Hewlett Packard Enterprises Stock Analysis, Valuation (NYSE:HPE)

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$17.51 $0.05 (0.28%) HPE stock closing price May 21, 2018 (Closing)
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Hewlett Packard Enterprises
Updated on : May 21, 2018
previous close
HPE 17.5 (0%)
NASDAQ 7394 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Integrated Systems
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
1.3%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
13.89B
Debt/Equity Ratio:
 0.58
Compared to the industry
Cash Flow
Operating cash flow:
$142M
Net Income:
$1.44B
Dividend Yield
HPE dividend yield:
58.71%
PROS      CONS
High Dividend Yield
PE Valuation
PS Valuation
Recent Growth
High Debt Burden
Cash Flow
ROIC
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HPE PS :
0.8
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-2.2%
Return on Equity:
5.5%
Free Cash Flow Margin:
-5.4%
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HPE Stock Analysis

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Investors can watch the Amigobulls Hewlett Packard Enterprises stock analysis video here. This is our analyst opinion covering the buy and sell arguments for HPE stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Hewlett Packard Enterprise Co Stock Rating 2.4/5

Amigobulls HPE stock analysis takes into account various financial ratios like relative valuation, Hewlett Packard Enterprises revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Hewlett Packard Enterprises dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Hewlett Packard Enterprises valuation analysis. Our Hewlett Packard Enterprises stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy HPE stock?

  • HPE stock is trading at an earnings multiple of 14.7 which is better than the industry average of 25.1.
  • When compared with the Computer-Integrated Systems industry average PS ratio of 2.9, the price-to-sales ratio of 0.8 for HPE stock is attractive.
  • Hewlett Packard Enterprises's dividend yield of 58.71% is attractive.

Should you sell HPE stock?

  • Hewlett Packard Enterprises sales shrank by -32.7% year-over-year in 2018 Q1.
  • Hewlett Packard Enterprises has a debt/equity ratio of  0.58, which is worse than the average in the Computer and Technology sector.
  • Cash flow from operations is 0.1 times net income which is a negative signal.
  • Hewlett Packard Enterprises has a negative ROIC (Return on Invested Capital) of -2.2%.
  • Hewlett Packard Enterprises has a negative FCF (Free Cash Flow) margin of -5.4%.

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Comments on this video and Hewlett Packard Enterprises stock

Amigobulls Hewlett Packard Enterprises stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of HPE stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Hewlett Packard Enterprises revenue growth and profit or net income are two main metrics which help in identifying whether HPE stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Hewlett Packard Enterprises stock.