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

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$15.93 $0.27 (1.72%) HPE stock closing price Jul 18, 2018 (Closing)

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 Q2 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?

  • The Hewlett Packard Enterprises stock currently trades at a price to earnings ratio of 12.4, compared to the sector average of 26.4. We rate this as a positive.
  • When compared with the Computer and Technology sector average PS ratio of 3, the price-to-sales ratio of 0.8 for HPE stock is attractive.
  • The company has a healthy dividend yield of 27.31.
  • The LTM ROE of 11.2 for Hewlett Packard Enterprises is attractive.

Should you sell HPE stock?

  • Hewlett Packard Enterprises sales declined by -24.6% year on year in 2018-04.
  • With a debt/equity ratio of 0.58, Hewlett Packard Enterprises is highly leveraged in comparison to Computer and Technology peers.
  • The company has an operating cash flow which is 0.3175 times the net income. This is not a healthy sign.
  • The company has a negative Return on Invested Capital of -4.9, which is a red flag.
  • The company has a negative free cash flow margin of -3.6.

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.