Dell Technologies: A financial review
Krystal utkin | fin571 | March 23, 2020 | Dr. Edward haynes
Summary of Contents
The company and its ticker symbol
Cash flow from operations
Price-to-earnings ratio
Stock dividends and the yield, if any
Earnings per share ratio
Revenue estimates for the next 12 months
Revenue from the previous 3 years
Statement of cash flows and identify net cash from operating, investing, and financing activities over the past 3 years
Average trade volume.
Current stock price, 52-week high, and 1-year estimated stock price
Analysts’ recommendations for the stock (buy,sell, hold)
Market cap for the company
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Introduction
| CEO | Michael S. Dell |
| CEO Title | Chairman & Chief Executive Officer |
| Sector | Technology |
| Industry | Computers, Office Equipment |
| HQ Location | Round Rock, Texas |
| Website | http://www.delltechnologies.com |
| Years on Fortune 500 List | 25 |
| Employees | 157,000 |
Company Info
Dell Technologies has recently returned as one of the largest fortune 500 publicly traded companies. Michael Dell, the CEO has been on this list for well over 25 years. DELL is leading in the technology sector of the Computers and Office eqwuipment Industry with its HQ location in Round Rock, Texas. With over 157 thousand employees, DELL is definitely leading the charge. (Fortune, 2020).
PREVIOUS RANK
35
REVENUES ($M)
$90,621.0
REVENUE PERCENT CHANGE
15.2%
PROFITS ($M)
$-2,310.0
PROFITS PERCENT CHANGE
-
ASSETS ($M)
$111,820.0
EMPLOYEES
157,000
Fortune. (2020). Dell Technologies. Retrieved from https://fortune.com/fortune500/2019/dell-technologies/
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Earnings
Price to Earnings Ratio: 6.42
Earnings Per Share: 6.05
This Photo by Unknown Author is licensed under CC BY-SA-NC
As of today (2020-03-25), Dell Technologies's share price is $38.83.
Dell Technologies’ EPS for the trailing twelve months (TTM) ended in Jan. 2020 was $6.05. Therefore, Dell Technologies's P/E ratio for today is 6.42.
During the past 6 years, Dell Technologies's highest P/E Ratio was 17.67.
Guru Focus. (n.d.). P.E. Ratio. Dell Technologies. Retrieved from https://www.gurufocus.com/term/pe/dell/PE-Ratio/Dell%20Technologies
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Revenue
Next 12 Months
Between 92-120million
Past 3 Years
Growth Rate of 30%
Dell Technologies Revenue
: $92,154 Mil (TTM As of Jan. 2020)
Dell Technologies's revenue for the three months ended in Jan. 2020 was $24,032 Mil.
Its revenue for the trailing twelve months (TTM) ended in Jan. 2020 was $92,154 Mil.
Dell Technologies’s Revenue Per Share for the three months ended in Jan. 2020 was $31.87
Its Revenue Per Share for the trailing twelve months (TTM) ended in Jan. 2020 was $122.62.
During the past 6 years, Dell Technologies's highest 3-Year average
Growth Rate was 30.00% per year.
The lowest was 12.40% per year. And the median was 13.40% per year.
Guru Focus. (n.d.). Revenue. Dell Technologies. Retrieved from https://www.gurufocus.com/term/Revenue/dell/Revenue/Dell%20Technologies
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Cash flows
9.291 MIL as of January 2020
Dell Technologies Cash Flow from Operations
: $9,291 Mil (TTM As of Jan. 2020)
Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
Guru Focus. (n.d.) Cash flow from operations. Dell Technologies. Retireved from https://www.gurufocus.com/term/Cash+Flow+from+Operations/dell/Cash-Flow-from-Operations/Dell%20Technologies
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Cash flows (cont’d)
| Dell Technologies Annual Data | ||||||
| Jan15 | Jan16 | Jan17 | Jan18 | Jan19 | Jan20 | |
| Cash Flow from Operations | 2,162.00 | 2,367.00 | 6,843.00 | 6,991.00 | 9,291.00 |
Current stock price
12 analysts have issued 1 year price targets for Dell's shares. Their forecasts range from $35.00 to $68.00. On average, they anticipate Dell's share price to reach $52.00 in the next twelve months.
Market Beat. (n.d.). NYSE. DELL. Retrieved from https://www.marketbeat.com/stocks/NYSE/DELL/
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Stock dividends and the yield
About Dividend Yield (TTM)
“Dell Technologies' dividend yield currently sits at 0%, which is in-line with the Computers - IT Services industry's yield of 0.
The company's trailing twelve month (TTM) Dividend Yield calculates the indicated annual dividend divided by the stock price. This value is always expressed as a percentage. This is the return on investment that is specifically attributed to the expected dividends that are paid out over a year. Note: investors should not base their investments on the size of the dividend yield alone. Seek attractive dividend yields, but only on top rated stocks with a solid payment history” (Zaks, n.d.).
Zaks. (n.d.). DELL Dividends. Retrieved from https://www.zacks.com/stock/chart/DELL/fundamental/dividend-yield-ttm
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Average trade volume
Dell Technologies Inc (Symbol: DELL) options are showing a volume of 23,370 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 78.9% of DELL's average daily trading volume over the past month, of 3.0 million shares.
NASDAQ. (n.d.). DELL – Average Trade Volume. Retrieved from https://www.nasdaq.com/articles/notable-friday-option-activity%3A-syna-dell-wdc-2019-12-13
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Market cap for the company
About Market Cap
Dell Technologies has a market cap of $23.71 B, which represents its current share price of $32.49 multiplied by its outstanding share number of 729.73. As a large-cap company, DELL's shareholders are exposed to the least amount of risk.
Zaks. (n.d.). Market Cap. Dell Technologies. Retrieved from https://www.zacks.com/stock/chart/DELL/fundamental/market-cap
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Recommendations and Conclusions
Maintain positive momentum
Special committees
Simplified capital and ownership structure
This Photo by Unknown Author is licensed under CC BY-SA
This Photo by Unknown Author is licensed under CC BY
This Photo by Unknown Author is licensed under CC BY-NC
Dell Technologies is experiencing strong positive momentum across its businesses after a period of strong revenue growth, earnings, cash flow and accelerated debt pay-down. Dell Technologies believes the elimination of the Class V tracking stock and simplification of the VMware ownership structure is beneficial to VMware Class A public stockholders. VMware Class A public stockholders will also participate pro rata in the significant return of capital. VMware will remain an independent publicly traded company. (Dell, n.d.).
The transaction simplifies Dell Technologies’ capital and ownership structure and creates a class of publicly-traded security that reflects the full value of the Dell Technologies family of businesses. As a public company, Dell Technologies has maintained and plans to continue to maintain the same strategic focus on long-term growth that the company had achieved while being privately managed.
By maintaining their positive momentum, continuing to create better relationships, and simplifying their structures, DELL is set out to do great things. The growth rate has maintained at 30% over the last three years and is looking to continue to do so. The stocks have maintained their positive pricing and even through COVID-19 will continue to stay that way. Purchasing stocks now as the price lowers is an excellent idea because I believe the company is headed in the right direction. They’ve been on the Fortune 500 list for well over 25 years and has maintained tis spot in the top 50 during this time. Overall, DELL is the company to be at.
Dell Technologies. (n.d.). Corporate – Dell Technologies. Retrieved from https://corporate.delltechnologies.com/el-gr/newsroom/20180702-press.htm
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References
Fortune. (2020). Dell Technologies. Retrieved from https://fortune.com/fortune500/2019/dell-technologies/
Guru Focus. (n.d.). P.E. Ratio. Dell Technologies. Retrieved from https://www.gurufocus.com/term/pe/dell/PE-Ratio/Dell%20Technologies
Guru Focus. (n.d.). Revenue. Dell Technologies. Retrieved from https://www.gurufocus.com/term/Revenue/dell/Revenue/Dell%20Technologies
Market Beat. (n.d.). NYSE. DELL. Retrieved from https://www.marketbeat.com/stocks/NYSE/DELL/
Guru Focus. (n.d.) Cash flow from operations. Dell Technologies. Retireved from https://www.gurufocus.com/term/Cash+Flow+from+Operations/dell/Cash-Flow-from-Operations/Dell%20Technologies
Zaks. (n.d.). DELL Dividends. Retrieved from https://www.zacks.com/stock/chart/DELL/fundamental/dividend-yield-ttm
NASDAQ. (n.d.). DELL – Average Trade Volume. Retrieved from https://www.nasdaq.com/articles/notable-friday-option-activity%3A-syna-dell-wdc-2019-12-13
Zaks. (n.d.). Market Cap. Dell Technologies. Retrieved from https://www.zacks.com/stock/chart/DELL/fundamental/market-cap
Dell Technologies. (n.d.). Corporate – Dell Technologies. Retrieved from https://corporate.delltechnologies.com/el-gr/newsroom/20180702-press.htm
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