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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength

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GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth

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» DELL's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

DELL Guru Trades in Q3 2013

Louis Moore Bacon 36,522 sh (New)
Murray Stahl 24,315 sh (New)
Steven Cohen 22,200 sh (New)
Mario Gabelli 5,033,387 sh (+117.58%)
Jim Simons 3,883,590 sh (+108.9%)
Yacktman Fund 9,272,000 sh (+44.04%)
Yacktman Focused Fund 8,180,000 sh (+43.51%)
Donald Yacktman 21,094,431 sh (+41.69%)
Paul Singer 30,176,807 sh (+34.42%)
Brian Rogers 16,500,000 sh (unchged)
Louis Moore Bacon 777,800 sh (unchged)
Francis Chou 2,500,000 sh (unchged)
PRIMECAP Management 200,000 sh (unchged)
Mason Hawkins Sold Out
Jean-Marie Eveillard Sold Out
Jeff Auxier Sold Out
David Abrams Sold Out
Carl Icahn Sold Out
Charles de Vaulx Sold Out
Jeremy Grantham 1,959,452 sh (-6.62%)
Richard Pzena 12,458,816 sh (-9.5%)
David Dreman 12,932 sh (-10.78%)
Arnold Schneider 557,705 sh (-11.82%)
Prem Watsa 520,000 sh (-94.21%)
» More
Q4 2013

DELL Guru Trades in Q4 2013

Brian Rogers 16,500,000 sh (unchged)
Richard Pzena Sold Out
Murray Stahl Sold Out
Prem Watsa Sold Out
Jim Simons Sold Out
David Dreman Sold Out
Louis Moore Bacon Sold Out
Yacktman Fund Sold Out
Mario Gabelli Sold Out
Arnold Schneider Sold Out
PRIMECAP Management Sold Out
Jeremy Grantham Sold Out
Francis Chou Sold Out
Steven Cohen Sold Out
Paul Singer Sold Out
Yacktman Focused Fund Sold Out
Donald Yacktman Sold Out
» More
Q1 2014

DELL Guru Trades in Q1 2014

Brian Rogers 16,500,000 sh (unchged)
» More
Q2 2014

DELL Guru Trades in Q2 2014

Brian Rogers 16,500,000 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with DELL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Yacktman Fund 2013-12-31 Sold Out 1.3%$13.83 - $13.86 $ 13.860%0
Donald Yacktman 2013-12-31 Sold Out 1.3%$13.83 - $13.86 $ 13.860%0
Yacktman Focused Fund 2013-12-31 Sold Out 1.3%$13.83 - $13.86 $ 13.860%0
Prem Watsa 2013-12-31 Sold Out 0.45%$13.83 - $13.86 $ 13.860%0
Mario Gabelli 2013-12-31 Sold Out 0.41%$13.83 - $13.86 $ 13.860%0
David Dreman 2013-12-31 Sold Out 0.02%$13.83 - $13.86 $ 13.860%0
PRIMECAP Management 2013-12-31 Sold Out $13.83 - $13.86 $ 13.860%0
David Abrams 2013-09-30 Sold Out 11.6%$12.66 - $13.88 $ 13.862%0
Carl Icahn 2013-09-30 Sold Out 9.5%$12.66 - $13.88 $ 13.862%0
Mason Hawkins 2013-09-30 Sold Out 4.7%$12.66 - $13.88 $ 13.862%0
Prem Watsa 2013-09-30 Reduce -94.21%4.52%$12.66 - $13.88 $ 13.862%520000
Yacktman Fund 2013-09-30 Add 44.04%0.4%$12.66 - $13.88 $ 13.862%9272000
Yacktman Focused Fund 2013-09-30 Add 43.51%0.39%$12.66 - $13.88 $ 13.862%8180000
Donald Yacktman 2013-09-30 Add 41.69%0.38%$12.66 - $13.88 $ 13.862%21094431
Mario Gabelli 2013-09-30 Add 117.58%0.22%$12.66 - $13.88 $ 13.862%5033387
Jean-Marie Eveillard 2013-09-30 Sold Out $12.66 - $13.88 $ 13.862%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Dell Inc

Francis Chou Comments on Dell Inc. - Mar 11, 2014

We had a small holding in Dell Inc. (DELL). It was trading at $10.13 on December 31, 2012. After a protracted battle, the founder Michael Dell (Trades, Portfolio) was able to buy out the shareholders at a price of $13.75 per share, plus a 13 cent special dividend.





From Franis Chou's 2013 letter to shareholders.



Check out Francis Chou latest stock trades

Mason Hawkins Comments on Dell - Feb 17, 2014

The shareholder approval of Dell (DELL)'s management buyout generated a positive return of 31% for 2013 in spite of the disappointing investment outcome. Philips gained 44% during the year. CEO Frans Van Houten and CFO Ron Wirahadiraksa completed a €2bn stock buyback at discounted prices, as well as delivered higher margins as planned. Philips' management team is pursuing additional cost reductions and believes the company has strong revenue and margin potential over the next two to three years in all three primary businesses: medical, lighting, and consumer lifestyle. They signaled their confidence in the future value growth of the business by announcing another €1.5bn share buyback.

From Mason Hawkins (Trades, Portfolio)' 2013 Longleaf Partners Fund management discussion.

Check out Mason Hawkins latest stock trades

Donald Yacktman Comments on Dell - Sep 09, 2013


Dell (DELL)’s shares fell modestly as the stock had been trading above the Dell Management takeover price and no new bidders appeared. We think the proposed management buyout is unattractive and are voting against it. Recently, we went on record supporting Carl Icahn and Southeastern Asset Management’s proposal to replace the board and offer a tender to shareholders who wish to sell.

Management at Dell has done a poor job at both business execution and capital allocation. It is sad that having frustrated investors with overpriced acquisitions, ill-timed share repurchase, poor corporate strategy and an accounting scandal that led to a settlement with the SEC, management jumped in to purchase the entire company, with the stock not far from a recent low. We believe other outside proposals would be of much greater benefit to shareholders. We recommend others reject the acquisition proposal and support the Icahn/Southeastern proposal.

From Donald Yacktman's second quarter 2013 commentary.
Check out Donald Yacktman latest stock trades

Mason Hawkins Comments on Dell - Aug 12, 2013

Over the last six months, our Dell (DELL) position remained a top contributor with the underlying stock appreciating 33%. In the recent quarter, the stock was a detractor, declining 6% as uncertainty increased over the outcome of the proposed management buyout. We continued to work with Carl Icahn to propose a better alternative for shareholders. Given his structure, flexibility, and capital, Icahn was in the best position to lead the development of an outcome that provided an attractive payout but allowed shareholders to remain owners and benefit from the company's transformation. We sold approximately half of our Dell shares to Icahn to enable him to construct a compelling alternative. Subsequent to quarterend, the Dell Board has extended the vote on the buyout offer three times as it became obvious that shareholders would not approve the deal. Prior to the third postponement, Michael Dell and Silver Lake increased their offer to $13.75 and included a special dividend of 13 cents plus the normal third quarter 8 cent dividend. Southeastern continues to oppose the offer and will work with Icahn Enterprises to ensure that Dell has the right leadership who will focus the company on its profitable and growing enterprise business while allowing long-term shareholders to participate in its long-term success.

From Mason Hawkins' semi-annual 2013 report.
Check out Mason Hawkins latest stock trades

Bill Nygren Comments on Dell - Apr 23, 2013

The Dell (DELL) situation hasn’t been as straightforward. Dell has been -- and continues to be -- a sizable position in several of our Funds. In our annual report for the year ended September 2012, we wrote about Dell as one of our worst performing holdings for the year. Investors were frustrated that its personal computer business, its biggest revenue generator, was in decline. We owned Dell because of its non-PC businesses, which appear to generate most of its profits, and because we believed that, at its market price, we were getting paid to own the declining PC business.

In February, private equity firm Silver Lake and Dell CEO Michael Dell offered to purchase all outstanding shares for $13.65 per share. Though that price was a nice premium to the year-end share price of $10.14, many of Dell’s long-term investors, including us, thought the offer should have been higher. Several of our shareholders expressed concern that we didn’t complain vocally enough in the press, as some of our peers did. Just because we aren’t talking publicly doesn’t mean we aren’t talking.

First, by the time we decide to invest in a company, we have already concluded that management and the board are likely to act in our interest. If we conclude otherwise, we simply walk away and move on to the next candidate for investment. Once we own a stock and believe we have a point of view that should be of interest to management or the board, we are not shy about communicating with them. Sometimes they can show us why we are wrong, sometimes they adopt our point of view. Most of the time, these are very friendly discussions among professionals who share the same goal – maximizing the value of our investment.

Occasionally, and thankfully not too often, we have important disagreements with management or the board. If we conclude they are not trying to maximize value, we usually sell our stock and reinvest in a different undervalued company. Every once in a while, the undervaluation is too large to match in a new holding, so we end up in a public dispute with management. But our process is designed to minimize those situations.

In the case of Dell, we have shared our thoughts with the board, especially regarding the importance of conducting an open process so that all offers receive fair consideration. They completely agreed. So far, we are satisfied with how the special committee of directors is performing its task. We fully expect that it will seek out the best deal for its shareholders. Should that change, though we don’t expect it will, then and only then will you read what we’re concerned about in the press.

As I write this, two alternative acquisition proposals have been presented to Dell’s board, and the committee is reviewing them. We expect them to conclude, as we have, that an offer superior to Silver Lake’s offer has now been presented. Once that happens, Silver Lake will have an opportunity to outbid the new offer. Though we are probably in the late innings of our Dell ownership, we don’t think the game is quite over yet.

From Bill Nygren's first quarter 2013 commentary.
Check out Bill Nygren latest stock trades

Wallace Weitz Comments on DELL - Apr 11, 2013

Michael Dell’s bid to take Dell (DELL) private sparked a sharp rise in Dell shares. The stock, which had languished in the $8-10 range last fall, rose above the $13.65 takeover bid price. The proposal met with a firestorm of resistance from some long-time holders, but as the required analysis shifted from long-term business fundamentals to merger arbitrage, we were content to sell at a slight premium to the initial bid.

From Wallace Weitz's first quarter letter to shareholders.


Check out Wallace Weitz latest stock trades

Top Ranked Articles about Dell Inc

Francis Chou Comments on Dell Inc.
We had a small holding in Dell Inc. (DELL). It was trading at $10.13 on December 31, 2012. After a protracted battle, the founder Michael Dell (Trades, Portfolio) was able to buy out the shareholders at a price of $13.75 per share, plus a 13 cent special dividend. Read more...
Mason Hawkins Comments on Dell
The shareholder approval of Dell (DELL)'s management buyout generated a positive return of 31% for 2013 in spite of the disappointing investment outcome. Philips gained 44% during the year. CEO Frans Van Houten and CFO Ron Wirahadiraksa completed a €2bn stock buyback at discounted prices, as well as delivered higher margins as planned. Philips' management team is pursuing additional cost reductions and believes the company has strong revenue and margin potential over the next two to three years in all three primary businesses: medical, lighting, and consumer lifestyle. They signaled their confidence in the future value growth of the business by announcing another €1.5bn share buyback. Read more...
Carl Icahn Eyes Next Target with 13% Stake in Hologic
After shaking up Dell (DELL) and Apple (AAPL) this year, billionaire investor Carl Icahn has set his sights on his next target: Hologic Inc. (HOLX). Icahn reported today in a 13D activist filing with the SEC that he has taken a 12.63% stake in the company, equal to 34,154,879 shares, costing in aggregate $285.4 million. Read more...
Weekly CEO Sells Highlight: Dell Inc., Springleaf Holdings Inc., Delta Air Lines Inc., eBay Inc.
According to GuruFocus Insider Data, these are the largest CEO sales during the past week: Dell Inc., Springleaf Holdings Inc., Delta Air Lines Inc. and eBay Inc. Read more...
Guru Real Time Transactions Highlight
The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. We saw notable real time activity from Mario Gabelli, Edward Lampert and Mason Hawkins. Read more...
Donald Yacktman Comments on Dell
Dell (DELL)’s shares fell modestly as the stock had been trading above the Dell Management takeover price and no new bidders appeared. We think the proposed management buyout is unattractive and are voting against it. Recently, we went on record supporting Carl Icahn and Southeastern Asset Management’s proposal to replace the board and offer a tender to shareholders who wish to sell.

Management at Dell has done a poor job at both business execution and capital allocation. It is sad that having frustrated investors with overpriced acquisitions, ill-timed share repurchase, poor corporate strategy and an accounting scandal that led to a settlement with the SEC, management jumped in to purchase the entire company, with the stock not far from a recent low. We believe other outside proposals would be of much greater benefit to shareholders. We recommend others reject the acquisition proposal and support the Icahn/Southeastern proposal.

From Donald Yacktman's second quarter 2013 commentary. Read more...
Carl Icahn's Top 3 Second Quarter Portfolio Increases
Activist investor Carl Icahn spent most of his second quarter increasing his position in Dell, but the guru also increased his position in five other companies and significantly reduced his position in one. Read more...
Carl Icahn Buys Large Apple Position, Pressures for Share Buybacks
At 77, Carl Icahn is proving his savvy with social media. In his 12 total tweets he has used his new Twitter account to report some major events relating to his dealings with Dell (DELL) and make other remarks on investing using his own brand of acerbic wit. But today’s two tweets made perhaps the biggest splash yet: Reported approximately one hour ago, Icahn has taken a major stake in Apple (AAPL) and has been in contact with CEO Tim Cook. Read more...
Mason Hawkins Comments on Dell
Over the last six months, our Dell (DELL) position remained a top contributor with the underlying stock appreciating 33%. In the recent quarter, the stock was a detractor, declining 6% as uncertainty increased over the outcome of the proposed management buyout. We continued to work with Carl Icahn to propose a better alternative for shareholders. Given his structure, flexibility, and capital, Icahn was in the best position to lead the development of an outcome that provided an attractive payout but allowed shareholders to remain owners and benefit from the company's transformation. We sold approximately half of our Dell shares to Icahn to enable him to construct a compelling alternative. Subsequent to quarterend, the Dell Board has extended the vote on the buyout offer three times as it became obvious that shareholders would not approve the deal. Prior to the third postponement, Michael Dell and Silver Lake increased their offer to $13.75 and included a special dividend of 13 cents plus the normal third quarter 8 cent dividend. Southeastern continues Read more...
Icahn Takes 16% Stake in Nuance Communications
Carl Icahn has been a busy man this week. Along with purchasing 4 million additional shares of Dell (DELL), the outspoken guru upped his position in Nuance Communications (NUAN) by over 50% as reported by GuruFocus Real Time Picks. Read more...

Ratios

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Dividend & Buy Back

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Dividend Yield 2.31
DELL's Dividend Yield is ranked higher than
67% of the 1669 Companies
in the Global Computer Systems industry.

( Industry Median: 1.64 vs. DELL: 2.31 )
DELL' s 10-Year Dividend Yield Range
Min: 0   Max: 0
Current: 2.31

Dividend Payout 0.73
DELL's Dividend Payout is ranked higher than
78% of the 2657 Companies
in the Global Computer Systems industry.

( Industry Median: 9999.00 vs. DELL: 0.73 )
DELL' s 10-Year Dividend Payout Range
Min: 0   Max: 0
Current: 0.73

Yield on cost (5-Year) 2.31
DELL's Yield on cost (5-Year) is ranked lower than
122% of the 1708 Companies
in the Global Computer Systems industry.

( Industry Median: 1.80 vs. DELL: 2.31 )
DELL' s 10-Year Yield on cost (5-Year) Range
Min: 0   Max: 0
Current: 2.31

Valuation & Return

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Business Description

Industry: Computer Hardware » Computer Systems
Compare:AAPL, HPQ, LNVGY, NIPNF, SSYS » details
Traded in other countries:DLCA.Germany
Dell Inc is a Delaware Corporation, which was founded in 1984. The Company offers a range of technology solutions, including servers and networking products, storage products, services, software and peripherals, mobility products, and desktop PCs. The Company sells its products and services directly to customers through dedicated distribution channels, such as retailers, distributors, and resellers. Its business segments are Large Enterprise, Public, Small and Medium Business ('SMB'), and Consumer. Large Enterprise customers include large global and national corporate businesses. Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. SMB segment is focused on helping small and medium-sized businesses get the most out of their technology by offering scalable products, services, and solutions. Consumer segment is focused on delivering what customers want from the total technology experience of entertainment, mobility, gaming, and design. The Company designs, develops, manufactures, markets, sells, and supports a range of products, solutions, and services. The Company also provides various customer financial services to its Commercial and Consumer customers. Its enterprise solutions include servers, networking, and storage products. The Company's services include a range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The Company offers Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The Company also sells a range of third-party software products, including operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in various other categories. Client Products offers a variety of mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, to its Commercial and Consumer customers. The Company offers or arranges various financing options and services for its Commercial and Consumer customers in the U.S. and Canada through Dell Financial Services ('DFS'). DFS offers a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-term financing to Commercial customers. The Company sells its products and services directly to customers and through various other sales distribution channels, such as retailers, third-party solution providers, system integrators, and third-party resellers. Its customers include large global and national corpora
» More Articles for DELL

Headlines

Articles On GuruFocus.com
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This Tech Company Endured the 90s Bubble and Managed to Stay on Top of the Market Mar 17 2014 
Francis Chou Comments on Dell Inc. Mar 11 2014 
IBM Adjusts Its Portfolio Amid Shrinking Revenues Feb 20 2014 
Mason Hawkins Comments on Dell Feb 17 2014 
Longleaf Partners Fund Management Discussion for Fourth Quarter 2013 Feb 17 2014 
Apple’s Board Asks Shareholders to Reject Carl Icahn’s Newest Proposal and CEO Tim Cook Drops Sh Dec 31 2013 
Apple: Supporting Carl Icahn Dec 15 2013 

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