DXC
DXC Technology Company
TMT
04/11/2016
Presented
| Date | 04/05/2016 |
| Price | $33.21 |
| Market Cap | $4.69B |
| Ent Value | $5.39B |
| P/E Ratio | 12.35x |
| Book Value | $15.96 |
| Div Yield | 1.69% |
| Shares O/S | 141.18M |
| Ave Daily Vol | 1,835,738 |
| Short Int | 3.78% |
Current
| Price | $20.37 |
| Market Cap | $3.68B |
| DXC Technology Company provides information technology solutions. It operates through three business segments: Global Business Services, Global Infrastructure Services and North American Public Sector. The Global Business Services segment provides technology solutions including consulting, applications services, and software. The Global Infrastructure Services segment provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cyber security, cloud solutions, cloudmail and storage as a Service, compute and managed storage solutions. The American Public Sector segment offers information technology, mission, and operations-related services to the department of defense, civil agencies of the U.S. federal government, as well as state and local government agencies. Computer Sciences was founded by Roy Nutt and Fletcher Roseberry Jones on April 16, 1959 and is headquartered in Falls Church, VA. |
On April 3, 2017 Hewlett Packard Enterprise (HPE) announced that it successfully completed the separation of its Enterprise Services business, and merged it with Computer Sciences Corporation (CSC) to create DXC Technology (DXC).
Public companies mentioned herein: Computer Sciences Corp (CSC), Accenture (ACN), IBM (IBM) and Cognizant (CTSH).
Highlights
The presenter noted that he previously owned shares of Computer Sciences Corp, buying the stock in the mid $20s before ultimately selling in the mid $60s. The IT services company went on to spin out its government business in November of last year, providing the presenter’s firm with another opportunity to invest in a solid management team. CSC competes with companies including Accenture (ACN), IBM (IBM) and Cognizant (CTSH). The presenter acknowledged that the remaining business is not particularly attractive, but he stressed that at its current cheap valuation the only thing that matters is whether earnings will grow or shrink from here. The presenter for his part believes that EPS is poised to grow, and he additionally sees M&A optionality; with the government business now separated from CSC’s core business, he believes the company could eventually be sold outright.
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