Previous Close | $125.67 |
Intrinsic Value | $0.00 |
Upside potential | -100% |
Data is not available at this time.
Dell Technologies Inc. operates as a global leader in the technology infrastructure and solutions sector, specializing in hybrid cloud, edge computing, and digital transformation. The company generates revenue through a diversified portfolio, including hardware (PCs, servers, storage), software, and services, with a strong emphasis on enterprise IT solutions. Dell’s direct-to-customer sales model and supply chain efficiency provide a competitive edge, while its partnerships with VMware and other ecosystem players enhance its market reach. The firm holds a dominant position in the PC market and is a key player in enterprise storage and servers, competing with HP, Lenovo, and IBM. Its focus on as-a-service offerings and subscription models aligns with industry shifts toward recurring revenue streams. Dell’s vertical integration, from design to distribution, allows it to maintain cost leadership while addressing evolving customer demands in cybersecurity, AI, and multi-cloud environments.
Dell reported FY2025 revenue of $95.6 billion, with net income of $4.6 billion, reflecting a 4.8% net margin. Operating cash flow stood at $4.5 billion, though capital expenditures of $2.7 billion indicate significant reinvestment. The diluted EPS of $6.34 underscores steady profitability, supported by cost discipline and scale advantages in its core segments. The company’s asset-light services and software segments contribute to margin resilience.
Dell’s earnings power is driven by its high-margin Infrastructure Solutions Group and recurring software revenue, offsetting cyclical hardware demand. ROIC metrics are tempered by substantial debt, but free cash flow generation remains robust. The firm’s capital allocation prioritizes debt reduction and shareholder returns, with dividends and buybacks funded by operational efficiency.
Dell’s balance sheet shows $3.6 billion in cash against $24.6 billion in total debt, indicating leveraged but manageable liquidity. Debt maturities are staggered, and refinancing risks are mitigated by strong cash flow. The company’s net debt/EBITDA ratio suggests moderate leverage, with covenants comfortably met.
Growth is fueled by hybrid cloud adoption and edge computing, though PC demand cyclicality poses risks. Dell’s $1.80 annual dividend per share reflects a conservative payout ratio, prioritizing flexibility. Share repurchases and strategic M&A could supplement organic growth in high-margin niches like AI infrastructure.
Trading at a forward P/E aligned with hardware peers, Dell’s valuation discounts its transition to recurring revenue. Market expectations hinge on execution in higher-growth segments, with investor focus on software and services contribution to offset hardware volatility.
Dell’s integrated solutions, brand strength, and global scale position it to capitalize on digital transformation trends. Near-term headwinds include supply chain costs and macroeconomic softness, but long-term prospects in AI and edge computing remain compelling. Execution on debt reduction and margin expansion will be critical to sustaining investor confidence.
FY2025 company filings, investor presentations
show cash flow forecast
Fiscal year | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | 2050 | |
INCOME STATEMENT | ||||||||||||||||||||||||||
Revenue growth rate, % | NaN | |||||||||||||||||||||||||
Revenue, $ | NaN | |||||||||||||||||||||||||
Variable operating expenses, $m | NaN | |||||||||||||||||||||||||
Fixed operating expenses, $m | NaN | |||||||||||||||||||||||||
Total operating expenses, $m | NaN | |||||||||||||||||||||||||
Operating income, $m | NaN | |||||||||||||||||||||||||
EBITDA, $m | NaN | |||||||||||||||||||||||||
Interest expense (income), $m | NaN | |||||||||||||||||||||||||
Earnings before tax, $m | NaN | |||||||||||||||||||||||||
Tax expense, $m | NaN | |||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||
Cash and short-term investments, $m | NaN | |||||||||||||||||||||||||
Total assets, $m | NaN | |||||||||||||||||||||||||
Adjusted assets (=assets-cash), $m | NaN | |||||||||||||||||||||||||
Average production assets, $m | NaN | |||||||||||||||||||||||||
Working capital, $m | NaN | |||||||||||||||||||||||||
Total debt, $m | NaN | |||||||||||||||||||||||||
Total liabilities, $m | NaN | |||||||||||||||||||||||||
Total equity, $m | NaN | |||||||||||||||||||||||||
Debt-to-equity ratio | NaN | |||||||||||||||||||||||||
Adjusted equity ratio | NaN | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
Depreciation, amort., depletion, $m | NaN | |||||||||||||||||||||||||
Funds from operations, $m | NaN | |||||||||||||||||||||||||
Change in working capital, $m | NaN | |||||||||||||||||||||||||
Cash from operations, $m | NaN | |||||||||||||||||||||||||
Maintenance CAPEX, $m | NaN | |||||||||||||||||||||||||
New CAPEX, $m | NaN | |||||||||||||||||||||||||
Total CAPEX, $m | NaN | |||||||||||||||||||||||||
Free cash flow, $m | NaN | |||||||||||||||||||||||||
Issuance/(repurchase) of shares, $m | NaN | |||||||||||||||||||||||||
Retained Cash Flow, $m | NaN | |||||||||||||||||||||||||
Pot'l extraordinary dividend, $m | NaN | |||||||||||||||||||||||||
Cash available for distribution, $m | NaN | |||||||||||||||||||||||||
Discount rate, % | NaN | |||||||||||||||||||||||||
PV of cash for distribution, $m | NaN | |||||||||||||||||||||||||
Current shareholders' claim on cash, % | NaN |