AMCR

Amcor

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Packaging & Containers

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

DXC generates cash by providing mission-critical IT services, outsourcing, cloud migration, and enterprise technology management to large organizations. Its revenue model is largely contract-based, creating recurring cash flow tied to long-term enterprise relationships. The moat is rooted in switching costs and embedded infrastructure knowledge—once integrated into a client’s systems, replacement risk is operationally disruptive and expensive. Scale across industries allows it to spread delivery costs and protect its 13.50% operating margin, but the durability of that moat depends on execution and balance sheet stability rather than technological exclusivity.

VALUATION

P/E

31

Market Cap ($M USD)

$19,017

Forward P/E

9.4

PEG

1.1

PRICE TO SALES

0.9

PRICE TO BOOK

1.6

EV / EBITDA

14

5-Year Average P/E

DIVIDEND

Yield

6.30%

Annual Payout

$2.60

Payout Ratio

192.00%

Consecutive Years of Dividend Growth

6

5-Year Dividend Growth Rate

2.00%

Financial Health & Profitability

Earnings Per Share

$1.34

Next Year EPS Growth Estimate

$4.39

Next Year Revenue Growth Estimate

1.90%

Return on Equity (ROE)

5.10%

Operating Margin

8.40%

Debt-to-Equity

1.4

Piotroski F-Score

4

Altman Z-Score

1.2

Return on Invested Capital (ROIC)

4.20%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

DXC is trading at deep distress multiples with a P/E of 5 and a Forward P/E of 3.5, which signals either extreme undervaluation or an earnings base the market believes is unsustainable. The discount is reinforced by a Price/Sales of 0.2 and Price/Book of 0.6, but the Altman Z-Score of 1.1 is firmly in distress territory, meaning the balance sheet risk is real and cannot be ignored. EPS of 2.1 growing to an estimated 2.36 suggests earnings stability, yet the market cap of just $1,942M implies investors are heavily discounting those profits. This is a classic deep value setup where solvency risk is the gating factor between a multi-bagger rerating and a value trap. The valuation screams mispricing, but the balance sheet screams caution.

AI Exposure / Tech Reliance

As an Information Technology Services company, DXC sits directly in the path of enterprise AI deployment and modernization cycles. Firms in this segment can embed AI into consulting, outsourcing, and infrastructure transformation engagements, which supports margin leverage if executed properly. The 13.50% operating margin indicates the company still has operating discipline to monetize complex enterprise work in a shifting tech landscape.

The Bull Case

A value or GARP investor buys DXC for the asymmetry. A 3.5 Forward P/E with EPS expected at 2.36 implies the market is pricing in a severe earnings contraction that is not yet visible in the numbers. The Piotroski F-Score of 7 indicates fundamentally solid operational signals, while ROIC at 8.60% shows the business still generates returns above a typical cost of capital for a distressed multiple stock. Operating margins of 13.50% are not distressed-level margins, and a Current Ratio of 1.4 suggests adequate short-term liquidity. With a Price/Book of 0.6, investors are paying a steep discount to accounting equity, creating tangible rerating potential if stability persists.

The Bear Case

The red flags are not subtle. Debt/Equity of 5.30% signals a heavily levered capital structure relative to equity, and the Altman Z-Score of 1.1 places the firm in financial distress risk territory. Return on Equity of -2.40% reveals shareholder value destruction despite positive EPS, suggesting capital structure strain or legacy balance sheet issues. The absence of a PEG Forward figure and missing Short % of Float remove key visibility into growth-adjusted valuation and market conviction, while Institutional Ownership at $14.63 indicates limited large-scale sponsorship. This is a balance sheet story first and an earnings story second, and if credit conditions tighten, equity holders are structurally exposed.

Market Sentiment & Smart Money

Short Interest %

7.20%

Analyst Consensus

1.63

Average Analyst Price Target

$51.14

Institutional Ownership %

70.20%

1-Year Beta

0.79

Insider Buying % (6 Mo)

0.30%%

Distance to 52-Week High

80.80%%

Distance to 52-Week Low

108.50%%