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

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$16.55 $0.27 (1.66%) HPE stock closing price Sep 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 2.7/5

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 Q3 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 price to earnings multiple of 12.3 is attractive when compared with the sector average PE ratio of 25.6.
  • The lower PS ratio 0.8 for HPE stock versus Computer and Technology sector average of 2.9 is a positive for the company.
  • Hewlett Packard Enterprises is a dividend paying stock with a high yield of 27.57.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Hewlett Packard Enterprises at 11.2.

Should you sell HPE stock?

  • Hewlett Packard Enterprises sales shrank by -24.6% year-over-year in 2018-04.
  • 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 0.3175 times net income which is a negative signal.
  • -4.9's negative ROIC of -4.9 indicates operational inefficiency.
  • The company has negative Free Cash Flows (FCF), with a negative FCF 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.