Market Inference Overview -- DELL Stock

Now trading at a price of $71.93, Dell Technologies has moved -5.2% so far today.

Dell Technologies returned gains of 63.0% last year, with its stock price reaching a high of $76.09 and a low of $35.96. Over the same period, the stock outperformed the S&P 500 index by 49.0%. More recently, the company's 50-day average price was $69.85. 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 1.9% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2018 2019 2020 2021 2022 2023
Revenue (MM) $79,040 $90,621 $84,815 $86,670 $101,197 $102,301
Gross Margins 26% 28% 24% 23% 22% 22%
Operating Margins -3% 0% 3% 4% 6% 6%
Net Margins 0% 0% 7% 4% 6% 2%
Net Income (MM) -$77 $129 $5,529 $3,670 $5,707 $2,442
Net Interest Expense (MM) $2,406 -$2,170 -$2,417 -$1,339 $1,264 -$2,546
Depreciation & Amort. (MM) $8,634 $7,746 $6,143 $5,390 $4,551 $3,156
Free Cash Flow (MM) $5,631 $5,494 $6,715 $9,325 $7,511 $562
Capital Expenditures (MM) $1,212 $1,497 $2,576 $2,082 $2,796 $3,003
Net Current Assets (MM) -$61,762 -$77,231 -$73,868 -$64,304 -$49,753 -$49,336
Long Term Debt (MM) $40,507 $52,391 $43,325 $31,699 $20,562 $20,177
Net Debt / EBITDA 4.14 6.82 4.53 1.5 2.14 2.1

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 growing revenues and increasing reinvestment in the business working in its favor. Furthermore, Dell Technologies has positive expected EPS Growth 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 19.3, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $6.83, the company has a forward P/E ratio of 10.2.

Dell Technologies Has an Average Rating of Buy:

The 15 analysts following Dell Technologies have set target prices ranging from $53.0 to $89.0 per share, for an average of $76.4 with a buy rating. As of April 2023, the company is trading -8.6% 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 4.8% 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 $1,219,090,217.

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.