DXC TECHNOLOGY Stock Analysis, Valuation (NYSE:DXC)
DXC TECHNOLOGY Stock Analysis
Take a look at Amigobulls DXC TECHNOLOGY stock analysis video. This is our analyst opinion covering the buy and sell arguments for DXC stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
DXC TECHNOLOGY Stock Rating 3.5/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DXC stock analysis. DXC TECHNOLOGY valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our DXC TECHNOLOGY stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy DXC stock?
- DXC stock is trading at an earnings multiple of 15.5 which is better than the industry average of 26.
- The lower PS ratio 1.5 for DXC stock versus Computer Services industry average of 3 is a positive for the company.
- DXC TECHNOLOGY has an attractive ROIC (Return on Invested Capital) of 7.2%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for DXC TECHNOLOGY at 12.3%.
- DXC TECHNOLOGY has a healthy FCF (Free Cash Flow) margin of 14.3%.
Should you sell DXC stock?
- Long term revenue growth of 5.1% over the past 5 years has been disappointing.
- DXC TECHNOLOGY has a debt/equity ratio of 0.65, which is worse than the average in the Computer and Technology sector.
Investors can make use of the Amigobulls DXC TECHNOLOGY stock analysis to ascertain how DXC stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
DXC TECHNOLOGY revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about DXC stock.