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Update on DXC Technology

Why 1.1x sounds good to us...

Nov 19, 2020

This is a quick update on DXC Technology. Please see our previous report here.

Do take note that the pricing of the counter have moved up substantially from our average entry price of USD 17.12. Yes, we have been averaging up our average price.

We are hopeful that the transformation is happening right now and we had reached our allocated positioning size. To see our 20203Q portfolio, please click here.

This position forms part of our Special Situation portfolio.

A few happenings and observation that is encouraging.

Ken Sharp has been appointed executive vice president and chief financial officer
There will be no more sales of additional business units, all subsidiaries earmarked for sale and had not been sold will be kept and optimised within DXC
Book to Bill ratio is at 1.1x. Revenue is finally growing again.
Paid down USD 3.5b in debt through their sale of their U.S. State and Local Health and Human Services business for USD 5.0 b
On a adjusted basis, EBIT remain positive

Adjusted free cashflow remained positive

DXC seems to be past their worst woes. Our chat with some of DXC employee clearly indicate that transformation effort is working its way down into Asia as well.

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As usual, do hit the comment button below if you have questions for us.