Dell Technologies Inc. (DELL) stock analysis

P/E above its 5-year median

Dell Technologies's P/E of 20.0 is above its own 5-year median of 20.0.

P/E below the industry

Dell Technologies's P/E of 20.0 is below the Computer and Office Equipment median of 25.3.

EV/EBITDA above its 5-year median

Dell Technologies's EV/EBITDA of 14.0 is above its 5-year median of 9.9.

P/S below the industry

Dell Technologies's price-to-sales of 1.45 is below the Computer and Office Equipment median of 2.27 (book value is negative, so we use sales).

Trading below fair value

The share price of $344.53 is below our fair value estimate of $381.11.

Margin of safety under 20%

The price is 9.6% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 38.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 135% over the last twelve months, against a 5-year average of 12.8% a year.

Growing faster than the industry

Revenue grew 49.0% over the last twelve months; the Computer and Office Equipment median is 11.3%.

Guidance raised

Dell Technologies raised its FY27 Updated Revenue outlook on Sep 1, 2026.

Gross margin slipping

Gross margin was 19.8% over the last twelve months, against 21.1% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 59.8%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 12.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.5% over the last twelve months, against a 5-year average of 4.3%.

Net margin above the industry

Dell Technologies's net margin of 7.5% is above the Computer and Office Equipment median of 4.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 35.3% of total debt.

Interest well covered

Operating income covers interest expense 8.9 times.

Short-term assets don't cover short-term debts

Current assets are 0.96 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.66; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Dell Technologies paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Dell Technologies yields 0.5%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 13.8% of net income.

Covered by free cash flow

Dividends take 18.3% of free cash flow.