/
DXC Technology is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations - helping them harness AI to drive outcomes at a time of exponential change with speed. With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC moderniz…
$9.15
$0.85 (-8.50%)
Price from 2 days ago
Operating margin is thin at 2.52%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 1.8% YoY. Margins deteriorated 5.4pp alongside, both lines moving the wrong way.
At 92x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 9.72% to 3.26%, capital efficiency is deteriorating.
91.5x earnings, 1.6x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$12.64B
▼ -1.8% YoY
Net Income (TTM)
$18M
▼ -95.4% YoY
Op. Margin
2.52%
▼ -5.4pp YoY
ROIC
3.26%
▼ -6.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.04B
▼ -9.9% YoY
Op. Cash Flow (TTM)
$1.25B
▼ -10.7% YoY
Net Debt
$2.68B
Cash & Equiv.
$1.74B
5Y CAGR: -6.5%
Continue Research