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Hewlett Packard Enterprise Co HPE

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Stock XNYS Rating as of
$17.14 −0.12 (0.67%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Hewlett Packard Enterprise Is Increasing Its Networking Exposure but Still Has Not Earned a Moat

William Kerwin

Hewlett Packard Enterprise, or HPE, is a comprehensive IT hardware provider to large enterprises, supplying compute servers, storage arrays, and networking equipment. We don’t view HPE as a technology leader, nor do we see it as holding competitive advantages compared with peers. Nonetheless, HPE is a top-5 player across its core markets, and we expect it to maintain demand as data centers utilize hyperconverged infrastructure and enterprises opt for hybrid cloud approaches. We also believe investors may find its cash generation and subsequent returns to shareholders attractive.

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Price vs Fair Value

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HPE is trading at a 8% premium.
Price
$17.26
Fair Value
$17.00
Uncertainty
Medium
1-Star Price
$66.60
5-Star Price
$89.90
Economic Moat
Dxb
Capital Allocation
Rhycbjr

Bulls Say, Bears Say

Bulls

We view HPE as the leader among peers in offering its entire portfolio as-a-service, which could give it an advantage in winning customers and reduce cyclicality in the future.

Bears

HPE participates in commoditylike markets to earn most of its revenue, which offer slim profit margins and erode an economic moat.

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News

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Trading Information

Previous Close Price
$17.25
Day Range
$16.92–17.37
52-Week Range
$13.66–20.07
Bid/Ask
$17.13 / $17.14
Market Cap
$22.27 Bil
Volume/Avg
4.3 Mil / 16.3 Mil

Key Statistics

Price/Earnings (Normalized)
8.97
Price/Sales
0.84
Dividend Yield (Trailing)
2.78%
Dividend Yield (Forward)
2.89%
Total Yield
4.27%

Company Profile

Hewlett Packard Enterprise is an information technology vendor that provides hardware and software to enterprises. Its primary product lines are compute servers, storage arrays, and networking equipment; it also has a high-performance computing business. HPE’s stated goal is to be a complete edge-to-cloud company, and its portfolio enables hybrid clouds and hyperconverged infrastructure. It uses a primarily outsourced manufacturing model and employs 60,000 people worldwide.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Mid Value
Total Number of Employees
62,000
Website
https://www.hpe.com

Competitors

Valuation

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Metric
HPE
DELL
CSCO
Price/Earnings (Normalized)
 8.9717.3011.93
Price/Book Value
 1.09—4.31
Price/Sales
 0.841.033.51
Price/Cash Flow
 4.4211.5012.46
Price/Earnings
HPE
DELL
CSCO

Financial Strength

Metric
HPE
DELL
CSCO
Quick Ratio
 0.490.441.10
Current Ratio
 0.890.741.37
Interest Coverage
 10.543.3933.76
Quick Ratio
HPE
DELL
CSCO

Profitability

Metric
HPE
DELL
CSCO
Return on Assets (Normalized)
 4.66%6.17%17.02%
Return on Equity (Normalized)
 12.75%—38.38%
Return on Invested Capital (Normalized)
 8.37%24.55%30.59%
Return on Assets
HPE
DELL
CSCO
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