It may not be enough for some shareholders, but Dell Technologies, Inc. (NYSE:DELL) shares are up 14% in the quarter. But that doesn’t change the fact that last year’s returns were poor. The cold reality is that the stock has fallen 24% in his one year, underperforming the market.
Shareholders are falling for the long haul, so let’s look at the underlying fundamentals in the interim and see if they align with returns.
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The efficient market hypothesis continues to be taught by some, but it has been proven that markets are overly reactive dynamic systems and investors are not always rational. One way to see how market sentiment has changed over time is to look at the interaction between a company’s stock price and earnings per share (EPS).
Unfortunately, Dell Technologies reported a 65% decline in EPS last year. A 24% decline in the stock price is not as severe as the decline in earnings per share. So the market may not care too much about his EPS numbers at this point.
Here’s how the EPS changed over time (click the image to see the exact values).
Note that CEO salaries are lower than the median for companies of similar size. But while CEO compensation is always worth checking, the really important question is whether the company will be profitable going forward. It’s always a good idea to study historical growth trends before buying or selling stocks.
another point of view
Dell Technologies shareholders fell 22% over the year (even including dividends), failing to reach market returns. The market is down about 17% and is definitely weighing on stocks. Fortunately, the long-term story is brighter, with total returns averaging about 20% per year over his three years. The recent plunge could represent an opportunity if the business remains healthy, so it might be worth checking the fundamental data for signs of long-term growth trends. I find it very interesting to look at stock prices over the long term as an indicator of performance. But for true insight, other information must also be considered.For example, take risks – Dell Technologies 5 warning signs (and one that makes us a little uncomfortable) I think you should know.
If you want to check out another company – one with potentially great financials – don’t miss freedom A list of companies that have proven they can grow their revenue.
Please note that the market returns quoted in this article reflect market-weighted average returns for stocks currently traded on US exchanges.
What are the risks and opportunities Dell Technologies?
Dell Technologies Inc. designs, develops, manufactures, markets, sells and supports a variety of comprehensive and integrated solutions, products and services throughout the Americas, Europe, Middle East, Asia and internationally. .
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reward
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Traded 29.9% below estimated fair value
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Revenue is projected to grow 12.08% annually
risk
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Debt not fully covered by operating cash flow
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Negative shareholders’ equity
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Profitability (1.7%) is lower than last year (5.6%)
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Temporary large-scale projects that affect business performance
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …