Why is DXC Technology Co. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
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)
3
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 -29.31%, its profits have risen by 227.8% ; the PEG ratio of the company is 0
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -29.31% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-31.57%
-0.41
42.02%
S&P 500
13.68%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
-6.93%
EBIT Growth (5y)
29.67%
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
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
5.72%
ROE (avg)
11.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
Price to Book Value
0.64
EV to EBIT
9.93
EV to EBITDA
2.51
EV to Capital Employed
0.78
EV to Sales
0.32
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.87%
ROE (Latest)
15.63%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
5What is working for the Company
ROCE(HY)
Highest at 13.79%
RAW MATERIAL COST(Y)
Fallen by 1.84% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 82.42 %
DEBTORS TURNOVER RATIO(HY)
Highest at 4.48 times
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,324 MM
PRE-TAX PROFIT(Q)
At USD 149 MM has Fallen at -29.13%
Here's what is working for DXC Technology Co.
Debt-Equity Ratio
Lowest at 82.42 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 4.48 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 1.84% (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.
Operating Cash Flow
Lowest at USD 1,324 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Pre-Tax Profit
At USD 149 MM has Fallen at -29.13%
over average net sales of the previous four periods of USD 210.25 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)






