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Market Cap

US$8.7b

Last Updated

2021/09/22 00:11 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

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

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.


Market Performance


7 Day Return

-2.5%

DXC

-1.8%

US IT

-1.8%

US Market


1 Year Return

101.4%

DXC

22.3%

US IT

31.5%

US Market

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.


Shareholder returns

DXCIndustryMarket
7 Day-2.5%-1.8%-1.8%
30 Day-2.7%-1.4%-0.9%
90 Day-8.1%-2.1%0.8%
1 Year101.4%101.4%23.3%22.3%33.5%31.5%
3 Year-62.1%-63.6%74.7%69.2%57.5%47.8%
5 Year-18.8%-33.8%192.8%172.8%119.1%95.3%

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

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: 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).


Future Growth

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

34.4%

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%).


Past Performance

How has DXC Technology performed over the past 5 years?

-44.4%

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.


Financial Health

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).


Balance Sheet


Dividend

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

0.46%

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.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Mike Salvino (56 yo)

2yrs

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 ($USD21.73M) is above average for companies of similar size in the US market ($USD6.43M).

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


Leadership Team

Experienced Management: DXC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: DXC's board of directors are considered experienced (4.4 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

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$8.691b
  • Shares outstanding: 251.90m
  • Website: https://www.dxc.technology

Number of Employees


Location

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

Listings


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 Analysis2021/09/22 00:11
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
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.