Hewlett Packard Enterprises Stock Analysis (NYSE:HPE)

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$23.67 $0.66 (2.87%) HPE stock closing price Mar 29, 2017 (Closing)
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Hewlett Packard Enterprises
Updated on : Mar 29, 2017
previous close
HPE 23.7 (0%)
NASDAQ 5897.6 (0%)
Closing Price On: Mar 29, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Integrated Systems
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
8.3%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
16.14B
Debt/Equity Ratio:
 0.51
Compared to the industry
Cash Flow
Operating cash flow:
$2.21B
Net Income:
$302M
Dividend Yield
HPE dividend yield:
1.06%
PROS      CONS
Operating Margins
Cash Flow
ROIC
ROE
FCF Margin
PE Valuation
Recent Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HPE PS :
0.8
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.5%
Return on Equity:
9.8%
Free Cash Flow Margin:
11.8%
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Hewlett Packard Enterprises Analysis Video

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View Hewlett Packard Enterprises stock analysis video. This is our HPE analyst opinion covering the buy and sell arguments for HPE stock.

Hewlett Packard Enterprise Co Stock Rating (3/5)

Our Hewlett Packard Enterprises stock opinion is based on fundamentals of the company. This Hewlett Packard Enterprises stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy HPE stock?

  • Hewlett Packard Enterprises had a healthy average operating margin of 8.3% over the last 4 quarters.
  • The company has an operating cash flow which is 7.3 times the net income.
  • The Hewlett Packard Enterprises stock currently trades at a price to earnings ratio of 12. We rate this as a positive, compared to the industry average of 25.7.
  • When compared with the Computer-Integrated Systems industry average PS ratio of 2.7, the price-to-sales ratio of 0.8 for HPE stock is attractive.
  • Hewlett Packard Enterprises's return on invested capital of 6.5% is good.
  • The LTM ROE of 9.8% for Hewlett Packard Enterprises is attractive.
  • Hewlett Packard Enterprises has a healthy FCF (Free Cash Flow) margin of 11.8%.

Should you sell HPE stock?

  • Hewlett Packard Enterprises revenue saw a decline of -7.2% YoY in 2016 Q4.
  • With a debt/equity ratio of  0.51, Hewlett Packard Enterprises is highly leveraged in comparison to Computer and Technology peers.

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