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Deep Value: cash covers more than 100% of the stock price

This company holds roughly $2.0B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

DXC Technology Company logo

DXC Technology Company

DXC
38
Information Technology Services · Technology
Also trades as: 0I6U.L
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Mixed
Valuation
Exceptional

Winston Score History

The full picture

DXC Technology helps large companies manage their computer systems and technology needs. It provides IT services like cloud computing, cybersecurity, data analytics, and running day-to-day tech operations for clients. Its main customers are big businesses and government agencies across industries like healthcare, banking, and insurance.

DXC makes money by signing long-term service contracts with its clients, essentially acting as an outsourced IT department. The company operates globally, with a large presence in North America, Europe, and Australia, and employs roughly 130,000 people. However, DXC has struggled to grow revenue in recent years as clients reduce outsourcing spending or move work in-house, and its thin margins — reflected in a gross margin below 15% and a near-zero return on invested capital — highlight the key risk: the company must successfully cut costs and win new contracts before further revenue erosion weakens its already fragile financial position.

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Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
20.4%
Thin — 20.4% gross margin
Profit after running costs
Operating Margin
8.0%
Modest — 8.0% operating margin
Return on the money invested
ROCE
6.5%
Weak — 6.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-2.4%
Shrinking sales (-2.4% YoY)
Profit growth
EPS YoY
-63.6%
Earnings shrinking (-63.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
1194%
Turns 1194% of profit into real cash
Spare cash per sale
FCF Margin
10.0%
Modest free cash flow (10.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
1.15
Elevated debt (1.15)
Covers its interest
Interest Cover
1.96x
Dangerous — barely covers interest (2.0x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
14.1x
no trend
Attractive valuation — P/E 14.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+10.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (14.1 → 3.9)

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Dividends

Not applicable for this business.
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