XT (€28.95) is trading below our estimate of fair value (€129.46)

Significantly Below Fair Value: 2XT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2XT is unprofitable, so we can't compare its PE Ratio to the German IT industry average.

PE vs Market: 2XT is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2XT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2XT is good value based on its PB Ratio (1.6x) compared to the DE IT industry average (3.3x).


Future Growth

How is DXC Technology forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

66.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2XT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.05%).

Earnings vs Market: 2XT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2XT's is expected to become profitable in the next 3 years.

Revenue vs Market: 2XT's revenue is expected to decline over the next 3 years (-0.08% per year).

High Growth Revenue: 2XT's revenue is forecast to decline over the next 3 years (-0.08% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2XT's Return on Equity is forecast to be low in 3 years time (19.3%).


Past Performance

How has DXC Technology performed over the past 5 years?

-36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2XT is currently unprofitable.

Growing Profit Margin: 2XT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2XT is unprofitable, and losses have increased over the past 5 years at a rate of 36.9% per year.

Accelerating Growth: Unable to compare 2XT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2XT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (23.9%).


Return on Equity

High ROE: 2XT has a negative Return on Equity (-11.93%), as it is currently unprofitable.


Financial Health

How is DXC Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 2XT's short term assets ($7.5B) exceed its short term liabilities ($6.7B).

Long Term Liabilities: 2XT's short term assets ($7.5B) do not cover its long term liabilities ($8.1B).


Debt to Equity History and Analysis

Debt Level: 2XT's net debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: 2XT's debt to equity ratio has reduced from 128.7% to 84% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2XT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2XT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 4.4% per year.


Dividend

What is DXC Technology current dividend yield, its reliability and sustainability?

0.73%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2XT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2XT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2XT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2XT's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 2XT is not paying a notable dividend for the German market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2XT has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Mike Salvino (56 yo)

2.58yrs

Tenure

US$21,733,120

Compensation

Mr. Michael J. Salvino, also known as Mike, serves as President and Chief Executive Officer of DXC Technology Company since September 12, 2019. Prior to joining DXC, Mr. Salvino served as Managing Director...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD21.73M) is above average for companies of similar size in the German market ($USD2.56M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 2XT's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2XT's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2XT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DXC Technology Company's employee growth, exchange listings and data sources


Key Information

  • Name: DXC Technology Company
  • Ticker: 2XT
  • Exchange: DB
  • Founded: 1959
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: US$7.679b
  • Listing Market Cap: US$7.073b
  • Shares outstanding: 244.48m
  • Website: https://www.dxc.technology

Number of Employees


Location

  • DXC Technology Company
  • 1775 Tysons Boulevard
  • Tysons
  • Virginia
  • 22102
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/04/20 00:00
End of Day Share Price2022/04/19 00:00
Earnings2021/12/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.