Now trading at a price of $66.34, Dell Technologies has moved 0.2% so far today.
Dell Technologies returned gains of 95.0% last year, with its stock price reaching a high of $72.82 and a low of $32.9. Over the same period, the stock outperformed the S&P 500 index by 75.0%. More recently, the company's 50-day average price was $61.95. 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 2.1% dividend yield over the last 12 months.
The Business Has Weak Operating Margins:
| 2019-03-29 | 2020-03-27 | 2021-03-26 | 2022-03-24 | |
|---|---|---|---|---|
| Revenue (MM) | $90,621 | $84,815 | $86,670 | $101,197 |
| Gross Margins | 28.0% | 24.0% | 23.0% | 22.0% |
| Operating Margins | 0% | 3% | 4% | 5% |
| Net Margins | -3.0% | 5.0% | 4.0% | 5.0% |
| Net Income (MM) | -$2,310 | $4,616 | $3,250 | $5,563 |
| Earnings Per Share | -$5.88 | $3.1 | $2.16 | $7.25 |
| EPS Growth | n/a | 152.72% | -30.32% | 235.65% |
| Diluted Shares (MM) | 393 | 1,490 | 1,507 | 767 |
| 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 |
| Long Term Debt (MM) | $49,201 | $44,319 | $32,865 | $21,131 |
| Net Debt / EBITDA | 5.8 | 5.02 | 3.27 | 1.9 |
Dell Technologies has slimmer gross margins than its peers, weak operating margins with a positive growth rate, and a highly leveraged balance sheet. On the other hand, the company has positive EPS growth working in its favor. Furthermore, Dell Technologies has weak revenue growth and a flat capital expenditure trend and irregular cash flows.
Dell Technologies's Valuation Is in Line With Its Sector Averages:
Dell Technologies has a trailing twelve month P/E ratio of 23.8, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $6.8, the company has a forward P/E ratio of 9.1. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 4 years of reported EPS is 9.6%. On this basis, the company's PEG ratio is 2.49, which suggests that it is overpriced.
Dell Technologies Has an Analyst Consensus of Some Upside Potential:
The 14 analysts following Dell Technologies have set target prices ranging from $53.0 to $87.0 per share, for an average of $73.93 with a buy rating. As of April 2023, the company is trading -16.2% 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 3.9% 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 Vanguard Group Inc, whose 7% stake in the company is worth $1,131,568,929.
