Rankings Tech hardware & optics Dell Technologies
Dell Technologies
76
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- Multiples vs own history and peers−22
- Cash flow and working capital−8
- Insider trading−4
Strengths
- Estimates+3
- Skin in the game+2
- Validation+1
How the score is built
From 100 to 76, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 392.78 USD
- Median analyst target
- 600.00 USD
- Upside to median
- +52.8%
- Analysts
- 29
- Target range
- 490.00 – 735.00 USD
- 52-week change
- +142%
- P/E (trailing)
- 22.9
- Forward P/E
- 13.9
- PEG
- 0.36
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−4 of −30
- −3Moat and marginThe gross margin has fallen from 23.9% (FY24) to 19.9% TTM because low-margin AI servers take up more. Servers are a competitive market (Supermicro, HPE, ODMs). The operating margin has still risen from 4.7% (FY22) to 9.9% TTM and was 12.6% non-GAAP in Q2, and ROIC has risen from 10.7% to 29.4%.
- −1Quality of growthGrowth (+58% in Q2) comes from AI servers (+100%) and traditional servers (+122%) on top of an AI capex cycle and rising memory prices. Revenue fell 14% in FY24, which shows how cyclical hardware is.
Price
Today's multiples against the company's own history and its peers. · 1 finding−22 of −35
- −22Multiples vs own history and peersForward P/E 19.3 vs 7.0–12.8 in FY22–26 (average 9.9; the previously cited 'average about 13' was the trailing average); trailing P/E 31.7 vs 7.7–18.0; EV/EBITDA 20.8 vs 5.9–9.6; P/S 2.3 vs 0.3–0.8; P/FCF 40. About double its own history for a hardware business with a 20% gross margin, and more expensive than Supermicro (forward P/E about 10).
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 6 findings−22 of −35
- −8Cash flow and working capitalTTM, inventory rose $14.3bn and receivables $7.9bn, while payables rose $22.3bn. FCF of $8.6bn therefore rests on paying suppliers later. In Q2 operating cash flow was only $2.2bn on $47bn of revenue.
- −3Customer concentrationThe $95bn AI backlog (+$43.7bn in one quarter) sits with a few large AI customers (including xAI and CoreWeave); the share of the largest customers is not disclosed.
- −2DebtNet debt $23.6bn (debt $35.3bn vs cash $11.6bn), current ratio 0.96 and Altman Z 2.26. Net debt/EBITDA has fallen from 2.4 (FY23) to 1.3, though.
- −4Insider tradingSilver Lake entities sold continuously in June, July and 3–11/9 (including $44.7m on 3/9 and $23.2m on 11/9 from one fund alone), and board member Egon Durban sold $19.5m on 4/9 plus smaller amounts. New sales were filed on 14/9 and 17/9. No insider buying found.
- −1GovernanceAn ERISA class action from January 2026 is mentioned in the 10-Q; Michael Dell controls the votes through share classes.
- −4MacroRising memory prices push up component costs, and Gartner expects fewer PCs sold in 2026. PC sales (+20% in Q2) may have been pulled forward ahead of price increases. At the same time Dell depends on AI capex holding up.
Plus
Only documented strengths. · 3 findings+6 of +15
- +3EstimatesFY27 revenue guidance raised by $25bn to $192bn (+69%) and non-GAAP EPS to $25.50 (+148%); the AI server forecast raised from $60bn to 74bn, and Q3 guided at $49bn (+81%).
- +2
- +1
Caveats
What the score does not capture, or where the data is weak.
Only about 6% upside to the median price target after +316% in one year; Morgan Stanley (Hold, $511) is below the price. Cash flow is held up by $22bn of higher supplier payables, while inventory and receivables have risen $22bn. Buybacks and dividends ($10.7bn TTM) exceed FCF ($8.6bn). Silver Lake keeps selling.
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