Skip to Content

Dell Technologies Inc Ordinary Shares - Class C DELL

Morningstar Rating
$166.08 +5.90 (3.68%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Dell Commands the PC and Server Markets but Lacks a Moat

Dell Technologies is a large provider of enterprise hardware. Dell holds top market shares across its businesses, but these are predominantly commoditized, cyclical, and price-competitive markets that, in our view, don’t endow a leader like Dell with an economic moat. We forecast Dell to see no more than modest top line growth into the medium- and long-term, and see little opportunity for material and durable margin expansion. Dell’s strong suit is its robust free cash flow generation, both in absolute terms and as a share of its net income. We are pleased with the company’s newfound focus on shareholder returns as a prioritized use of this heady cash flow.

Price vs Fair Value

DELL is trading at a 237% premium.
Price
$160.18
Fair Value
$29.00
Uncertainty
High
1-Star Price
$91.67
5-Star Price
$21.00
Economic Moat
Kkfm
Capital Allocation
Rdmyzyyc

Bulls Say, Bears Say

Bulls

Dell is an enterprise IT hardware behemoth, with top three market shares across personal computers, peripheral displays, x86 servers, and external storage arrays.

Bears

Dell’s core businesses compete in commoditized and cyclical markets that erode economic profits.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if DELL is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$160.18
Day Range
$161.01169.69
52-Week Range
$44.45169.69
Bid/Ask
$167.42 / $167.60
Market Cap
$117.99 Bil
Volume/Avg
18.7 Mil / 9.4 Mil

Key Statistics

Price/Earnings (Normalized)
22.47
Price/Sales
1.33
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.20%
Total Yield
3.01%

Company Profile

Dell Technologies is a broad information technology vendor, primarily supplying hardware to enterprises. It is focused on premium personal computers and enterprise on-premises data center hardware. It holds top-three shares in its core markets of personal computers, peripheral displays, mainstream servers, and external storage. Dell is vertically integrated but has a robust ecosystem of component and assembly partners, and also relies heavily on channel partners to fulfill its sales.
Sector
Technology
Industry
Computer Hardware
Stock Style Box
Large Value
Total Number of Employees
120,000

Competitors

Valuation

Metric
DELL
00992
HPE
Price/Earnings (Normalized)
22.4717.439.07
Price/Book Value
3.251.11
Price/Sales
1.330.350.85
Price/Cash Flow
14.939.084.47
Price/Earnings
DELL
00992
HPE

Financial Strength

Metric
DELL
00992
HPE
Quick Ratio
0.440.560.49
Current Ratio
0.740.870.89
Interest Coverage
3.395.4410.54
Quick Ratio
DELL
00992
HPE

Profitability

Metric
DELL
00992
HPE
Return on Assets (Normalized)
6.17%3.04%4.66%
Return on Equity (Normalized)
19.73%12.75%
Return on Invested Capital (Normalized)
24.55%12.71%8.37%
Return on Assets
DELL
00992
HPE
See how this stock stacks up to its competitors with Morningstar Investor

Computer Hardware Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ANET
Arista Networks IncWwclkrzhyYqzts$96.1 Bil
SMCI
Super Micro Computer IncFyfzcw$51.2 Bil
HPQ
HP IncNnstyjxlBqhz$32.0 Bil
CAJFF
Canon IncBkhycbdhSchph$28.4 Bil
CAJPY
Canon Inc ADRYhfgywgvGyqjg$28.4 Bil
WDC
Western Digital CorpZzksvtjqGsbhl$24.4 Bil
NTAP
NetApp IncHtybqgpMxsv$24.4 Bil
STX
Seagate Technology Holdings PLCXhfqylnrHzgp$20.3 Bil
LOGI
Logitech International SAPrfgtmgplGrj$14.6 Bil

Sponsor Center