DELL - Embedded Expectations Analysis - 2020 08 24
Dell Technologies Inc. (DELL:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with a 10.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about revenue, demand, and bad debtsSpecifically, management may have concerns about further weakness in consolidated net income and consumer revenue. In addition, they may be downplaying concerns about their weak cash generation in Q1, and significant bad debt dynamics. Furthermore, they may be concerned about the potential of their hybrid cloud technologies and traditional infrastructure and the sustainability of the current demand environment. Additionally, management may lack confidence in their ability to grow EPS faster than revenue, achieve investment-grade credit ratings, and protect their business. Finally, they may lack confidence in their ability to sustain excellence in engineering, and capitalize on artificial intelligence and machine learning opportunities
Dell Technologies is a holding company. Through its subsidiaries, the company designs, develops, manufactures, markets, sells, and supports a range of products and services. The company's reportable segments are: Infrastructure Solutions Group, which includes servers, networking, and storage, as well as services and third-party software and peripherals; Client Solutions Group, which includes desktops, thin client products, and notebooks, as well as services and third-party software and peripherals; and VMware, which provides compute, cloud management, networking and security, storage and availability, and other end-user computing offerings.
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