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DXC Technology

NYSE:DXC
Snowflake Description

Very undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DXC
NYSE
$17B
Market Cap
  1. Home
  2. US
  3. Software
Company description

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. The last earnings update was 74 days ago. More info.


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DXC Share Price and Events
7 Day Returns
-2.1%
NYSE:DXC
-0.9%
US IT
-0.8%
US Market
1 Year Returns
-37.3%
NYSE:DXC
23.1%
US IT
7%
US Market
DXC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
DXC Technology (DXC) -2.1% 0.4% 4.2% -37.3% 94.1% 10.3%
US IT -0.9% 3.5% 16.5% 23.1% 80.4% 107.7%
US Market -0.8% 2.7% 7.5% 7% 37.9% 47%
1 Year Return vs Industry and Market
  • DXC underperformed the IT industry which returned 23.1% over the past year.
  • DXC underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
DXC
Industry
5yr Volatility vs Market

Value

 Is DXC Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of DXC Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for DXC Technology.

NYSE:DXC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DXC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.061 (1 + (1- 21%) (43.62%))
1.286
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.286 * 5.96%)
10.39%

Discounted Cash Flow Calculation for NYSE:DXC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for DXC Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:DXC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.39%)
2019 1,125.00 Analyst x2 1,019.09
2020 2,407.50 Analyst x4 1,975.53
2021 2,735.00 Analyst x2 2,032.98
2022 3,001.41 Est @ 9.74% 2,020.97
2023 3,230.65 Est @ 7.64% 1,970.53
2024 3,429.83 Est @ 6.17% 1,895.06
2025 3,605.94 Est @ 5.13% 1,804.79
2026 3,765.08 Est @ 4.41% 1,707.03
2027 3,912.23 Est @ 3.91% 1,606.76
2028 4,051.30 Est @ 3.55% 1,507.23
Present value of next 10 years cash flows $17,539.97
NYSE:DXC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,051.30 × (1 + 2.73%) ÷ (10.39% – 2.73%)
$54,311.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $54,311.77 ÷ (1 + 10.39%)10
$20,205.95
NYSE:DXC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $17,539.97 + $20,205.95
$37,745.92
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $37,745.92 / 268.27
$140.7
NYSE:DXC Discount to Share Price
Calculation Result
Value per share (USD) From above. $140.70
Current discount Discount to share price of $64.61
= -1 x ($64.61 - $140.70) / $140.70
54.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price DXC Technology is available for.
Intrinsic value
>50%
Share price is $64.61 vs Future cash flow value of $140.7
Current Discount Checks
For DXC Technology to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • DXC Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • DXC Technology's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for DXC Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are DXC Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DXC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $6.05
NYSE:DXC Share Price ** NYSE (2019-04-22) in USD $64.61
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 31.72x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of DXC Technology.

NYSE:DXC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DXC Share Price ÷ EPS (both in USD)

= 64.61 ÷ 6.05

10.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DXC Technology is good value based on earnings compared to the US IT industry average.
  • DXC Technology is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does DXC Technology's expected growth come at a high price?
Raw Data
NYSE:DXC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
20.3%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.64x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:DXC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.67x ÷ 20.3%

0.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DXC Technology is good value based on expected growth next year.
Price based on value of assets
What value do investors place on DXC Technology's assets?
Raw Data
NYSE:DXC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $40.84
NYSE:DXC Share Price * NYSE (2019-04-22) in USD $64.61
United States of America IT Industry PB Ratio Median Figure of 125 Publicly-Listed IT Companies 4.35x
United States of America Market PB Ratio Median Figure of 5,186 Publicly-Listed Companies 1.91x
NYSE:DXC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DXC Share Price ÷ Book Value per Share (both in USD)

= 64.61 ÷ 40.84

1.58x

* Primary Listing of DXC Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DXC Technology is good value based on assets compared to the US IT industry average.
X
Value checks
We assess DXC Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. DXC Technology has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is DXC Technology expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is DXC Technology expected to grow at an attractive rate?
  • DXC Technology's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • DXC Technology's earnings growth is expected to exceed the United States of America market average.
  • DXC Technology's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DXC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DXC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 20.3%
NYSE:DXC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 0.8%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DXC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DXC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 21,768 2,634 4
2021-03-31 21,202 4,158 2,119 12
2020-03-31 20,876 3,641 1,804 16
2019-03-31 20,796 1,951 1,349 16
NYSE:DXC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 23,880 2,268 1,706
2018-09-30 24,162 2,618 1,947
2018-06-30 24,602 3,197 1,881
2018-03-31 24,556 3,243 1,751
2017-12-31 18,038 2,183 845
2017-09-30 14,495 2,246 173
2017-06-30 10,913 1,447 -8
2017-03-31 7,607 978 -123
2016-12-30 7,525 865 -83
2016-09-30 7,358 560 -94
2016-07-01 7,232 490 -22
2016-04-01 7,106 802 60

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • DXC Technology's earnings are expected to grow significantly at over 20% yearly.
  • DXC Technology's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DXC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from DXC Technology Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DXC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 10.25 11.02 8.63 4.00
2021-03-31 8.01 9.29 6.33 6.00
2020-03-31 6.61 7.88 5.27 9.00
2019-03-31 4.75 5.03 4.56 6.00
NYSE:DXC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 6.05
2018-09-30 6.85
2018-06-30 6.60
2018-03-31 6.15
2017-12-31 3.40
2017-09-30 0.81
2017-06-30 -0.05
2017-03-31 -0.88
2016-12-30 -0.59
2016-09-30 -0.68
2016-07-01 -0.16
2016-04-01 0.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • DXC Technology is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess DXC Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
DXC Technology has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has DXC Technology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare DXC Technology's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • DXC Technology has delivered over 20% year on year earnings growth in the past 5 years.
  • DXC Technology's 1-year earnings growth exceeds its 5-year average (101.9% vs 39.1%)
  • DXC Technology's earnings growth has exceeded the US IT industry average in the past year (101.9% vs 12.7%).
Earnings and Revenue History
DXC Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from DXC Technology Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DXC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 23,880.00 1,706.00 1,558.00
2018-09-30 24,162.00 1,947.00 1,535.00
2018-06-30 24,602.00 1,881.00 1,680.00
2018-03-31 24,556.00 1,751.00 1,602.00
2017-12-31 18,038.00 845.00 1,223.00
2017-09-30 14,495.00 173.00 1,196.00
2017-06-30 10,913.00 -8.00 931.00
2017-03-31 7,607.00 -123.00 974.00
2016-12-30 7,525.00 -83.00 987.00
2016-09-30 7,358.00 -94.00 997.00
2016-07-01 7,232.00 -22.00 1,017.00
2016-04-01 7,106.00 60.00 1,068.00
2016-01-01 7,209.00 43.00 1,056.00
2015-10-02 7,408.00 -172.00 1,113.00
2015-07-03 6,684.00 -315.00 1,141.00
2015-04-03 8,117.00 -222.00 1,220.00
2015-01-02 9,536.00 176.00 1,275.00
2014-10-03 10,815.00 647.00 1,267.00
2014-07-04 12,981.00 855.00 1,293.00
2014-03-28 8,899.00 499.00 1,116.00
2013-12-27 13,172.00 828.00 1,193.50
2013-09-27 13,480.00 663.00 1,150.50
2013-06-28 13,821.00 619.00 1,130.50
2013-03-29 14,195.00 278.00 1,197.00
2012-12-28 14,529.00 45.00 1,116.00
2012-09-28 14,680.00 -1,486.00 1,117.00
2012-06-29 14,959.00 -4,552.00 1,115.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • DXC Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • DXC Technology used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • DXC Technology has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess DXC Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
DXC Technology has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is DXC Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up DXC Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • DXC Technology's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • DXC Technology's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of DXC Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from DXC Technology Company Filings, last reported 3 months ago.

NYSE:DXC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 11,356.00 7,560.00 2,475.00
2018-09-30 11,837.00 7,027.00 2,780.00
2018-06-30 11,814.00 7,054.00 2,579.00
2018-03-31 13,837.00 8,379.00 2,648.00
2017-12-31 13,202.00 8,540.00 2,926.00
2017-09-30 12,507.00 8,525.00 2,671.00
2017-06-30 12,345.00 7,453.00 2,517.00
2017-03-31 2,166.00 2,964.00 1,263.00
2016-12-30 2,194.00 2,924.00 1,111.00
2016-09-30 2,325.00 3,303.00 1,054.00
2016-07-01 2,229.00 3,243.00 1,000.00
2016-04-01 2,032.00 2,644.00 1,244.00
2016-01-01 2,223.00 2,669.00 1,901.00
2015-10-02 3,046.00 2,610.00 1,818.00
2015-07-03 3,014.00 2,618.00 2,199.00
2015-04-03 2,965.00 2,518.00 2,076.00
2015-01-02 3,355.00 2,724.00 2,393.00
2014-10-03 3,719.00 2,783.00 1,923.00
2014-07-04 4,038.00 2,879.00 2,440.00
2014-03-28 3,944.00 2,888.00 2,443.00
2013-12-27 3,725.00 2,821.00 2,284.00
2013-09-27 3,308.00 2,702.00 2,095.00
2013-06-28 3,112.00 2,704.00 1,929.00
2013-03-29 3,160.00 2,732.00 2,060.00
2012-12-28 3,317.00 2,629.00 2,203.00
2012-09-28 2,885.00 3,387.00 1,856.00
2012-06-29 2,728.00 2,718.00 1,005.00
  • DXC Technology's level of debt (66.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (75.6% vs 66.6% today).
  • Debt is well covered by operating cash flow (30%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.8x coverage).
X
Financial health checks
We assess DXC Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. DXC Technology has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.18%
Current annual income from DXC Technology dividends. Estimated to be 1.3% next year.
If you bought $2,000 of DXC Technology shares you are expected to receive $24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • DXC Technology's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • DXC Technology's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DXC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DXC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31
2021-03-31 0.89 3.00
2020-03-31 0.81 7.00
2019-03-31 0.76 5.00
NYSE:DXC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-14 0.760 1.168
2018-10-11 0.760 1.192
2018-08-15 0.760 0.836
2018-05-24 0.760 0.892
2018-03-15 0.720 0.703
2017-11-10 0.720 0.730
2017-08-10 0.720 0.826
2017-05-18 0.720 0.925
2017-03-17 0.560 0.756
2016-12-15 0.560 0.865
2016-08-10 0.560 1.057
2016-05-17 0.560 1.184
2016-03-16 0.560 1.691
2015-11-04 0.560 1.661
2015-08-14 0.920 1.452
2015-05-19 0.920 1.378
2015-03-11 0.920 1.399
2014-11-07 0.920 1.435
2014-11-06 0.920 1.542
2014-08-14 0.920 1.560
2014-05-22 0.920 1.465
2014-05-08 0.920 1.506
2014-03-11 0.800 1.323
2013-12-18 0.800 1.375
2013-08-13 0.800 1.541
2013-05-20 0.800 1.727
2013-03-07 0.800 1.689
2012-12-18 0.800 1.837
2012-08-08 0.800 2.375
2012-05-21 0.800 3.242
2012-03-13 0.800 2.813
2011-12-12 0.800 2.905
2011-08-08 0.800 2.859
2011-05-20 0.800 2.132
2011-02-28 0.800 1.682
2010-12-13 0.800 1.579
2010-08-10 0.600 1.323
2010-05-20 0.600 1.269

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DXC Technology has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but DXC Technology only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of DXC Technology's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (13.4x coverage).
X
Income/ dividend checks
We assess DXC Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can DXC Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. DXC Technology has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of DXC Technology's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Lawrie
COMPENSATION $32,185,309
AGE 65
TENURE AS CEO 2 years
CEO Bio

Mr. John Michael Lawrie, also known as Mike, has been the Chairman of the Board, President and Chief Executive Officer of DXC Technology Company since April 1, 2017. Mr. Lawrie is a seasoned IT executive with a reputation for revitalizing complex global companies to deliver increased shareholder value by driving operational excellence, client-centric strategies and championing innovation. He has proven leadership ability and management skills and has experience in the information technology sector. Mr. Lawrie has more than 30 years of industry experience and extensive senior level management experience. Mr. Lawrie previously served as Chairman of CSC since December 15, 2015 until April 1, 2017 and Director since February 2012. Mr. Lawrie served as President and Chief Executive Officer of Computer Sciences Corporation (CSC) since joining it on March 19, 2012, and served as its Member of its Board of Directors since February 2012. He served as Group Chief Executive Officer of Misys Limited (also known as Misys Plc), the parent company of Misys Healthcare Systems Inc. from November 1, 2006 to February 2012 and also served as its Executive Director since November 2011. He served as a Partner of VA Partners LLC from 2005 to October 2006. He was a General Partner/Partner of ValueAct Capital Management L.P. (Also known as ValueAct Capital LLC) from 2005 to 2006. He served as the Chief Executive Officer of Siebel Systems Inc. from May 4, 2004 to April 12, 2005. He spent 27 years with IBM, served as Senior Vice President and Group Executive of IBM Corporation from 2001 to 2004, where he was responsible for sales and distribution of all IBM products and services worldwide. He served with IBM corporation from 1977 to 2004 as General Manager of IBM Europe (Paris), Middle East, Africa from 1998 to June 2001, which included operations in 124 countries and 90,000 employees, General Manager of Network Computing Division, U.S. from 1997 to 1998, General Manager of Industries, IBM, Asia Pacific, (Tokyo) from 1996 to 1997, General Manager of Software IBM Asia Pacific, (Tokyo) from 1995 to 1996 and General Manager of Great Lakes Area, U.S. from 1992 to 1995. Prior to 1990, he served a range of marketing, operational and financial roles in IBM. He served as the Executive Chairman of Allscripts Healthcare Solutions, Inc. (Also known as Allscripts-Misys Healthcare Solutions, Inc.) from October 2008 to August 20, 2010. He served as the Chairman at CSRA Inc. from November 27, 2015 to August 9, 2016. He is chairman of the board of directors of Perspecta Inc. He serves as a Trustee of Drexel University, Philadelphia. He served as a Director of Liveramp Holdings, Inc.(formerly known as Acxion Holdings) from September 27, 2006 to 2007. He served as a Director of Juniper Networks, Inc. from February 2007 to February 11, 2015 and its Lead Independent Director until February 11, 2015. He served as an Independent Director of Symbol Technologies, LLC (Also known as Motorola's Enterprise Mobility Division) since June 16, 2005. He served as a Director of Good Technology, Inc. since February 24, 2006. He served as a Director of SSA Global Technologies, Inc. (SSA Software) since September 2005 and System Software Associates Inc. since September 30, 2005. He served as a Director of Siebel Systems Inc. from May 3, 2004 to April 12, 2005. He served as a Director of Seibel Systems Inc. from May 3, 2004 to April 12, 2005. He served on the US Advisory Board of NTT DoCoMo. He served as a Trustee of Ohio University. Mr. Lawrie holds a BA in History from Ohio University and MBA from Drexel University in Philadelphia, PA.

CEO Compensation
  • Mike's compensation has increased by more than 20% in the past year.
  • Mike's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the DXC Technology management team in years:

2
Average Tenure
57
Average Age
  • The tenure for the DXC Technology management team is about average.
Management Team

Mike Lawrie

TITLE
Chairman
COMPENSATION
$32M
AGE
65
TENURE
2 yrs

Paul Saleh

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
61
TENURE
2 yrs

William Deckelman

TITLE
Executive VP
COMPENSATION
$5M
AGE
60
TENURE
2 yrs

Neil Manna

TITLE
Senior VP
AGE
55
TENURE
2 yrs

Dan Hushon

TITLE
CTO & Senior VP
AGE
49
TENURE
6.2 yrs

Erich Windmuller

TITLE
Chief Information Officer & Senior VP
TENURE
3.3 yrs

Jonathan Ford

TITLE
Head of Investor Relations

Chris Depippo

TITLE
Vice President of Ethics

Gary Stockman

TITLE
Chief Marketing & Communications Officer and Senior VP
AGE
57
TENURE
4.8 yrs

Jo Mason

TITLE
Executive VP & Chief Human Resources Officer
AGE
50
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the DXC Technology board of directors in years:

2
Average Tenure
64
Average Age
  • The average tenure for the DXC Technology board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mike Lawrie

TITLE
Chairman
COMPENSATION
$32M
AGE
65
TENURE
2 yrs

Mukesh Aghi

TITLE
Director
COMPENSATION
$318K
AGE
62
TENURE
2 yrs

David Herzog

TITLE
Director
COMPENSATION
$329K
AGE
59
TENURE
2 yrs

Manoj Singh

TITLE
Director
COMPENSATION
$313K
AGE
65
TENURE
2 yrs

Peter Rutland

TITLE
Lead Independent Director
COMPENSATION
$340K
AGE
39
TENURE
2 yrs

Michael Hayden

TITLE
Member of Cyber Advisory Committee
AGE
73
TENURE
9.6 yrs

Art Money

TITLE
Member of Cyber Advisory Committee
AGE
78
TENURE
9.6 yrs

John Gordon

TITLE
Member of Cyber Advisory Committee
AGE
71
TENURE
9.6 yrs

Sachin Lawande

TITLE
Director
COMPENSATION
$296K
AGE
51
TENURE
2 yrs

Bob Woods

TITLE
Director
COMPENSATION
$299K
AGE
63
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
02. Oct 18 Sell John Lawrie Individual 28. Sep 18 28. Sep 18 -2,500 $93.65 $-234,127
25. Jul 18 Sell Joanne Mason Individual 24. Jul 18 24. Jul 18 -1,726 $87.74 $-151,441
10. May 18 Sell John Lawrie Individual 09. May 18 09. May 18 -2,500 $102.94 $-257,348
30. Apr 18 Sell John Lawrie Individual 27. Apr 18 27. Apr 18 -2,500 $102.92 $-257,297
X
Management checks
We assess DXC Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. DXC Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is DXC Technology Company (NYSE:DXC) A Smart Choice For Dividend Investors?

Could DXC Technology Company (NYSE:DXC) be an attractive dividend share to own for the long haul? Investors are often drawn to a company for its dividend.. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Need To Know: DXC Technology Company (NYSE:DXC) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in DXC Technology Company (NYSE:DXC). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

What does DXC Technology Company's (NYSE:DXC) Balance Sheet Tell Us About Its Future?

the key to their continued success lies in its financial health. … Today we will look at DXC Technology’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Should You Consider DXC Technology Company (NYSE:DXC)?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on DXC Technology Company (NYSE:DXC) due to its excellent fundamentals in more than one area. … is a company with a

Simply Wall St -

Some DXC Technology Shareholders Are Down 36%

DXC Technology Company (NYSE:DXC) shareholders should be happy to see the share price up 14% in the last quarter. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit.

Simply Wall St -

Taking A Look At DXC Technology Company's (NYSE:DXC) ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are DXC Technology Company’s (NYSE:DXC) High Returns Really That Great?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Can DXC Technology Company (NYSE:DXC) Save Your Portfolio?

High quality stocks such as DXC Technology Company has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … Take the survey and be part of one of the most advanced studies of stock market investors to date.

Simply Wall St -

DXC Technology Company (NYSE:DXC) Is Trading At A 43.28% Discount

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Does DXC Technology Company's (NYSE:DXC) December Stock Price Reflect Its Future Growth?

DXC Technology Company (NYSE:DXC) closed yesterday at $56.76, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … One reason why investors are attracted to DXC is the high growth potential in the near future

Simply Wall St -

Company Info

Description

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS). The GBS segment offers technology solutions comprising enterprise, cloud application, and consulting services; application services; analytics services; business process services; and industry software and solutions. The GIS segment offers cloud and platform services; workplace, mobility, and Internet of Things services; and security solutions. The USPS segment delivers IT services and business solutions to all levels of government in the United States. This segment offers cloud, platform, and IT outsourcing services; enterprise and cloud application services; enterprise security solutions; mobile enterprise, virtual desktop and application, and workplace device services; and analytics services, such as analytics platforms, information governance, artificial intelligence, and advisory services. The company was formerly known as Computer Sciences Corporation and changed its name to DXC Technology Company in April 2017 as a result of its merger with the Enterprise Services business of Hewlett Packard Enterprise Company. DXC Technology Company was founded in 1959 and is headquartered in Tysons, Virginia.

Details
Name: DXC Technology Company
DXC
Exchange: NYSE
Founded: 1959
$17,333,001,392
268,271,187
Website: http://www.dxc.technology
Address: DXC Technology Company
1775 Tysons Boulevard,
Tysons,
Virginia, 22102,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DXC Common Stock New York Stock Exchange US USD 02. Jan 1968
DB 2XT Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0I6U Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV DXC * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
150,000
DXC Technology employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 01:07
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/21
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.