DXC

Here Are the Facts You Need to Understand DXC Technology Company (DXC)

DXC Technology Company logged a 2.19% change on Friday, and is now trading at a price of $28.89 per share.

DXC Technology Company shares moved -3.7% over the last 52 weeks, with a high of $36.0 and a low of $22.65. During this time, the stock basically tracked the performance of the S&P 500. As of January 2022, the company's 50-day average price is $28.0.

DXC Technology is an American multinational corporation that provides business-to-business information technology services. The mid-cap Technology company is based in Ashburn, VA. DXC Technology Company has returned a 5.07% dividend yield over the last 12 months.

Higher Operating Margins Than the 6.57% Industry Average:

2019-03-31 2020-03-31 2021-03-31 2022-03-31
Revenue (MM) $20,753 $19,577 $17,729 $16,265
Revenue Growth n/a -5.67% -9.44% -8.26%
Gross Margins 77.83% -30.78% -9.33% 7.03%
Gross Margins Growth n/a -139.55% 69.69% 175.35%
Operating Margins 15.75% 10.53% 6.22% 8.45%
Operating Margins Growth n/a -33.14% -40.93% 35.85%
Earnings Per Share $4.68 -$21.17 -$0.59 $2.96
EPS Growth n/a -552.35% 97.21% 601.69%
Diluted Shares (MM) 269 254 254 243
Free Cash Flow (MM) $831 $1,484 -$652 $743
FCF Growth n/a 78.58% -143.94% 213.96%
Capital Expenditures (MM) $952 $866 $776 $758
Net Debt / EBITDA 1.17 -1.79 0.55 0.54

DXC Technology Company Is Currently Under Priced:

Compared to the Technology sector's average of 27.16, DXC Technology Company has a trailing twelve month P/E ratio of 9.63 and, according to its EPS guidance of 4.0, an expected P/E ratio of 7.22.

However, DXC Technology Company is likely undervalued in terms of its equity because its P/B ratio is 1.361 compared to its sector average of 6.23. The company's shares are now trading -21.41% below their Graham number, implying there is a margin of safety for the stock. We calculate the number according to this formula:

√(22.5 * EPS * book value per share) = √(22.5 * 2.96 * 20.29) = $36.76

DXC Technology Company Is the Subject of Mixed Market Indicators:

13 analysts are following DXC Technology Company and have set target prices ranging from $27.0 to $38.0 per share. On average, they have given the company a rating of hold. At the current price of $28.89, DXC is trading -10.36% away from its average analyst target price of $32.23 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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