DELL - Embedded Expectations Analysis - 2021 05 05
Dell Technologies Inc. (DELL:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.5x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about VMware revenue growth, employee benefit expenses, and hybrid cloud and services opportunitiesSpecifically, management may lack confidence in their ability to sustain CSG operating income growth, maintain VMware's record quarterly revenue performance, and manage employee benefits efficiently. Furthermore, they may be overstating their business's resiliency through the pandemic as well as the remote learning capabilities of PowerStore, PowerScale, and PowerMax. Moreover, management may lack confidence in their ability to execute their core business strategy, sustain server business momentum, and continue expanding their total addressable market. Finally, they may lack confidence in their ability to pay down debt this year and further capture hybrid cloud and services market 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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