NYSE:DXC

Stock Analysis Report

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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

Fair value 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

DXC

4.5%

US IT

3.9%

US Market


1 Year Return

-34.1%

DXC

27.7%

US IT

18.5%

US Market

Return vs Industry: DXC underperformed the US IT industry which returned 27.6% over the past year.

Return vs Market: DXC underperformed the US Market which returned 17.2% over the past year.


Shareholder returns

DXCIndustryMarket
7 Day9.6%4.5%3.9%
30 Day-10.7%-4.6%-4.3%
90 Day10.5%6.1%8.1%
1 Year-32.4%-34.1%29.1%27.7%21.2%18.5%
3 Year-74.6%-79.1%96.4%88.8%38.2%29.0%
5 Year-17.1%-71.9%158.1%136.9%84.3%63.4%

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 ($17.85) is trading below our estimate of fair value ($59.99)

Significantly Below Fair Value: DXC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DXC is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: DXC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DXC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DXC is good value based on its PB Ratio (1x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is DXC Technology forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

97.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: DXC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DXC's is expected to become profitable in the next 3 years.

Revenue vs Market: DXC's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: DXC's revenue is forecast to decline over the next 3 years (-7.1% 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 (12.5%).


Next Steps

Past Performance

How has DXC Technology performed over the past 5 years?

-41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXC is currently unprofitable.

Growing Profit Margin: DXC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DXC is unprofitable, and losses have increased over the past 5 years at a rate of 41.4% per year.

Accelerating Growth: Unable to compare DXC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DXC is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (8.6%).


Return on Equity

High ROE: DXC has a negative Return on Equity (-115.84%), as it is currently unprofitable.


Next Steps

Financial Health

How is DXC Technology's financial position?


Financial Position Analysis

Short Term Liabilities: DXC's short term assets ($10.7B) exceed its short term liabilities ($8.3B).

Long Term Liabilities: DXC's short term assets ($10.7B) do not cover its long term liabilities ($14.6B).


Debt to Equity History and Analysis

Debt Level: DXC's debt to equity ratio (222.4%) is considered high.

Reducing Debt: DXC's debt to equity ratio has increased from 80.6% to 222.4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DXC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DXC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.8% per year.


Next Steps

Dividend

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

1.65%

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?

1.0yrs

Average management tenure


CEO

Mike Salvino (55 yo)

1

Tenure

US$14,126,690

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 ($USD14.13M) is above average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Salvino
CEO, President & Director1yrUS$14.13m0.015%
$ 667.0k
Paul Saleh
Executive VP & CFO3.42yrsUS$4.38m0.075%
$ 3.4m
Mary Finch
Executive VP & Chief Human Resources Officer0.92yrUS$4.20m0%
$ 0
Vinod Bagal
Executive Vice President of Global Delivery0.92yrUS$2.98m0%
$ 0
Neil Manna
Senior VP3.42yrsno data0.0088%
$ 398.8k
Chris Drumgoole
Executive VP & Chief Information Officer0.67yrno datano data
Shailesh Murali
Head of M&A and Investor Relationsno datano datano data
William Deckelman
Executive VP & General Counsel3.42yrsUS$2.95m0.030%
$ 1.4m
Chris Depippo
Vice President of Ethicsno datano datano data
Shari Wenker
Senior VP and Chief Marketing & Communications Officer0.67yrno datano data
H. C. Diao
Senior VP of Treasury & Corporate Developmentno datano datano data
Troy Richardson
Senior Vice President of Global Sales1.67yrsno datano data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Management: DXC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Salvino
CEO, President & Director1yrUS$14.13m0.015%
$ 667.0k
David Herzog
Independent Director3.42yrsUS$353.48k0.0046%
$ 210.5k
Robert Woods
Independent Director3.42yrsUS$298.48k0.0088%
$ 397.0k
Arthur Money
Member of Cyber Advisory Committee11yrsno datano data
John Gordon
Member of Cyber Advisory Committee11yrsno datano data
David Barnes
Independent Director0.083yrno datano data
Amy Alving
Independent Director3.42yrsUS$298.48k0.0046%
$ 210.1k
Ian Read
Independent Chairman0.50yrno data0.0051%
$ 230.0k
Michael Hayden
Member of Cyber Advisory Committee11yrsno datano data
Mukesh Aghi
Independent Director3.42yrsUS$323.48k0.0082%
$ 373.4k
Manoj Singh
Independent Director3.42yrsUS$328.48k0.0046%
$ 210.1k
Mary Krakauer
Independent Director2.5yrsUS$298.48k0.0036%
$ 162.9k

3.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: DXC's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


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$4.537b
  • Shares outstanding: 254.19m
  • 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
D1XC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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 Analysis2020/09/30 23:39
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.