DXC TECHNOLOGY Stock Analysis, Valuation (NYSE:DXC)

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$100.23 $0.32 (0.32%) DXC stock closing price May 18, 2018 (Closing)
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DXC TECHNOLOGY
Updated on : May 18, 2018
previous close
DXC 100.2 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
5.1%
Operating Profit
Operating Margin:
8.3%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.54B
Debt/Equity Ratio:
 0.65
Compared to the industry
Cash Flow
Operating cash flow:
$999M
Net Income:
$776M
Dividend Yield
DXC dividend yield:
0.68%
PROS      CONS
ROIC
ROE
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DXC PS :
1.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.2%
Return on Equity:
12.3%
Free Cash Flow Margin:
14.3%
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DXC TECHNOLOGY Stock Analysis

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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?

  • The price to earnings multiple of 14.7 is attractive when compared with the industry average PE ratio of 25.1.
  • DXC stock is trading at a favorable price to sales multiple of 1.4 as against the Computer Services industry average multiple of 2.9.
  • DXC TECHNOLOGY's return on invested capital of 7.2% is good.
  • DXC TECHNOLOGY has a good Return On Equity (ROE) of 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 is debt laden and has a high debt/equity ratio of  0.65.

Comments on this video and DXC TECHNOLOGY stock

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.