ASH

Ashland

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Basic Materials

industry

Specialty Chemicals

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

DXC Technology generates cash by providing IT outsourcing, systems integration, and enterprise technology services to large organizations that prefer contractual, recurring service relationships over in-house infrastructure management. The model is built on long-term service agreements that convert technical labor and platform management into predictable revenue streams. Scale and embedded client relationships create switching costs, particularly where DXC manages mission-critical systems. Its moat is not based on proprietary technology but on operational depth, enterprise integration complexity, and the friction involved in replacing a global IT services partner.

VALUATION

P/E

-

Market Cap ($M USD)

$2,581

Forward P/E

11.9

PEG

0.4

PRICE TO SALES

1.4

PRICE TO BOOK

1.4

EV / EBITDA

-11.8

5-Year Average P/E

DIVIDEND

Yield

2.90%

Annual Payout

$1.66

Payout Ratio

-

Consecutive Years of Dividend Growth

7

5-Year Dividend Growth Rate

8.60%

Financial Health & Profitability

Earnings Per Share

-$14.53

Next Year EPS Growth Estimate

$4.75

Next Year Revenue Growth Estimate

4.30%

Return on Equity (ROE)

-36.80%

Operating Margin

4.20%

Debt-to-Equity

0.8

Piotroski F-Score

5

Altman Z-Score

2

Return on Invested Capital (ROIC)

-18.70%%

Current Ratio

3.2

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 5x earnings and just 3.5x forward earnings, DXC is trading at deep-value multiples that imply either structural decline or elevated balance sheet risk. The valuation is optically cheap relative to EPS of 2.1 and estimated EPS of 2.36, but the Altman Z-Score of 1.1 signals real financial stress, not theoretical risk. A Price/Sales ratio of 0.2 and Price/Book of 0.6 suggest the market is discounting asset quality and durability of cash flows. This is not a clean growth story; it is a balance-sheet-constrained turnaround priced for skepticism, not optimism. The market is clearly embedding distress probability, and the low Forward P/E reflects survival risk rather than growth confidence.

AI Exposure / Tech Reliance

As an Information Technology Services provider, DXC sits directly in the enterprise IT modernization pipeline where AI integration, automation, and cloud migration spending flows. Companies in this segment can benefit from AI-driven cost optimization mandates, but they must execute flawlessly to avoid commoditization. The resilience of the model depends less on invention and more on execution discipline and contract durability.

The Bull Case

A value or GARP investor can make a serious case here: a 3.5 forward P/E with expected EPS growth from 2.1 to 2.36 creates a compressed multiple on improving earnings. Operating margins of 13.50% and ROIC of 8.60% indicate the business still generates real operating profitability despite headline pessimism. A Piotroski F-Score of 7 signals improving financial quality across profitability, leverage, and efficiency factors, which is not typical for distressed equities. The 0.6 Price/Book ratio implies the market is valuing assets at a discount, offering tangible downside support if earnings stabilize. Combined with a 1.4 TTM Yield and a 1.4 Current Ratio, there is evidence of ongoing cash generation and short-term liquidity stability, giving turnaround investors a credible margin-of-safety argument.

The Bear Case

The bear case is brutal and rooted in leverage and solvency optics. Debt/Equity of 5.30% signals a heavily levered capital structure relative to equity, and an Altman Z-Score of 1.1 places the company in financial distress territory. Return on Equity of -2.40% shows shareholder capital is not currently compounding efficiently despite positive operating margins, implying balance sheet drag or structural inefficiencies. The PEG Forward is not provided, limiting visibility into whether the low multiple is justified by sustainable growth. When you combine weak equity returns with distress-level credit signals, the low valuation starts to look like a value trap rather than a bargain.

Market Sentiment & Smart Money

Short Interest %

12.30%

Analyst Consensus

1.77

Average Analyst Price Target

$66.45

Institutional Ownership %

107.50%

1-Year Beta

1.15

Insider Buying % (6 Mo)

1.20%%

Distance to 52-Week High

86.00%%

Distance to 52-Week Low

121.90%%