NYSE:DELL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and support IT hardware, software, and services solutions worldwide. More Details


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Dell Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DELL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

DELL

-4.1%

US Tech

-2.4%

US Market


1 Year Return

39.1%

DELL

84.4%

US Tech

18.2%

US Market

Return vs Industry: DELL underperformed the US Tech industry which returned 88.6% over the past year.

Return vs Market: DELL exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

DELLIndustryMarket
7 Day-1.4%-4.1%-2.4%
30 Day4.7%8.5%4.2%
90 Day12.5%18.6%6.3%
1 Year39.1%39.1%86.5%84.4%20.9%18.2%
3 Yearn/a182.3%169.8%41.2%31.8%
5 Yearn/a298.9%258.9%84.8%63.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dell Technologies undervalued compared to its fair value and its price relative to the market?

26.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DELL ($69.5) is trading below our estimate of fair value ($94.74)

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


Price To Earnings Ratio

PE vs Industry: DELL is poor value based on its PE Ratio (24.3x) compared to the US Tech industry average (21.3x).

PE vs Market: DELL is poor value based on its PE Ratio (24.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: DELL is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: DELL has negative assets, so we can't compare its PB Ratio to the US Tech industry average.


Next Steps

Future Growth

How is Dell Technologies forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DELL's forecast earnings growth (14.1% per year) is above the savings rate (2.2%).

Earnings vs Market: DELL's earnings (14.1% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: DELL's earnings are forecast to grow, but not significantly.

Revenue vs Market: DELL's revenue (2.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: DELL's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DELL's Return on Equity is forecast to be very high in 3 years time (63.8%).


Next Steps

Past Performance

How has Dell Technologies performed over the past 5 years?

41.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DELL has a large one-off gain of $274.0M impacting its July 31 2020 financial results.

Growing Profit Margin: DELL's current net profit margins (2.3%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: DELL has become profitable over the past 5 years, growing earnings by 41.5% per year.

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

Earnings vs Industry: DELL had negative earnings growth (-15.8%) over the past year, making it difficult to compare to the Tech industry average (-0.4%).


Return on Equity

High ROE: Whilst DELL's Return on Equity (49.34%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Dell Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: DELL's short term assets ($41.1B) do not cover its short term liabilities ($54.3B).

Long Term Liabilities: DELL's short term assets ($41.1B) do not cover its long term liabilities ($62.4B).


Debt to Equity History and Analysis

Debt Level: DELL's debt to equity ratio (1183.7%) is considered high.

Reducing Debt: DELL's debt to equity ratio has increased from 782% to 1183.7% over the past 5 years.

Debt Coverage: DELL's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: DELL's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Dell Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DELL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DELL'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 DELL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DELL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DELL'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?

3.1yrs

Average management tenure


CEO

Michael Dell (55 yo)

no data

Tenure

US$3,359,058

Compensation

Mr. Michael S. Dell serves as the Founder at MSD Capital, L.P. He has been the Chief Executive Officer at Dell Corporation Limited since 1992. Mr. Dell serves as Chairman and Chief Executive Officer at Del ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD3.36M) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Dell
Chairman & CEOno dataUS$3.36m0.75%
$ 389.2m
Thomas Sweet
Executive VP & CFO6.75yrsUS$7.29m0.00078%
$ 404.8k
Jeffrey Clarke
Chief Operating Officer3.08yrsUS$9.33m0.027%
$ 14.0m
William Scannell
President of Global Sales & Customer Operationsno dataUS$19.94m0.027%
$ 14.0m
Howard Elias
President of Dell Services & Digital2.75yrsUS$12.08m0.049%
$ 25.5m
Brunilda Rios
Senior VP of Corporate Finance & Chief Accounting Officer0.50yrno data0.0011%
$ 560.5k
Karen Litzler-Hollier
Investor Relations Director6.58yrsno datano data
Richard Rothberg
General Counsel & Secretary6.92yrsno data0.0081%
$ 4.2m
Allison Dew
Chief Marketing Officer2.58yrsUS$13.42m0.0060%
$ 3.1m
Michael Zimmerman
Vice President of Corporate Developmentno datano datano data
Steven Price
Chief Human Resources Officer4.08yrsno data0.00045%
$ 233.5k
Maya McReynolds
Senior VP & CFO of Client Solutions Group.0.50yrno data0.0077%
$ 4.0m

3.1yrs

Average Tenure

56yo

Average Age

Experienced Management: DELL's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Dell
Chairman & CEOno dataUS$3.36m0.75%
$ 389.2m
Egon Durban
Director7yrsno datano data
David Dorman
Independent Director4.08yrsUS$300.00k0.0016%
$ 856.3k
William Green
Independent Director4.08yrsUS$300.00k0.0022%
$ 1.2m
Ellen Kullman
Independent Director4.08yrsUS$325.00k0.00079%
$ 410.0k
Simon Patterson
Director7yrsno datano data
Lynn Vojvodich
Independent Director1.5yrsUS$1.32m0%
$ 0

4.1yrs

Average Tenure

55yo

Average Age

Experienced Board: DELL's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DELL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Dell Technologies Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dell Technologies Inc.
  • Ticker: DELL
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$51.897b
  • Shares outstanding: 746.72m
  • Website: https://www.delltechnologies.com

Number of Employees


Location

  • Dell Technologies Inc.
  • One Dell Way
  • Round Rock
  • Texas
  • 78682
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
12DDB (Deutsche Boerse AG)Class V Common StockDEEURAug 2016
DELLNYSE (New York Stock Exchange)YesClass C Common SharesUSUSDDec 2018
DELLWBAG (Wiener Boerse AG)YesClass C Common SharesATEURDec 2018
DELLC *BMV (Bolsa Mexicana de Valores)YesClass C Common SharesMXMXNDec 2018
12DAMUN (Boerse Muenchen)YesClass C Common SharesDEEURDec 2018
12DADB (Deutsche Boerse AG)YesClass C Common SharesDEEURDec 2018
D1EL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLJan 2020

Biography

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and support IT hardware, software, and services solutions worldwide. It operates through three segments: Infrastructure Solutions Gro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:36
End of Day Share Price2020/10/19 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.