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 adequate balance sheet.


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

1.2%

NYSE:DXC

-0.9%

US IT

-0.4%

US Market


1 Year Return

-31.3%

NYSE:DXC

24.7%

US IT

4.3%

US Market

DXC underperformed the IT industry which returned 25.1% over the past year.

DXC underperformed the Market in United States of America which returned 4.3% over the past year.


Share holder returns

DXCIndustryMarket
7 Day1.2%-0.9%-0.4%
30 Day1.6%3.8%2.8%
90 Day-15.6%8.4%2.7%
1 Year-30.4%-31.3%26.1%24.7%6.6%4.3%
3 Year35.1%13.3%104.7%95.5%50.9%40.9%
5 Year145.6%-15.7%130.5%106.9%55.3%38.2%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

DXC Technology is good value based on expected growth next year.


Price Based on Value of Assets

DXC Technology is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is DXC Technology expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

DXC Technology's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

DXC Technology's earnings are expected to grow significantly at over 20% yearly.

DXC Technology's revenue growth is positive but not above the United States of America market average.

DXC Technology's earnings growth is expected to exceed the United States of America market average.

DXC Technology's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

DXC Technology is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has DXC Technology performed over the past 5 years?

47.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

DXC Technology has delivered over 20% year on year earnings growth in the past 5 years.

DXC Technology's 1-year earnings growth is negative, it can't be compared to the 5-year average.

DXC Technology's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

DXC Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

DXC Technology used its assets less efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

DXC Technology has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is DXC Technology's financial position?


Financial Position Analysis

DXC Technology's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

DXC Technology's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

DXC Technology's level of debt (63.2%) 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 (73.1% vs 63.2% today).

Debt is well covered by operating cash flow (24.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

1.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

DXC Technology's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

DXC Technology's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).

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

Dividends paid are well covered by earnings (5.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (12.9x coverage).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mike Lawrie (65yo)

2.2yrs

Tenure

US$32,185,309

Compensation

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 w ...


CEO Compensation Analysis

Mike's remuneration is higher than average for companies of similar size in United States of America.

Mike's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.2yrs

Average Tenure

57yo

Average Age

The tenure for the DXC Technology management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

64yo

Average Age

The average tenure for the DXC Technology board of directors is less than 3 years, this suggests a new board.


Insider Trading

DXC Technology individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,530,83520 Jun 19
Joanne Mason
EntityIndividual
Shares48,679
Max PriceUS$52.00
SellUS$234,12702 Oct 18
John Lawrie
EntityIndividual
Role
Chairman
Chairman of the Board
Shares2,500
Max PriceUS$93.65
SellUS$151,44125 Jul 18
Joanne Mason
EntityIndividual
Shares1,726
Max PriceUS$87.74

Ownership Breakdown


Management Team

  • Mike Lawrie (65yo)

    Chairman

    • Tenure: 2.2yrs
    • Compensation: $32.19m
  • Samson David (49yo)

    Senior VP & Global Head of Delivery and Operations

    • Tenure: 0.1yrs
  • William Deckelman (60yo)

    Executive VP

    • Tenure: 2.2yrs
    • Compensation: $4.60m
  • Paul Saleh (61yo)

    Executive VP & CFO

    • Tenure: 2.2yrs
    • Compensation: $6.92m
  • Chris Depippo

    Vice President of Ethics

  • Neil Manna (55yo)

    Senior VP

    • Tenure: 2.2yrs
  • Jonathan Ford

    Head of Investor Relations

  • Gary Stockman (57yo)

    Chief Marketing & Communications Officer and Senior VP

    • Tenure: 5.0yrs
  • Dan Hushon (49yo)

    CTO & Senior VP

    • Tenure: 6.3yrs
  • Erich Windmuller

    Chief Information Officer & Senior VP

    • Tenure: 3.4yrs

Board Members

  • John Gordon (71yo)

    Member of Cyber Advisory Committee

    • Tenure: 9.8yrs
  • Mike Lawrie (65yo)

    Chairman

    • Tenure: 2.2yrs
    • Compensation: $32.19m
  • David Herzog (59yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: $328.66k
  • Bob Woods (63yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: $298.81k
  • Manoj Singh (65yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: $312.72k
  • Sachin Lawande (51yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: $296.31k
  • Mukesh Aghi (62yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: $317.72k
  • Art Money (78yo)

    Member of Cyber Advisory Committee

    • Tenure: 9.8yrs
  • Peter Rutland (39yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: $340.22k
  • Michael Hayden (73yo)

    Member of Cyber Advisory Committee

    • Tenure: 9.8yrs

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$14.488b
  • Shares outstanding: 268.60m
  • Website: Click here

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 Analysis2019/06/25 00:54
End of Day Share Price2019/06/24 00:00
Earnings2019/03/31
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.