Throughout this report, we refer to DXC Technology Company, together with its consolidated subsidiaries, as “we,” “us,” “our,” “DXC,” or the “Company.” In order to make this report easier to read, we also refer throughout to (i) our Consolidated Financial Statements as our “financial statements,” (ii) our Consolidated Statements of Operations as our “statements of operations,” (iii) our Consolidated Statements of Comprehensive Income (Loss) as the "statements of comprehensive income,"(iv) our Consolidated Balance Sheets as our “balance sheets” and (v) our Consolidated Statements of Cash Flows as our “statements of cash flows.” In addition, references throughout to numbered “Notes” refer to the numbered Notes to our Financial Statements that we include in the Financial Statements section of this report. PART I DXC Technology is a leading global provider of information technology ("IT") services.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 12.7B | 12.9B | 13.7B | 14.4B | 16.3B | 17.7B |
| Net Income | 423M | 389M | 91M | -568M | 718M | -149M |
| EPS | $2.30 | $2.10 | $0.46 | $-2.48 | $2.81 | $-0.59 |
| Free Cash Flow | 1.1B | 1.1B | 1.2B | 1.1B | 1.2B | -137M |
| ROIC | 11.6% | 12.0% | 14.3% | 18.0% | 13.0% | 7.6% |
| Gross Margin | - | 24.1% | 22.6% | 22.1% | 22.0% | 20.5% |
| Debt/Equity | 1.15 | 1.20 | 1.39 | 1.20 | 0.93 | 1.03 |
| Dividends/Share | $0.00 | - | - | $0.00 | $0.84 | $0.84 |
| Operating Income | 963M | 1.0B | 1.0B | 1.1B | 1.4B | 1.1B |
| Operating Margin | 7.6% | 7.9% | 7.4% | 7.9% | 8.5% | 6.2% |
| ROE | 13.4% | 12.9% | 2.9% | -13.3% | 14.3% | -3.1% |
| Shares Outstanding | 176M | 185M | 198M | 229M | 256M | 253M |
DXC Technology Co passes 2 of 9 quality checks, indicating weak fundamentals.
DXC Technology Co trades at 5.4x trailing earnings, compared to its 15-year median P/E of 13.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 1.9x vs a median of 5.8x. The company's 5-year average ROIC is 13.0% with a gross margin of 22.3%. Total shareholder yield (buybacks) is 8.6%. At current prices, the estimated annualized return to fair value is +5.8%.
DXC Technology Co (DXC) has a current P/E ratio of 5.4, compared to its historical median P/E of 13.8. The stock is currently considered Fair based on its historical valuation range.
DXC Technology Co (DXC) has a 5-year average return on invested capital (ROIC) of 13.0%. This indicates solid capital allocation.
DXC Technology Co (DXC) has a market capitalization of $2.2B. It is classified as a mid-cap stock.
DXC Technology Co (DXC) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 8.62%.
Based on historical P/E analysis, DXC Technology Co (DXC) appears fair. The current P/E of 5.4 is 61% below its historical median of 13.8. The estimated fair value CAGR (P/E method) is -27.6%.
DXC Technology Co (DXC) operates in the Services-Computer Processing & Data Preparation industry, within the Technology sector.
DXC Technology Co (DXC) reported annual revenue of $12.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
DXC Technology Co (DXC) has a net profit margin of 3.0%. This is a modest margin.
DXC Technology Co (DXC) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DXC Technology Co (DXC) has a debt-to-equity ratio of 1.20. This indicates moderate leverage.
DXC Technology Co (DXC) reported earnings per share (EPS) of $2.10 in its most recent fiscal year.
DXC Technology Co (DXC) has a return on equity (ROE) of 12.9%. This indicates moderate shareholder returns.
DXC Technology Co (DXC) has a 5-year average gross margin of 22.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 10 years of financial data for DXC Technology Co (DXC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DXC Technology Co (DXC) has a book value per share of $17.43, based on its most recent annual SEC filing.
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