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As part of our ongoing series, each week we will focus on one of the stocks from our stock screeners, and take a look at why it’s a ‘buy’ based on key fundamentals. One of the cheapest stocks in our Stock Screeners is:

Dell Technologies Inc (DELL)

Dell Technologies is a broad information technology vendor, primarily supplying hardware to enterprises. It is focused on premium personal computers and enterprise on-premises data center hardware.

It holds top-three shares in its core markets of personal computers, peripheral displays, mainstream servers, and external storage. Dell is vertically integrated, but has a robust ecosystem of component and assembly partners, and it also relies heavily on channel partners to fulfill its sales.

A quick look at the share price history (below) over the past twelve months shows that the price is up 278.72%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

• Market cap: $126.34 billion
• Enterprise value: $145.76 billion

Operating Earnings

• Operating earnings: $5.98 billion

Acquirer’s Multiple

• Acquirer’s multiple: 24.38

Free Cash Flow (TTM)

• Free Cash Flow: $5.92 Billion

FCF/MC Yield Percentage

• FCF/MC yield: 4.69

Shareholder Yield Percentage

• Shareholder yield: 2.78

Other Indicators

• Piotroski F score: 7.00
• Dividend yield: 0.85
• ROA (five-year average percentage): 7

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