DXCDXC Technology Company
Is the business good?
The checks split: earnings fully cash-backed (2.1×), but returns that lean on debt.
Operating profit is fully backed by cash.
Margins have held roughly steady, a stable cost structure.
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.
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.
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
| Year | Operating margin |
|---|---|
| FY2021 | 6.2% |
| FY2022 | 8.5% |
| FY2023 | 7.9% |
| FY2024 | 7.4% |
| FY2025 | 7.9% |
| FY2026 | 7.7% |
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.
Information Technology Services
Ranks #13 of 31 by RyuScore