DXCDXC Technology Company

$12.39-10% 1Y

Is the business good?

Mixed

The checks split: earnings fully cash-backed (2.1×), but returns that lean on debt.

1 good, 1 to watch, 1 neutral, 1 without data
Profits arrive as cash2.07×derived · Jun 30, 2026

Operating profit is fully backed by cash.

Margin direction, 3 years−0.5 pts

Margins have held roughly steady, a stable cost structure.

Where ROE comes from4.3× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 8% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

Leverage (Debt/EBITDA)better than 69% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

How good a business is DXC?

DXC Technology Company earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

16%

Return on invested capital · cost of capital 9.0% · 6.5 points above what the capital costs: growth creates value

Operating margin
7.2%

Operating margin · Information Technology Services median 8.0% · 12 months to Q1 2027

Cash conversion
2.07×

Cash conversion · 2.15× a year ago · operating cash flow covers the operating profit after tax

Share count, year on year
−10%

Share count, year on year · bought back, each share owns more of the company

Operating margin by fiscal year
YearOperating margin
FY20216.2%
FY20228.5%
FY20237.9%
FY20247.4%
FY20257.9%
FY20267.7%
Details›
Gross margin12 months to Q1 2027
23%
Operating margin12 months to Q1 2027
7.2%
Net margin12 months to Q1 2027
0.99%
Free cash flow margin
10%
Revenue, trailing twelve months
$12.5B
Free cash flow, trailing twelve months
$1.25B
Net income, trailing twelve months
$124M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
16%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

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