DELLDELL
US • TECHNOLOGY
$437.50
P/E
34.75
PEG
0.12
FCF Yield
1.7%
Rev Growth YoY
+87.5% YoY
Gross Margin
19.2%
Health Score
5/10
D/E Ratio
13.29
Confidence
MEDIUM
Business Snapshot
Dell Technologies operates in the computer hardware industry, primarily generating revenue through the sale of personal computers, servers, storage solutions, and networking products to enterprise and consumer customers. It is a dominant player in the market, holding a strong competitive position as one of the largest global suppliers of IT infrastructure and PC hardware. As a large-cap company with a market capitalization of $283.88B, Dell boasts substantial financial scale, reporting trailing twelve-month (TTM) revenue of $134.00B. A defining characteristic is its capacity to grow revenue extremely rapidly—87.5% year-over-year—while also generating hefty free cash flow, which underpins its ability to invest significantly in its core businesses.
Financial Health
Dell’s gross margin of 19.2% is relatively thin for the hardware sector, limiting its per-unit profitability. The net margin of 6.3% is modest, though no prior-year comparison is available to assess the trajectory...
Risk Assessment
- VALUATION — P/E of 34.75x is elevated and trades at a premium to the sector average of 22x.
- DEBT / LIQUIDITY — Debt/Equity of 13.29x represents a very high level of financial leverage, while the current ratio of 0.91x indicates liquidity risk.
- INSIDER ACTIVITY — Insider selling outpaces buying significantly, with 0 buys versus 3 sells over the last 90 days.
- 52-WEEK POSITION — With the 52-week range of 109.7$ to 468.7$, the current price of $437.5 trades near the top of its range, limiting near-term upside potential....
Dell’s gross margin of 19.2% is relatively thin for the hardware sector, limiting its per-unit profitability. The net margin of 6.3% is modest, though no prior-year comparison is available to assess the trajectory. The balance sheet is heavily leveraged, with a Debt/Equity ratio of 13.29x, posing a significant financial risk. Liquidity is stretched, as reflected by a current ratio of 0.91x, indicating current liabilities exceed current assets. On a positive note, the company generates substantial free cash flow of $4.77B, yielding 1.7%, which supports debt payments and reinvestment but limits surplus cash for aggressive shareholder returns.
- VALUATION — P/E of 34.75x is elevated and trades at a premium to the sector average of 22x. - DEBT / LIQUIDITY — Debt/Equity of 13.29x represents a very high level of financial leverage, while the current ratio of 0.91x indicates liquidity risk. - INSIDER ACTIVITY — Insider selling outpaces buying significantly, with 0 buys versus 3 sells over the last 90 days. - 52-WEEK POSITION — With the 52-week range of 109.7$ to 468.7$, the current price of $437.5 trades near the top of its range, limiting near-term upside potential.
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