DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. More Details
Undervalued with moderate growth potential.
Share Price & News
How has DXC Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DXC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: DXC's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: DXC exceeded the US IT industry which returned 24.7% over the past year.
Return vs Market: DXC exceeded the US Market which returned 33% over the past year.
Long-Term 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
2 weeks ago | Simply Wall StInvestors in DXC Technology (NYSE:DXC) have made a favorable return of 74% over the past year
1 month ago | Simply Wall StDXC Technology's (NYSE:DXC) Shareholders May Want To Dig Deeper Than Statutory Profit
1 month ago | Simply Wall StDoes DXC Technology (NYSE:DXC) Have A Healthy Balance Sheet?
Is DXC Technology undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DXC ($34.5) is trading below our estimate of fair value ($120.63)
Significantly Below Fair Value: 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 (26x) compared to the US IT industry average (34.1x).
PE vs Market: DXC is poor value based on its PE Ratio (26x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: DXC is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: DXC is good value based on its PB Ratio (1.7x) compared to the US IT industry average (5.3x).
How is DXC Technology forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DXC's forecast earnings growth (34.4% per year) is above the savings rate (2%).
Earnings vs Market: DXC's earnings (34.4% per year) are forecast to grow faster than the US market (14.9% 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 (9.8% 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
Future ROE: DXC's Return on Equity is forecast to be low in 3 years time (18.2%).
How has DXC Technology performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DXC has a large one-off gain of $1.3B impacting its June 30 2021 financial results.
Growing Profit Margin: DXC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DXC has become profitable over the past 5 years, growing earnings by -44.4% per year.
Accelerating Growth: DXC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DXC has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (28%).
Return on Equity
High ROE: DXC's Return on Equity (6.2%) is considered low.
How is DXC Technology's financial position?
Financial Position Analysis
Short Term Liabilities: DXC's short term assets ($7.5B) exceed its short term liabilities ($7.4B).
Long Term Liabilities: DXC's short term assets ($7.5B) do not cover its long term liabilities ($8.1B).
Debt to Equity History and Analysis
Debt Level: DXC's debt to equity ratio (76.6%) is considered high.
Reducing Debt: DXC's debt to equity ratio has reduced from 139.3% to 76.6% over the past 5 years.
Debt Coverage: DXC's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: DXC's interest payments on its debt are not well covered by EBIT (0.9x coverage).
What is DXC Technology current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DXC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DXC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DXC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DXC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: DXC is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DXC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Salvino (56 yo)
Mr. Michael J. Salvino, also known as Mike, serves as President and Chief Executive Officer of DXC Technology Company since September 12, 2019. Prior to joining DXC, Mr. Salvino served as Managing Director...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD21.73M) is above average for companies of similar size in the US market ($USD6.43M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: DXC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: DXC's board of directors are considered experienced (4.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DXC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
DXC Technology Company's company bio, employee growth, exchange listings and data sources
- Name: DXC Technology Company
- Ticker: DXC
- Exchange: NYSE
- Founded: 1959
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$8.691b
- Shares outstanding: 251.90m
- Website: https://www.dxc.technology
Number of Employees
- DXC Technology Company
- 1775 Tysons Boulevard
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/22 00:11|
|End of Day Share Price||2021/09/21 00:00|
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.