NYSE:DXC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has DXC Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

DXC

0.4%

US IT

1.8%

US Market


1 Year Return

-68.4%

DXC

23.2%

US IT

7.3%

US Market

Return vs Industry: DXC underperformed the US IT industry which returned 23.2% over the past year.

Return vs Market: DXC underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

DXCIndustryMarket
7 Day-0.5%0.4%1.8%
30 Day-12.9%-0.3%-0.7%
90 Day-50.1%-2.7%0.06%
1 Year-67.9%-68.4%24.4%23.2%9.7%7.3%
3 Year-39.9%-49.7%96.4%88.4%46.3%36.9%
5 Year36.8%-53.1%152.6%129.5%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

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

Undervalued: DXC ($27.9) is trading below our estimate of fair value ($89.93)

Significantly Undervalued: DXC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DXC is good value based on its PE Ratio (6.6x) compared to the IT industry average (36.9x).

PE vs Market: DXC is good value based on its PE Ratio (6.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DXC is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: DXC is good value based on its PB Ratio (0.7x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is DXC Technology forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXC's forecast earnings growth (28.3% per year) is above the savings rate (2.7%).

Earnings vs Market: DXC's earnings (28.3% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DXC's revenue (0.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DXC's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DXC's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has DXC Technology performed over the past 5 years?

48.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DXC's earnings have grown significantly by 48.6% per year over the past 5 years.

Accelerating Growth: DXC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DXC had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: DXC's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: DXC's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: DXC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is DXC Technology's financial position?


Financial Position Analysis

Short Term Liabilities: DXC's short term assets ($8.2B) do not cover its short term liabilities ($9.3B)

Long Term Liabilities: DXC's short term assets (8.2B) do not cover its long term liabilities (12.0B)


Debt to Equity History and Analysis

Debt Level: DXC's debt to equity ratio (73%) is considered high

Reducing Debt: DXC's debt to equity ratio has increased from 64.2% to 73% over the past 5 years.

Debt Coverage: DXC's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: DXC's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: DXC's debt is covered by short term assets (assets are 1.000240x debt).


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Upcoming Dividend Payment

Purchase DXC Technology before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.7%industryaverage1.3%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DXC's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DXC's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: DXC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DXC's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.8%), DXC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DXC's dividends in 3 years are forecast to be thoroughly covered by earnings (9.9% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Mike Salvino (54yo)

0.08yrs

Tenure

0

Mr. Michael J. Salvino, also known as Mike, serves as President and Chief Executive Officer of DXC Technology Company since September 12, 2019. Mr. Salvino served as a Managing Director since September 201 ...


Management Age and Tenure

2.5yrs

Average Tenure

55yo

Average Age

Experienced Management: DXC's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: DXC's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,530,83520 Jun 19
Joanne Mason
EntityIndividual
Shares48,679
Max PriceUS$52.00

Ownership Breakdown


Management Team

  • Jim Smith (52yo)

    Executive VP of Digital Transformation & Customer Advocacy and Co-Lead of Americas

    • Tenure: 0yrs
    • Compensation: US$3.61m
  • Bill Deckelman (61yo)

    Executive VP

    • Tenure: 2.5yrs
    • Compensation: US$2.95m
  • Paul Saleh (62yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$7.71m
  • Ed Ho (56yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$3.56m
  • Mike Salvino (54yo)

    CEO, President & Director

    • Tenure: 0.08yrs
  • Neil Manna (56yo)

    Senior VP

    • Tenure: 2.5yrs
  • Samson David (50yo)

    Senior VP & Global Head of Delivery and Operations

    • Tenure: 0.4yrs
  • Dan Hushon (50yo)

    CTO & Senior VP

    • Tenure: 6.7yrs
  • Erich Windmuller

    Chief Information Officer & Senior VP

    • Tenure: 3.8yrs
  • Jonathan Ford

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • David Herzog (60yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$331.66k
  • Art Money (79yo)

    Member of Cyber Advisory Committee

    • Tenure: 10.1yrs
  • Mike Salvino (54yo)

    CEO, President & Director

    • Tenure: 0.08yrs
  • Peter Rutland (40yo)

    Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$346.66k
  • Sachin Lawande (52yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$301.66k
  • John Gordon (72yo)

    Member of Cyber Advisory Committee

    • Tenure: 10.1yrs
  • Mike Lawrie (66yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: US$17.26m
  • Michael Hayden (74yo)

    Member of Cyber Advisory Committee

    • Tenure: 10.1yrs
  • Mukesh Aghi (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$326.66k
  • Manoj Singh (66yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$327.94k

Company Information

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


Key Information

  • Name: DXC Technology Company
  • Ticker: DXC
  • Exchange: NYSE
  • Founded: 1959
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$7.309b
  • Shares outstanding: 261.96m
  • Website: https://www.dxc.technology

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
2XTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
DXC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0I6ULSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

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 B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:49
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.