Services-Computer Processing & Data Preparation
DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. It also simplifies, modernize, and accelerate mission-critical applications that support business agility and growth through applications services. In addition, this segment provides proprietary modular insurance software and platforms; and operates spectrum of insurance business process services, as well as operates bank cards, payment and lending process, and customer experiences. The GIS segment provides security services, such as IT security, operations and culture for the cloud, protecting data with a zero-trust strategy, and manage a security operation center; and cloud infrastructure and IT outsourcing services. It also delivers a consumer-like experience, centralize IT management, and support services, as well as improve the total cost of ownership. In addition, it markets and sells its products through direct sales force to commercial businesses and public sector enterprises. DXC Technology Company was founded in 1959 and is headquartered in Ashburn, Virginia.
Discounted Cash Flow Valuation of Dxc Technology Co
Growth
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Discount
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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 | $1.179B | $1.09B | $1.008B | $931.5M | $861.2M | $796.2M | $736M | $680.4M | $629.1M | $581.6M | $537.6M | $5.376B |
DCF | $947.8M | $761.9M | $612.5M | $492.4M | $395.8M | $318.2M | $255.8M | $205.6M | $165.3M | $132.9M | $1.329B | |
Value | $5.617B |
In the chart Earnings are multiplied by this value.
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.
Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 3.5% | -1.6% | 7.1% | 6.1% | -27% | -0.84% | 4.4% | -3.9% | 0.63% | 0.63% |
ROA | 5.2% | 7.1% | 10% | 11% | 7.9% | 5% | 6.8% | 7.3% | 7.3% | 7.3% |
ROE | 12% | -5.7% | 13% | 11% | -100% | -2.8% | 13% | -15% | 2.8% | 2.8% |
The average Net Margin over the past 5 years is -3.52%.
The trend of Net Margin over the past 5 years is +1.39%.
The average ROA over the past 5 years is +7.57%.
The trend of ROA over the past 5 years is -0.53%.
The average ROE over the past 5 years is -15.91%.
The trend of ROE over the past 5 years is +7.03%.
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.
Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | 4.17 | 3.18 | 5.83 | 5.34 | -47.20 | 4.41 | 4.17 | 3.70 | 3.70 |
Debt Equity | - | 1.41 | 0.69 | 0.74 | 2.08 | 1.22 | 1.02 | 1.25 | 1.42 | 1.42 |
MIN | ||||||||||
Graham Stability | - | - | - | 100% | -560% | - | - | - | 100% | -560% |
The Debt/FCF trailing twelve month is 3.70.
The trend of Debt/FCF over the past 5 years is 1.07.
Graham’s Stability measure stands at -5.58.
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.
Years | 03-2017 | 03-2019 | 03-2021 | 03-2023 | Trend |
---|---|---|---|---|---|
Revenue | 8.7% | -8% | -8.3% | -5.3% | -15% |
Net Income | - | -42% | - | - | - |
Stockholders Equity | 5.1% | -24% | -17% | -20% | -35% |
FCF | 7% | -4.5% | - | 2.7% | -22% |
The Revenue CAGR over the past 5 years is -8.01%.
The trend of Revenue growth rate over the past 5 years is -14.75%.
The Earnings CAGR over the past 5 years is -41.52%.
The trend of Earnings growth rate over the past 5 years is -.
The Equity CAGR over the past 5 years is -23.53%.
The trend of Equity growth rate over the past 5 years is -34.69%.
The FCF CAGR over the past 5 years is -4.52%.
The trend of FCF growth rate over the past 5 years is -21.6%.