DXC Technology Co (DXC) stock analysis
Close on Nov 11, 2026Market cap $2.37BP/E 22.5Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
DXC Technology passes 11 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 84.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $15.27 is below our fair value estimate of $98.69.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.1% of total debt.
P/E below the industry
DXC Technology's P/E of 22.5 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
What to watch
Return on equity under 15%
Return on equity was 3.7% over the last twelve months and averaged 3.5% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 8.6%, below the 10% that usually covers the cost of capital.
High debt
Debt is 100% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew -4.3% a year over the last three fiscal years, short of the 10% we look for.
Valuation5/6
P/E above its 5-year median
DXC Technology's P/E of 22.5 is above its own 5-year median of 11.7.
P/E below the industry
DXC Technology's P/E of 22.5 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
DXC Technology's EV/EBITDA of 2.1 is below its 5-year median of 2.9.
P/B below the industry
DXC Technology's price-to-book of 0.78 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $15.27 is below our fair value estimate of $98.69.
Margin of safety over 20%
The price is 84.5% below fair value, more than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew -4.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -2.8% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance lowered
DXC Technology lowered its Full Year Fiscal 2027 Total revenue outlook on Jul 30, 2026.
Gross margin slipping
Gross margin was 22.3% over the last twelve months, against 24.6% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 3.7% over the last twelve months and averaged 3.5% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 8.6%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
DXC Technology's return on equity of 3.7% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 0.9% over the last twelve months, against a 5-year average of 0.9%.
Net margin above the industry
DXC Technology's net margin of 0.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health3/6
High debt
Debt is 100% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 111% five years ago to 100%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.1% of total debt.
Interest not well covered
Operating income covers interest expense 3.8 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.15 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.19; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
DXC Technology has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$98.69
The share price is 85% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/Eleft out, too far from the others | 19.6× | 11.7× | 27.6× | $13.31 | – |
| EV/EBITDA | 10.8× | 2.9× | 18.8× | $126.88 | 58% |
| P/B | 2.3× | 1.3× | 3.3× | $45.67 | 17% |
| Earnings power | 10.6% cost of equity | – | – | $68.27 | 25% |
| Fair value | $98.69 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 11.7
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $70.15M
- Value traded per 1% price move
- $15.63M
Downside
High risk
- Typical loss in a bad month
- 29.0%
- Volatility (annualized)
- 58%
- Sharpe ratio, 1 year
- 0.15
- Beta to the S&P 500 (5Y)
- 1.14
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2016 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -1.8% | -4.3% | -6.5% | +5.9% | |
| Gross profit | -2.3% | -1.6% | -3.6% | +4.7% | |
| Operating income | -4.8% | -5.1% | -2.5% | +9.1% | |
| Net income | -95.4% | – | – | -23.2% | |
| EPS, diluted | -95.2% | – | – | -25.0% | |
| Free cash flow | -9.9% | -3.4% | – | +8.8% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | – | -3.1% | 0.6% | |
| Return on assets | -1.5% | -0.6% | 0.1% | |
| Current ratio | 1.10 | 1.01 | 1.36 | |
| Debt to equity | 1.57 | 1.11 | 1.21 | |
| Net debt to EBITDA | 1.33× | 0.82× | 0.84× | |
| Interest coverage | 5.3× | 3.1× | 4.5× | |
| Capex to revenue | 3.2% | 1.5% | 1.7% | |
| Diluted shares | 140M | 254M | 179M |
Where the cash went
Fiscal 2022 to 2026, five years combined
DXC Technology generated $6.92B from operations and spent $3.62B on capital expenditure, dividends and share buybacks. 32% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 0.1% | 0.97× | 4.23× | 0.6% |
| FY2025 | 3.0% | 0.95× | 4.48× | 12.9% |
| FY2024 | 0.7% | 0.92× | 4.71× | 2.9% |
| FY2023 | -3.9% | 0.80× | 4.21× | -13.3% |
| FY2022 | 4.4% | 0.77× | 4.21× | 14.3% |
| FY2021 | -0.8% | 0.74× | 4.92× | -3.1% |
| FY2020 | -27.4% | 0.70× | 3.43× | -66.3% |
| FY2019 | 6.1% | 0.65× | 2.55× | 10.1% |
| FY2018 | 8.1% | 1.02× | 2.77× | 22.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$18.00M
- Cash generatingOperating cash flow above zero$1.25B
- Return on assets improvedROA up on the prior year2.8% → 0.1%
- Earnings backed by cashOperating cash flow above net income$1.25B vs $18.00M
- Less leverageLong-term debt to assets fell22.7% → 23.5%
- Better liquidityCurrent ratio rose1.22 → 1.36
- No dilutionShare count did not rise185M → 179M
- Gross margin improvedGross margin up on the prior year24.09% → 23.97%
- More efficientAsset turnover rose0.93 → 0.96
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