(DXC) DXC Technology - NYSE
Sector: Technology | Industry: Information Technology Services | Exchange: NYSE (USA) | Market Cap: 1.394m USD | Total Return: -42% in 12m
Avg Turnover: 42.9M
EPS Trend: 11.2%
Qual. Beats: 3
Rev. Trend: -90.3%
Qual. Beats: 0
Warnings
P/E ratio 86.0
Altman Z'' 0.43 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
DXC Technology is a U.S.-based IT services provider founded in 1959 and headquartered in Ashburn, Virginia, operating through three segments: Consulting & Engineering Services, Global Infrastructure Services, and Insurance Software & Services. The consulting arm delivers software engineering, custom application development, and advisory work, with emphasis on AI and data analytics for clients in finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector. The infrastructure segment manages data centers, mainframes, cloud environments, and networks, while the insurance software unit provides platforms and processing services to life, wealth, property and casualty, and reinsurance carriers.
The company sells through a direct sales force to commercial and government customers across the United States, the United Kingdom, continental Europe, Australia, and other international markets. As a systems integrator and managed services provider, DXC typically earns revenue through multi-year outsourcing contracts and software licensing arrangements, a business model that produces recurring but generally lower-margin income than pure software vendors and ties results closely to enterprise IT spending cycles.
- Insurance Software segment recurring revenue supports margin expansion
- AI consulting bookings accelerate across enterprise and public sector
- Legacy infrastructure contract exits pressure total revenue growth
| Net Income: 18.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 0.14 > 1.0 |
| NWC/Revenue: 11.25% < 20% (prev 7.40%; Δ 3.86% < -1%) |
| CFO/TA 0.10 > 3% & CFO 1.25b > Net Income 18.0m |
| Net Debt (3.38b) to EBITDA (1.42b): 2.38 < 3 |
| Current Ratio: 1.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (178.7m) vs 12m ago -3.35% < -2% |
| Gross Margin: 14.80% > 18% (prev 24.09%; Δ -9.30% > 0.5%) |
| Asset Turnover: 96.91% > 50% (prev 97.47%; Δ -0.56% > 0%) |
| Interest Coverage Ratio: 1.19 > 6 (EBIT TTM 258.0m / Interest Expense TTM 216.0m) |
| A: 0.11 (Total Current Assets 5.36b - Total Current Liabilities 3.94b) / Total Assets 12.9b |
| B: -0.23 (Retained Earnings -2.94b / Total Assets 12.9b) |
| C: 0.02 (EBIT TTM 258.0m / Avg Total Assets 13.0b) |
| D: 0.30 (Book Value of Equity 2.94b / Total Liabilities 9.68b) |
| Altman-Z'' = 0.43 = B |
| DSRI: 1.02 (Receivables 2.97b/2.97b, Revenue 12.6b/12.9b) |
| GMI: 1.63 (GM 24.09% / 14.80%) |
| AQI: 0.99 (AQ_t 0.45 / AQ_t-1 0.45) |
| SGI: 0.98 (Revenue 12.6b / 12.9b) |
| TATA: -0.10 (NI 18.0m - CFO 1.25b) / TA 12.9b) |
| Beneish M = -2.47 (Cap -4..+1) = BBB |
As of June 28, 2026, the stock is trading at USD 8.82 with a total of 5,044,172 shares traded. Over the past week, the price has changed by +2.56%, over one month by -4.65%, over three months by -27.65% and over the past year by -41.97%.
Current recommended Stop Loss: 8.00 (which is 9.3% or 1.5 ATR below the current price).
DXC Technology has received a consensus analysts rating of 2.70. Therefore, it is recommended to hold DXC.
- StrongBuy: 0
- Buy: 0
- Hold: 8
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 11.4 | 29.6% |
P/E Trailing = 86.0
P/E Forward = 3.4819
P/S = 0.1102
P/B = 0.474
P/EG = 0.4907
Revenue TTM = 12.6b USD
EBIT TTM = 258.0m USD
EBITDA TTM = 1.42b USD
Long Term Debt = 2.95b USD (from longTermDebt, last quarter)
Short Term Debt = 752.0m USD (from shortTermDebt, last quarter)
Debt = 5.12b USD (from shortLongTermDebtTotal, last quarter) + Leases 869.0m
Net Debt = 3.38b USD (calculated: Debt 5.12b - CCE 1.74b)
Enterprise Value = 4.77b USD (1.39b + Debt 5.12b - CCE 1.74b)
Interest Coverage Ratio = 1.19 (Ebit TTM 258.0m / Interest Expense TTM 216.0m)
EV/FCF = 4.61x (Enterprise Value 4.77b / FCF TTM 1.04b)
FCF Yield = 21.71% (FCF TTM 1.04b / Enterprise Value 4.77b)
FCF Margin = 8.19% (FCF TTM 1.04b / Revenue TTM 12.6b)
Net Margin = 0.14% (Net Income TTM 18.0m / Revenue TTM 12.6b)
Gross Margin = 14.80% ((Revenue TTM 12.6b - Cost of Revenue TTM 10.8b) / Revenue TTM)
Gross Margin QoQ = -4.54% (prev 23.76%)
Tobins Q-Ratio = 0.37 (Enterprise Value 4.77b / Total Assets 12.9b)
Interest Expense / Debt = 4.22% (Interest Expense 216.0m / Debt 5.12b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 203.8m (EBIT 258.0m * (1 - 21.00%))
Current Ratio = 1.36 (Total Current Assets 5.36b / Total Current Liabilities 3.94b)
Debt / Equity = 1.74 (Debt 5.12b / totalStockholderEquity, last quarter 2.94b)
Debt / EBITDA = 2.38 (Net Debt 3.38b / EBITDA 1.42b)
Debt / FCF = 3.26 (Net Debt 3.38b / FCF TTM 1.04b)
Total Stockholder Equity = 3.08b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.14% (Net Income 18.0m / Total Assets 12.9b)
RoE = 0.58% (Net Income TTM 18.0m / Total Stockholder Equity 3.08b)
RoCE = 4.28% (EBIT 258.0m / Capital Employed (Equity 3.08b + L.T.Debt 2.95b))
RoIC = 2.25% (NOPAT 203.8m / Invested Capital 9.07b)
WACC = 4.81% (E(1.39b)/V(6.51b) * Re(10.24%) + D(5.12b)/V(6.51b) * Rd(4.22%) * (1-Tc(0.21)))
Discount Rate = 10.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -28.89 | Cagr: -3.14%
[DCF] Terminal Value 75.35% ; FCFF base≈1.04b ; Y1≈1.04b ; Y5≈1.09b
[DCF] Fair Price = 83.54 (EV 16.9b - Net Debt 3.38b = Equity 13.5b / Shares 162.1m; r=8.35% [WACC [floored]]; 5y FCF grow -0.67% → 2.50% )
EPS Correlation: 11.18 | EPS CAGR: 0.43% | SUE: 1.45 | # QB: 3
Revenue Correlation: -90.34 | Revenue CAGR: -3.60% | SUE: -0.53 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.45 | Chg30d=+8.54% | Revisions=-60% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.71 | Chg30d=-0.61% | Revisions=-56% | Analysts=8
EPS current Year (2027-03-31): EPS=2.57 | Chg30d=-1.52% | Revisions=-64% | GrowthEPS=-20.5% | GrowthRev=-3.7%
EPS next Year (2028-03-31): EPS=3.08 | Chg30d=+1.40% | Revisions=-33% | GrowthEPS=+19.9% | GrowthRev=-1.3%
[Analyst] Revisions Ratio: -64%