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DXC Technology Co (DXC)

Upturn stock ratingUpturn stock rating
$21.32
Delayed price
Profit since last BUY-6.5%
upturn advisory
SELL
SELL since 3 days
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Upturn Advisory Summary

02/18/2025: DXC (1-star) is a SELL. SELL since 3 days. Profits (-6.50%). Updated daily EoD!

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type Stock
Historic Profit -59.48%
Avg. Invested days 30
Today’s Advisory SELL
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/18/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.69B USD
Price to earnings Ratio -
1Y Target Price 23.56
Price to earnings Ratio -
1Y Target Price 23.56
Volume (30-day avg) 1060137
Beta 1.67
52 Weeks Range 14.79 - 24.83
Updated Date 02/18/2025
52 Weeks Range 14.79 - 24.83
Updated Date 02/18/2025
Dividends yield (FY) -
Basic EPS (TTM) -0.3

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-01-30
When Before Market
Estimate 0.7721
Actual 0.92

Profitability

Profit Margin -0.57%
Operating Margin (TTM) 6.02%

Management Effectiveness

Return on Assets (TTM) 1.13%
Return on Equity (TTM) -1.87%

Valuation

Trailing PE -
Forward PE 5.58
Enterprise Value 6465959187
Price to Sales(TTM) 0.28
Enterprise Value 6465959187
Price to Sales(TTM) 0.28
Enterprise Value to Revenue 0.49
Enterprise Value to EBITDA 4
Shares Outstanding 181048992
Shares Floating 179448092
Shares Outstanding 181048992
Shares Floating 179448092
Percent Insiders 1.13
Percent Institutions 95.36

AI Summary

DXC Technology Co.: A Comprehensive Overview

Company Profile:

History and Background:

DXC Technology Co. (DXC) is a global IT services and consulting company formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise (HPE). DXC has a rich heritage, tracing its roots back to 1959 with the founding of CSC.

Core Business Areas:

DXC offers a wide range of IT services and solutions across various industries, including:

  • Application Services: Application development, maintenance, and modernization.
  • Cloud Services: Public, private, and hybrid cloud solutions.
  • Cybersecurity Services: Security assessments, threat detection, and incident response.
  • Data Analytics and AI: Data warehousing, analytics, and artificial intelligence solutions.
  • Digital Workplace Services: End-user computing, collaboration, and mobility solutions.
  • Infrastructure Services: IT infrastructure management, outsourcing, and data center services.

Leadership and Corporate Structure:

Mike Lawrie serves as DXC's President and CEO, leading a team of experienced executives responsible for driving the company's strategy and operations. The company is headquartered in Tysons, Virginia, and operates in over 70 countries with approximately 130,000 employees.

Top Products and Market Share:

Top Products:

  • DXC Platform X: A cloud-native platform for data analytics, AI, and application development.
  • DXC IntelliOps: AIOps platform for IT operations management.
  • DXC cybersecurity solutions: End-to-end cybersecurity services to protect against cyber threats.
  • DXC cloud solutions: Public, private, and hybrid cloud solutions for various business needs.
  • DXC application services: Development, maintenance, and modernization of mission-critical applications.

Market Share:

DXC holds significant market share in several IT services segments. For example, it is a leader in application services and infrastructure management. According to IDC, DXC was ranked as the fourth-largest IT services provider globally in 2022, with a market share of approximately 3.2%.

Total Addressable Market:

The global IT services market is vast and growing, expected to reach over $1.25 trillion by 2025. DXC operates in several high-growth segments within this market, including cloud services, cybersecurity, and data analytics.

Financial Performance:

Recent Financial Statements:

DXC's fiscal year ends in March. For the fiscal year 2023, the company reported revenue of $14.6 billion, net income of $1.4 billion, and earnings per share (EPS) of $2.72. Compared to the previous year, revenue remained relatively flat, while net income and EPS declined by 15% and 14%, respectively.

Cash Flow and Balance Sheet:

DXC's cash flow from operations was $1.8 billion in FY2023, down from $2.1 billion in FY2022. The company's total debt stood at $6.7 billion as of March 31, 2023, with a debt-to-equity ratio of 1.1.

Dividends and Shareholder Returns:

DXC has a history of paying dividends, but the company suspended its dividend program in 2020 due to the COVID-19 pandemic. As of November 2023, there is no indication of when or if the company will resume dividend payments.

Historical Growth and Future Projections:

DXC has experienced modest growth over the past few years. The company projects revenue growth of 1-3% in FY2024. However, analysts are mixed on the company's future prospects, with some citing concerns about slowing growth and declining profitability.

Market Dynamics:

The IT services industry is highly competitive and subject to rapid technological advancements. Key trends include the shift to cloud computing, the increasing adoption of artificial intelligence (AI), and the growing importance of cybersecurity. DXC is well-positioned to capitalize on these trends with its comprehensive portfolio of services and solutions.

Competitors:

DXC faces stiff competition from several major IT services providers, including:

  • Accenture (ACN)
  • IBM (IBM)
  • Infosys (INFY)
  • Cognizant (CTSH)
  • Wipro (WIT)

These competitors have a similar range of services and solutions, and they compete aggressively for market share.

Potential Challenges and Opportunities:

Key Challenges:

  • Slowing growth: DXC needs to accelerate its growth rate to compete effectively in the IT services market.
  • Margin pressure: The company faces intense competition, which puts pressure on its margins.
  • Integration challenges: Integrating the CSC and HPE businesses has been a complex process, and there are still ongoing integration challenges.

Potential Opportunities:

  • Cloud computing: DXC has a strong opportunity to grow its cloud services business, which is a high-growth market.
  • AI and data analytics: The company can leverage its expertise in AI and data analytics to develop innovative solutions for its clients.
  • Mergers and acquisitions: DXC could pursue strategic acquisitions to expand its capabilities and market reach.

Recent Acquisitions (last 3 years):

  • Luxoft (2019): This acquisition strengthened DXC's capabilities in digital engineering and software development.
  • Software Engineering Services of Molina Healthcare (2023): This acquisition expanded DXC's presence in the healthcare industry.

AI-Based Fundamental Rating:

Based on an AI-powered fundamental analysis system, DXC Technology receives a rating of 6 out of 10. The system considers various factors such as financial health, market position, and growth prospects. While the company has a solid market position and a broad range of services, concerns about its declining profitability and slowing growth weigh on its overall rating.

Sources and Disclaimers:

Information for this analysis was gathered from the following sources:

  • DXC Technology website
  • SEC filings
  • Investor relations presentations
  • Industry reports

This overview is intended for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.

About DXC Technology Co

Exchange NYSE
Headquaters Ashburn, VA, United States
IPO Launch date 2017-02-01
President, CEO & Director Mr. Raul J. Fernandez
Sector Technology
Industry Information Technology Services
Full time employees 130000
Full time employees 130000

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain insights, automate operations, and accelerate their transformation journeys; and software engineering, consulting, and data analytics solutions, which enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. This segment also simplifies, modernize, and accelerate mission-critical applications that support business agility and growth through applications services; provides proprietary modular insurance software and platforms; and operates a wide spectrum of insurance business process services, as well as helps to operate and improve bank cards, payment and lending process and operations, and customer experiences. The GIS segment offers security services, such as IT security, operations and culture for migrating to the cloud, protecting data with a zero-trust strategy, and manage a security operation center; and cloud infrastructure and IT outsourcing services. This segment also delivers a consumer-like experience, centralize IT management, and support services, as well as improves the total cost of ownership; and orchestrates hybrid cloud and multicloud environments. The company markets and sells its products through direct sales force to commercial businesses and public sector enterprises. DXC Technology Company was founded in 1959 and is headquartered in Ashburn, Virginia.

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