DXC Technology Co. (DXC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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DXC Technology Co.

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Zscaler, Inc.

MSCI, Inc.

Jacobs Solutions, Inc.

Dropbox, Inc.

Why is DXC Technology Co. ?

Company has a low Debt to Equity ratio (avg) at times

The company declared very positive results in Mar'25 after flat results in Dec'24

NET PROFIT(HY) Higher at USD 344.4 MM
ROCE(HY) Highest at 12.6%
RAW MATERIAL COST(Y) Fallen by -26.77% (YoY)

With ROCE of 9.12%, it has a attractive valuation with a 0.94 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of -37.87%, its profits have risen by 227.8% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.87% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DXC Technology Co. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DXC Technology Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DXC Technology Co.

-37.87%

-0.58

41.74%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.79%

EBIT Growth (5y)

-3.17%

EBIT to Interest (avg)

1.43

Debt to EBITDA (avg)

1.29

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

1.85

Tax Ratio

37.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.72%

ROE (avg)

11.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.90

EV to EBIT

10.29

EV to EBITDA

2.80

EV to Capital Employed

0.94

EV to Sales

0.39

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

9.12%

ROE (Latest)

15.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(HY)

Higher at USD 344.4 MM

ROCE(HY)

Highest at 12.6%

RAW MATERIAL COST(Y)

Fallen by -26.77% (YoY

-10What is not working for the Company

NET PROFIT(Q)

At USD 40.72 MM has Fallen at -66.18%

OPERATING CASH FLOW(Y)

Lowest at USD 1,346 MM

NET SALES(Q)

Lowest at USD 3,159 MM

OPERATING PROFIT(Q)

Lowest at USD 383 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.12 %

PRE-TAX PROFIT(Q)

At USD 159 MM has Fallen at -20.5%

EPS(Q)

Lowest at USD 0.09

Here's what is working for DXC Technology Co.

Raw Material Cost

Fallen by -26.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for DXC Technology Co.

Net Profit

At USD 40.72 MM has Fallen at -66.18%

over average net sales of the previous four periods of USD 120.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 1,346 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 3,159 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 383 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 12.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At USD 159 MM has Fallen at -20.5%

over average net sales of the previous four periods of USD 200 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Non Operating Income

Highest at USD 2.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income