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Dell

Published:25 April 2022 13:33 CET

Analyst:

Stephan Jöhri, CTO, stephan.joehri@adviscent.com, +41 1111111

Investment Case

The investment case for Dell Inc. can be evaluated by considering various factors that influence its financial performance, growth prospects, and competitive position in the market. Here are some key aspects to consider when making an investment case for Dell:

Strong Market Presence: Dell is a well-established and recognized brand in the global technology industry. The company has a long history of providing hardware, software, and services to a diverse range of customers, including businesses, government agencies, and consumers.
Diversified Product Portfolio: Dell offers a wide range of products, including laptops, desktops, servers, storage solutions, and networking equipment. This diversity allows the company to cater to different market segments and adapt to changing consumer preferences

Performance

Facts & Figures

General Information
ISIN	US24703L2025
Bloomberg Ticker	DELL US
Price (USD)	-
Market Cap (USD m)	32,457
Free float (%)	97.07
Net debt	36,006
Gearing	448.67
ROE	150.6
Next reporting date	23.11.2021

Valuation	2024	2025	2026
P/E (USD m)	-	-	-
EV/EBITDA (USD m)	-	-	-
P/B (USD m)	-	-	-
Dividend Yield (USD m)	-	-	-

Financial Data	2024	2025	2026
Revenue (USD m)	-	-	-
EBITDA (USD m)	-	-	-
Net Profit (USD m)	-	-	-
EPS (USD)	-	-	-
Dividend (USD m)	-	-	-

Peer Group Comparison

Company name	Market cap (USD m)	P/E (Next 12 month) (USD m)	EV/EBITDA (Next 12 month) (USD m)	P/B (USD m)	Dividend yield (USD m)	EPS CAGR (3 years)	EBITDA margin	ROIC	Net debt/EBITDA
Dell Technologies Inc.	32,457	-	-	-	-	-	11.82	8.55	2.88
Apple	2,407,000	-	-	-	-	-	33.33	46.26	-0.45
Lenovo	80,045	-	-	-	-	-	-	-	-

Company details

Company Portrait

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) solutions, products, and services worldwide. The company operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware. The ISG segment provides traditional and next-generation storage solutions; and rack, blade, tower, and hyperscale servers. This segment also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; attached software and peripherals; and support and deployment, configuration, and extended warranty services.

The CSG segment provides desktops, workstations, and notebooks; displays and projectors; attached and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services.

The VMware segment supports customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces, helping customers to manage IT resource across private clouds and complex multi-cloud, multi-device environments. Dell Technologies Inc. also provides information security; and cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

Business Segments

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Geographic Segments

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Sustainability Assessment

Sustainability is a complex, multifaceted, evolving concept requiring a holistic and adaptive approach. Sustainability goals may need to be revised and expanded as our understanding of the challenges and solutions develops. Linear thinking implies a straightforward progression from one point to another, with clear steps and a fixed path. Sustainability goals often involve addressing interconnected social, environmental, and economic challenges, such as reducing greenhouse gas emissions, promoting renewable energy, conserving natural resources, improving social equity, and fostering economic growth. These interdependent goals often require simultaneous and coordinated actions across multiple sectors and stakeholders. A linear strategy may overlook the complexities and interdependencies involved in achieving sustainability. Instead, a more effective approach is to develop a comprehensive plan that is flexible and adaptable, allowing for adjustments and learning as new information and insights about changing circumstances, emerging technologies, and evolving societal expectations come to light.

Last week, for my TEQ podcast, I sat down with Cassandra Garber, Vice President of Corporate Sustainability and ESG at Dell Technologies, to discuss this need to balance rigor and flexibility as the company released its latest Environmental, Social and Governance (ESG) Report.

Important legal Information

Rating history

06.06.2022	Hold
11.12.2021	Attractive
11.12.2021	Hold
11.12.2021	Attractive
11.12.2021	Unattractive

* Positive performance in the past is no guarantee of positive performance in the future. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out.

General risk information

This publication is a financial analysis. This publication is intended only for your information purposes. It is not intended as an offer, solicitation of an offer, or public advertisement or recommendation to buy or sell any investment or other specific product. The publication addresses solely the recipient and may not be multiplied or published to third parties in electronic or any other form. The content of this publication has been developed by our staff of Bank (Switzerland) AG and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its correctness, completeness and up-to-date nature. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published information is therefore not be interpreted in a manner implying that since its publication no changes have taken place or that the information is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other matters of consultation, nor should any investment decisions or other decisions be made solely on the basis of this information. Advice from a qualified expert is recommended. Investors should be aware of the fact that the value of investments can decrease as well as increase. Therefore, a positive performance in the past is no guarantee of a positive performance in the future. The risk of exchange rate and foreign currency losses due to an unfavorable exchange rate development for the investor cannot be excluded. There is a risk that investors will not receive back the full amount they originally invested. Forecasts are not a reliable indicator of future performance. The commissions and costs charged on the issue and redemption of units are charged individually to the investor and are therefore not reflected in the performance shown. We disclaim, without limitation, all liability for any losses or damages of any kind, whether direct, indirect or consequential nature that may be incurred through the use of this publication. This publication is not intended for persons subject to a legislation that prohibits its distribution or makes its distribution contingent upon an approval. Persons in whose possession this publication comes, as well as potential investors, must inform themselves in their home country, country of residence or country of domicile about the legal requirements and any tax consequences, foreign currency restrictions or controls and other aspects relevant to the decision to tender, acquire, hold, exchange, redeem or otherwise act in respect of such investments, obtain appropriate adviceand comply with any restrictions. In line with internal guidelines, persons responsible for compiling this publication are free to buy, hold and sell the securities referred to in this publication.

Risk information for single stock/single bond recommendations

Responsibilities

Responsible for compilation: Bank (Switzerland) Ltd., Zurich, Switzerland. Responsible supervisory authority: Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Berne, Switzerland. Responsible for distribution within the meaning of article 8 FinMV [Financial Analysis Market Abuse Ordinance]: Bank Ltd. Responsible for distribution within the meaning of the Directives on the Independence of Financial Research from the Swiss Bankers Association (SBA): Bank (Switzerland) Ltd. Responsible supervisory authority: Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Berne, Switzerland.

Precautions for avoiding and dealing with conflicts of interest

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Reference regarding analysis history

If this analysis was made available to any issuers mentioned in the publication prior to its distribution or publication, no changes were made to the price or rating after the issuer’s feedback. Important references for Liechtenstein can be found in articles 3 to 6 FinMV [Financial Analysis Market Abuse Ordinance], for Switzerland in the Swiss Bankers Association Directives on the Independence of Financial Research, and for Austria in section 48 BörseG [Stock Exchange Act], the Austrian analysis principles of the Österreichische Vereinigung für Finanzanalyse und Asset Management [Austrian Association for Financial Analysis and Asset Management, ÖVFA] and the Austrian Society of Investment Professionals (ASIP) and the Standard Compliance Code of the Austrian banking sector. A history of all ratings and recommendations is available at your relationship manager.

Essential sources of information

Our analysts draw on publicly accessible information we consider to be reliable. For the compilation of the analysis, publications by domestic and foreign media and news services (e.g. Reuters, Bloomberg, VWD etc.), business publications, trade publications, statistics and rating agencies were used, together with information from the issuers of the analyzed securities – mainly via the Internet, but also in writing or by telephone. We also procure information from investment banks (sell-side research and primary research).

Reference regarding valuation rates

Unless otherwise stated or specified, the rates used in the analysis are normally the share prices provided by the news agencies Reuters and/or Bloomberg at the close of the stock exchange of the domestic market of the analyzed security or the relevant principal market of this security on the respective local stock exchange on the eve of the day of compilation.