DXC Technology Company

DXC Technology Company

DXCยทNYSE

$9.15

-11%
TechnologyInformation Technology Services

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. 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 digital 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 uses various technologies and methods to accelerate the creation, modernization, delivery, and maintenance of secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership. In addition, this segment offers business process services, which include integration and optimization of front and back office processes, and agile process automation. The GIS segment adapts legacy apps to cloud, migrate the right workloads, and securely manage their multi-cloud environments; and offers security solutions help predict attacks, proactively respond to threats, and ensure compliance, as well as to protect data, applications, and infrastructure. It also provides IT outsourcing services to help customers securely and cost-effectively run mission-critical systems and IT infrastructure. In addition, this segment offers workplace services to fit its customer's employee, business, and IT needs from intelligent collaboration; and modern device management, digital support services, and mobility services. DXC Technology Company is headquartered in Ashburn, Virginia.

At a Glance

Live Snapshot
Market Cap$1.50B
EPS0.1000
P/E Ratio91.50
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 91.5).

Valuation inputs: P/E 91.5, earnings yield +1.1%, momentum -11.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE 0.0%, ROIC 0.0%).

Profitability stack: net margin +0.1%, ROE 0.0%, ROIC 0.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +73.6%, momentum -11.3%, net margin +0.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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DXC Technology Company Market vs Earnings Trajectory

DXC ยท NYSE

Loading price and EPS data...

DXC Technology Company

DXC Technology Company Fair Value Envelope

DXC ยท NYSE

Our analysis suggests that DXC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $9.15, this represents a potential HIDDEN relative to our calculated worth for DXC Technology Company.

Intrinsic Value
Current Price: $9.15
3Y-104.0%
5Y-117.0%
10Y-111.0%
3Y-12.0%
5Y-22.0%
10Y+66.0%
3Y-103.0%
5Y-97.0%
10Y-115.0%
3Y-12.0%
5Y+906.0%
10Y+28.0%
3Y-10.0%
5Y-856.0%
10Y+111.0%
3Y-34.0%
5Y-49.0%
10Y+70.0%
DXC Technology Company

DXC Technology Company Profit Bridge

DXC ยท NYSE
Revenue12.64B
Cost of Goods Sold (0.00)
Gross Profit0.00
Operating Expenses (1.40B)
Operating Income0.00
Interest Expense (216.00M)
Other Income/Expense0.00
Pretax Income318.00M
Income Tax (290.00M)
Net Income18.00M
Net Income
18.00M

Profitability Analysis

Gross Margin

0.0%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

0.0%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

0.1%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

91.2%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

0.00%
Gross Profit Margin
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
0.00%
Operating Profit Margin
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
0.14%
Net Profit Margin
-95%
3Y-104.0%
5Y-97.0%
10Y-109.0%
0.00%
Return on Equity
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
0.00%
Return on Assets
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
0.00%
Return on Invested Capital
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
DXC

DXC Technology Company Cash Conversion Engine

DXC ยท NYSE
Net Income18.00M
Depreciation & Amortization1.18B
Stock-Based Compensation86.00M
Change in Working Capital0.00
Others-64.00M
Capital Expenditures-212.00M
Free Cash Flow1.04B

Cash Flow Quality Analysis

FCF Conversion Rate

5755.6%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

17.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+26.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$0.00

Neutral working capital impact. Changes in current assets and liabilities balanced out.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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DXC Technology Company Funding & Solvency Profile

DXC ยท NYSE
Cash & Cash Equivalents1.74B
Net Receivables2.97B
Inventory0.00
Other Current Assets652.00M
Total Current Assets5 B
Property, Plant & Equipment1.78B
Goodwill & Intangible Assets2.14B
Long-Term Investments0.00
Other Non-Current Assets2.80B
Total Non-Current Assets5 B
Total Assets
12.89B

Financial Health Analysis

Current Ratio

1.36x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

3.02x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

1 B

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

42% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

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DXC Technology Company Street Expectations Map

DXC ยท NYSE

Wall Street analysts project that DXC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 12.50, with estimates ranging from a low of 12.00 to a high of 13.00.

Lowest Target
12.00
31.15%
Consensus Target
12.50
36.61%
Highest Target
13.00
42.08%

The consensus 1-year price target stands at 12.50, with estimates ranging from a low of 12.00 to a high of 13.00.

Analyst Consensus Analysis

Upside Potential

+36.6%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

8.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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DXC Technology Company Insider Positioning

DXC ยท NYSE

During the last 12 months, insiders have purchased $251K and sold $68K worth of DXC shares, resulting in $183K of net buying activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

16.4K

250.71K

Sold

2.1K

31.82K

Net Activity

+219K

+$219K

6-9 Months

Bought

0

0.00

Sold

2.5K

36.27K

Net Activity

-36K

-$36K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
FRJ

Fernandez Raul J

Director, Officer: President And Ceo

16.4K sharesโ€ข2 transactions

$251K

Top Sellers

1
VCA

Voci Christopher Anthony

Officer: Svp, Controller And Pao

4.6K sharesโ€ข2 transactions

$68K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $183K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

3.68:1

Exceptional buy/sell ratio. Buying dramatically outweighs sellingโ€”one of the strongest possible insider signals.

Insider Participation

Balanced

1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.

0.00%
Dividend Yield
3Y-
5Y-100.0%
10Y-100.0%
ย 

dxc Dividend History

DXC
10Y CAGR +9%
Latest $0.21
Annual $1.03
5 year growth trend
Last Period: +0%