Computer Sciences Stock Analysis (NYSE:CSC)

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$69.07 $1.02 (1.5%) CSC stock closing price Mar 28, 2017 (Closing)
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Computer Sciences
Updated on : Mar 28, 2017
previous close
CSC 69.1 (0%)
NASDAQ 5875.1 (0%)
Closing Price On: Mar 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-14%
Operating Profit
Operating Margin:
-4.3%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
2.92B
Debt/Equity Ratio:
 1.33
Compared to the industry
Cash Flow
Operating cash flow:
$563M
Net Income:
$31M
Dividend Yield
CSC dividend yield:
0.81%
PROS      CONS
Cash Flow
FCF Margin
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CSC PS :
1.3
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-3.6%
Return on Equity:
-4.6%
Free Cash Flow Margin:
20.9%
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Computer Sciences Analysis Video

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View Computer Sciences stock analysis video. This is our CSC analyst opinion covering the buy and sell arguments for CSC stock.

Computer Sciences Corporation Stock Rating (2.3/5)

Our Computer Sciences stock opinion is based on fundamentals of the company. This Computer Sciences stock analysis is based on latest Q3 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy CSC stock?

  • The company has an operating cash flow which is 18.2 times the net income.
  • CSC stock is trading at a favorable price to sales multiple of 1.3 as against the Computer Services industry average multiple of 2.6.
  • Computer Sciences has a healthy FCF (Free Cash Flow) margin of 20.9%.

Should you sell CSC stock?

  • The company saw an average annual sales decline of -14% in sales over the last 5 years.
  • Over the last twelve months, Computer Sciences posted an average operating loss margin of -4.3%.
  • Computer Sciences posted an average Net loss of -1.3% in the last twelve months.
  • Computer Sciences has a debt/equity ratio of  1.33, which is worse than the average in the Computer and Technology sector.
  • The company has a negative Return on Invested Capital of -3.6%, which is a red flag.
  • A negative ROE of -4.6% indicates that the company is not able to generate profits with the money shareholders have invested.

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