Dell Technologies Inc.

DELL

Electronic Computers

Mkt Cap

$119B

PE

37.24

Debt

$33.2B

Cash

$7.507B

EV

$144.7B

FCF

$5.92B

Market Cap

$119B

P/E Ratio

37.24

Debt

$33.2B

Cash

$7.507B

EV

$144.7B

FCF

$5.92B

Charts data: {"Earnings":[{"time":"2015-01-29","value":-1221000000},{"time":"2016-01-28","value":-1104000000},{"time":"2017-02-02","value":-1718000000},{"time":"2018-02-01","value":-3855000000},{"time":"2019-01-31","value":-2310000000},{"time":"2020-01-30","value":4616000000},{"time":"2021-01-28","value":3250000000},{"time":"2022-01-27","value":4948000000},{"time":"2023-02-02","value":2422000000},{"time":"2024-02-01","value":3195000000}],"Sales":[{"time":"2015-01-29","value":54142000000},{"time":"2016-01-28","value":50911000000},{"time":"2017-02-02","value":62164000000},{"time":"2018-02-01","value":79040000000},{"time":"2019-01-31","value":90621000000},{"time":"2020-01-30","value":92154000000},{"time":"2021-01-28","value":94224000000},{"time":"2022-01-27","value":101197000000},{"time":"2023-02-02","value":102301000000},{"time":"2024-02-01","value":88425000000}],"Net Margins":[{"time":"2015-01-29","value":-0.02255180820804551},{"time":"2016-01-28","value":-0.021684901101922963},{"time":"2017-02-02","value":-0.027636574223022972},{"time":"2018-02-01","value":-0.04877277327935223},{"time":"2019-01-31","value":-0.025490780282715928},{"time":"2020-01-30","value":0.050090066627601626},{"time":"2021-01-28","value":0.03449227373068433},{"time":"2022-01-27","value":0.04889473008093125},{"time":"2023-02-02","value":0.023675232891174083},{"time":"2024-02-01","value":0.036132315521628496}],"Assets":[{"time":"2016-01-28","value":45122000000},{"time":"2017-02-02","value":118206000000},{"time":"2018-02-01","value":122281000000},{"time":"2019-01-31","value":111820000000},{"time":"2020-01-30","value":118861000000},{"time":"2021-01-28","value":123415000000},{"time":"2022-01-27","value":92735000000},{"time":"2023-02-02","value":89611000000},{"time":"2024-02-01","value":82089000000}],"Stockholders Equity":[{"time":"2015-01-29","value":2904000000},{"time":"2016-01-28","value":1466000000},{"time":"2017-02-02","value":19009000000},{"time":"2018-02-01","value":14987000000},{"time":"2019-01-31","value":-942000000},{"time":"2020-01-30","value":3155000000},{"time":"2021-01-28","value":7553000000},{"time":"2022-01-27","value":-1580000000},{"time":"2023-02-02","value":-3025000000},{"time":"2024-02-01","value":-2309000000}],"ROE":[{"time":"2015-01-29","value":-0.42045454545454547},{"time":"2016-01-28","value":-0.7530695770804912},{"time":"2017-02-02","value":-0.09037824188542269},{"time":"2018-02-01","value":-0.2572229265363315},{"time":"2019-01-31","value":2.4522292993630574},{"time":"2020-01-30","value":1.4630744849445325},{"time":"2021-01-28","value":0.43029259896729777},{"time":"2022-01-27","value":-3.131645569620253},{"time":"2023-02-02","value":-0.8006611570247933},{"time":"2024-02-01","value":-1.3837158943265482}],"ROA":[{"time":"2016-01-28","value":-0.011391339036390231},{"time":"2017-02-02","value":-0.027511293842952134},{"time":"2018-02-01","value":-0.027256891912889165},{"time":"2019-01-31","value":-0.0017081023072795564},{"time":"2020-01-30","value":0.022059380284534035},{"time":"2021-01-28","value":0.04168050885224649},{"time":"2022-01-27","value":0.06387016768210492},{"time":"2023-02-02","value":0.06440057582216469},{"time":"2024-02-01","value":0.06347988159193071}]}

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides traditional and next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and rack, blade, tower, and hyperscale servers. This segment also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; attached software and peripherals; and support and deployment, configuration, and extended warranty services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, and other electronics; and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services. The company is also involved in the provision of cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and infrastructure-as-a-service solutions, as well as in the resale of VMware products and services. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

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DCF

Discounted Cash Flow Valuation of Dell Technologies Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$5.92B	$6.394B	$6.885B	$7.39B	$7.908B	$8.436B	$8.97B	$9.509B	$10.05B	$10.58B	$11.11B	$111.1B
DCF		$5.56B	$5.206B	$4.859B	$4.521B	$4.194B	$3.878B	$3.575B	$3.285B	$3.008B	$2.747B	$27.47B
Value	$68.3B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 15%

Earnings Stability -42%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	01-2016	02-2017	02-2018	01-2019	01-2020	01-2021	01-2022	02-2023	02-2024	TTM
Net Margin	-2.2%	-2.8%	-4.9%	-2.5%	5%	3.4%	4.9%	2.4%	3.6%	3.6%
ROA	-1.1%	-2.8%	-2.7%	-0.17%	2.2%	4.2%	6.4%	6.4%	6.3%	6.3%
ROE	-75%	-9%	-26%	250%	150%	43%	-310%	-80%	-140%	-140%

What is the average Net Margin?

The average Net Margin over the past 5 years is +2.8%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.7%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.23%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.36%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -16.17%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -84.38%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	01-2016	02-2017	02-2018	01-2019	01-2020	01-2021	01-2022	02-2023	02-2024	TTM
Debt FCF	10.10	37.22	10.82	10.04	8.57	5.88	4.40	64.84	5.61	5.61
Debt Equity	11.57	2.98	4.04	-62.16	19.14	7.26	-20.92	-12.05	-14.38	-14.38
MIN
Graham Stability	-	-	-	-	-	-	100%	57%	90%	57%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.61.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 4.15.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.57.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	02-2017	01-2019	01-2021	02-2023	Trend
Revenue	5.2%	-0.49%	-2.1%	-14%	-2.4%
Net Income	-	-	-0.57%	32%	8.1%
Stockholders Equity	-	-	-	-	-49%
FCF	21%	0.3%	-14%	950%	52%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -0.49%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.42%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +8.12%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +19.64%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -48.53%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +0.3%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +51.56%.