Dell Technologies logged a -2.0% change during today's evening session, and is now trading at a price of $52.61 per share.
Dell Technologies returned gains of 1919.7% last year, with its stock price reaching a high of $56.1 and a low of $32.9. Over the same period, the stock outperformed the S&P 500 index by 934.0%. More recently, the company's 50-day average price was $50.6. Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. Based in Round Rock, TX, the large-cap Technology company has 133,000 full time employees. Dell Technologies has offered a 2.5% dividend yield over the last 12 months.
Stable Revenues With Increasing Reinvestment in the Business:
| 2019-03-29 | 2020-03-27 | 2021-03-26 | 2022-03-24 | |
|---|---|---|---|---|
| Revenue (MM) | $90,621 | $84,815 | $86,670 | $101,197 |
| Gross Margins | 27.6% | 24.3% | 23.2% | 21.6% |
| Operating Margins | -0.2% | 2.8% | 4.2% | 4.6% |
| Net Margins | -2.55% | 5.44% | 3.75% | 5.5% |
| Net Income (MM) | -$2,310 | $4,616 | $3,250 | $5,563 |
| Net Interest Expense (MM) | -$2,170 | n/a | n/a | n/a |
| Depreciation & Amort. (MM) | -$7,746 | -$6,143 | -$5,390 | -$4,551 |
| Earnings Per Share | -$5.88 | $3.1 | $2.16 | $2.64 |
| EPS Growth | n/a | 152.72% | -30.32% | 22.22% |
| Diluted Shares (MM) | 393 | 1,490 | 1,507 | 258 |
| Free Cash Flow (MM) | $8,488 | $11,867 | $13,489 | $13,103 |
| Capital Expenditures (MM) | -$1,497 | -$2,576 | -$2,082 | -$2,796 |
| Net Current Assets (MM) | -$75,428 | -$78,209 | -$71,823 | -$49,282 |
| Current Ratio | 0.8 | 0.7 | 0.8 | 0.8 |
| Long Term Debt (MM) | $49,201 | $44,319 | $32,865 | $21,131 |
| LT Debt to Equity | 193.7 | 11.71 | 4.1 | -13.37 |
Dell Technologies has stable revenues and increasing reinvestment in the business, a steady stream of strong cash flows, and positive EPS growth. However, the firm suffers from slimmer gross margins than its peers and weak operating margins with a positive growth rate.
Dell Technologies's Valuation Is in Line With Its Sector Averages:
Dell Technologies has a trailing twelve month P/E ratio of 19.2, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $6.13, the company has a forward P/E ratio of 8.3. According to the 15.4% compound average growth rate of Dell Technologies's historical and projected earnings per share, the company's PEG ratio is 1.25. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 9.7%. On this basis, the company's PEG ratio is 1.99. This suggests that these shares are overvalued.
Analysts Give Dell Technologies an Average Rating of Buy:
The 17 analysts following Dell Technologies have set target prices ranging from $45.0 to $61.0 per share, for an average of $54.89 with a buy rating. As of April 2023, the company is trading -7.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Dell Technologies has an average amount of shares sold short because 2.5% of the company's shares are sold short. Institutions own 77.1% of the company's shares, and the insider ownership rate stands at 3.32%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 8% stake in the company is worth $1,041,065,210.
