DB:12DA

Stock Analysis Report

Dell Technologies

Executive Summary

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) products and services worldwide.

Rewards

Trading at 39.5% below its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -76.3% per year for the next 3 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Good value with questionable track record.


Similar Companies

Share Price & News

How has Dell Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 12DA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

12DA

2.2%

DE Tech

1.7%

DE Market


1 Year Return

0.8%

12DA

21.2%

DE Tech

15.0%

DE Market

Return vs Industry: 12DA underperformed the German Tech industry which returned 21.2% over the past year.

Return vs Market: 12DA underperformed the German Market which returned 15% over the past year.


Shareholder returns

12DAIndustryMarket
7 Day0.6%2.2%1.7%
30 Day5.7%13.8%0.8%
90 Day-4.3%19.5%3.7%
1 Year0.8%0.8%22.1%21.2%18.5%15.0%
3 Yearn/a154.6%149.2%17.1%6.9%
5 Yearn/a97.3%74.5%24.3%7.3%

Price Volatility Vs. Market

How volatile is Dell Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dell Technologies undervalued compared to its fair value and its price relative to the market?

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 12DA (€47.88) is trading below our estimate of fair value (€79.09)

Significantly Below Fair Value: 12DA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 12DA is good value based on its PE Ratio (10.1x) compared to the Tech industry average (26.3x).

PE vs Market: 12DA is good value based on its PE Ratio (10.1x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 12DA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 12DA has negative assets, so we can't compare its PB Ratio to the XE Tech industry average.


Next Steps

Future Growth

How is Dell Technologies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-76.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 12DA's earnings are forecast to decline over the next 3 years (-76.3% per year).

Earnings vs Market: 12DA's earnings are forecast to decline over the next 3 years (-76.3% per year).

High Growth Earnings: 12DA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 12DA's revenue (1.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 12DA's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 12DA's Return on Equity is forecast to be very high in 3 years time (207.5%).


Next Steps

Past Performance

How has Dell Technologies performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 12DA has a large one-off loss of $530.0M impacting its November 1 2019 financial results.

Growing Profit Margin: 12DA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 12DA has become profitable over the past 5 years, growing earnings by 14.6% per year.

Accelerating Growth: 12DA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 12DA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (-8.4%).


Return on Equity

High ROE: Whilst 12DA's Return on Equity (124.48%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dell Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 12DA's short term assets ($34.8B) do not cover its short term liabilities ($49.1B).

Long Term Liabilities: 12DA's short term assets ($34.8B) do not cover its long term liabilities ($63.9B).


Debt to Equity History and Analysis

Debt Level: 12DA's debt to equity ratio (1351.9%) is considered high.

Reducing Debt: 12DA's debt to equity ratio has increased from 466% to 1351.9% over the past 5 years.


Balance Sheet

Inventory Level: 12DA has a low level of unsold assets or inventory.

Debt Coverage by Assets: 12DA's debt is not covered by short term assets (assets are 0.7x debt).


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: 12DA is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 12DA is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Dell Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 12DA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 12DA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 12DA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 12DA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 12DA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Michael Dell (54yo)

US$3,623,801

Compensation

Mr. Michael S. Dell serves as the Founder at MSD Capital, L.P. He has been the Chief Executive Officer at Dell Corporation Limited since 1992. Mr. Dell serves as Chairman and Chief Executive Officer at Del ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD3.62M) is about average for companies of similar size in the German market ($USD4.37M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Dell
Chairman & CEO0yrsUS$3.62m0.076% $26.9m
Jeffrey Clarke
Vice Chairman & COO0.2yrsUS$6.45m0.0052% $1.9m
Thomas Sweet
Executive VP & CFO6.1yrsUS$4.23m0.0040% $1.4m
Allison Dew
Chief Marketing Officer1.9yrsUS$13.42m0.0063% $2.2m
William Scannell
President of Global Enterprise Sales3.4yrsUS$6.50m0.053% $18.7m
Maya McReynolds
Senior VP of Corporate Finance & Chief Accounting Officer0yrsno data0.0060% $2.1m
Robert Williams
Senior Vice President of Investor Relations0yrsno datano data
Richard Rothberg
General Counsel & Secretary6.3yrsno data0.0076% $2.7m
Steven Price
Chief Human Resources Officer3.4yrsno data0.0023% $818.6k
Karen Quintos
Executive VP & Chief Customer Officer9.4yrsno data0.023% $8.1m

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 12DA's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Dell
Chairman & CEO0yrsUS$3.62m0.076% $26.9m
Jeffrey Clarke
Vice Chairman & COO0.2yrsUS$6.45m0.0052% $1.9m
Egon Durban
Director6.3yrsno datano data
David Dorman
Independent Director3.4yrsUS$544.99k0.00098% $348.8k
William Green
Independent Director3.4yrsUS$519.99k0.0020% $704.7k
Ellen Kullman
Independent Director3.4yrsUS$324.99k0.00031% $110.3k
Simon Patterson
Director6.3yrsno datano data
Lynn Vojvodich
Independent Director0.8yrsno datano data

3.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 12DA's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Dell Technologies Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dell Technologies Inc.
  • Ticker: 12DA
  • Exchange: DB
  • Founded: 1984
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$38.588b
  • Listing Market Cap: US$35.590b
  • Shares outstanding: 729.74m
  • Website: https://www.delltechnologies.com/en-us/index.htm

Number of Employees


Location

  • Dell Technologies Inc.
  • One Dell Way
  • Round Rock
  • Texas
  • 78682
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
12DDB (Deutsche Boerse AG)Class V Common StockDEEURAug 2016
DELLNYSE (New York Stock Exchange)YesClass C Common SharesUSUSDDec 2018
DELLWBAG (Wiener Boerse AG)YesClass C Common SharesATEURDec 2018
DELLC *BMV (Bolsa Mexicana de Valores)YesClass C Common SharesMXMXNDec 2018
12DAMUN (Boerse Muenchen)YesClass C Common SharesDEEURDec 2018
12DADB (Deutsche Boerse AG)YesClass C Common SharesDEEURDec 2018
D1EL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLJan 2020

Biography

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) products and services worldwide. It operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware. The ISG segment provides traditional and next-generation storage solutions; and rack, blade, tower, and hyperscale servers. It also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; and attached software, and peripherals, as well as support and deployment, configuration, and extended warranty services. The CSG segment offers desktops, notebooks, and workstations; displays and projectors; third-party software and peripherals; and support and deployment, configuration, and extended warranty services. The VMware segment offers compute, cloud management, and networking, as well as security storage, availability, and other end-user computing offerings that provides a flexible digital foundation to enable the digital transformation. The company also offers cloud-native platform that makes software development and IT operations a strategic advantage for customers; information security and cybersecurity solutions; cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments; cloud-based integration services; and financial services. It has a collaboration with Microsoft to deliver a joint Internet of Things (IoT) solution, as well as a partnership with ipoque GmbH. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:17
End of Day Share Price2020/02/14 00:00
Earnings2019/11/01
Annual Earnings2019/02/01


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.