Hewlett Packard Enterprise Co. (HPE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

One Stop Systems, Inc.

Dell Technologies, Inc.

Zebra Technologies Corp.

HP, Inc.

D-Wave Quantum, Inc.

Insight Enterprises, Inc.

Hewlett Packard Enterprise Co.

Synaptics, Inc.

Rigetti Computing, Inc.

IonQ, Inc.

Ebang International Holdings, Inc.

Why is Hewlett Packard Enterprise Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.28% over the last 5 years

Negative results in Jul 25

OPERATING CASH FLOW(Y) Lowest at USD 2,484 MM
INTEREST(Q) At USD 2 MM has Grown at inf%
NET PROFIT(Q) At USD 486 MM has Fallen at -37.8%

With ROCE of 7.14%, it has a fair valuation with a 1.00 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.51%, its profits have risen by 52.7% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hewlett Packard Enterprise Co. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hewlett Packard Enterprise Co.

5.24%

0.17

46.37%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.28%

EBIT Growth (5y)

4.84%

EBIT to Interest (avg)

7.50

Debt to EBITDA (avg)

2.03

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.80

Tax Ratio

15.06%

Dividend Payout Ratio

27.22%

Pledged Shares

Institutional Holding

96.19%

ROCE (avg)

7.06%

ROE (avg)

11.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.00

EV to EBIT

13.96

EV to EBITDA

6.48

EV to Capital Employed

1.00

EV to Sales

0.94

PEG Ratio

0.15

Dividend Yield

212.67%

ROCE (Latest)

7.14%

ROE (Latest)

13.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 62.41%

CASH AND EQV(HY)

Highest at USD 16,485 MM

NET SALES(Q)

Highest at USD 9,202 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,484 MM

INTEREST(Q)

At USD 2 MM has Grown at inf%

NET PROFIT(Q)

At USD 486 MM has Fallen at -37.8%

RAW MATERIAL COST(Y)

Grown by 7.22% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 77.68 %

PRE-TAX PROFIT(Q)

Lowest at USD 469 MM

Here's what is working for Hewlett Packard Enterprise Co.

Net Sales

Highest at USD 9,202 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 16,485 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 62.41%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 687 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Hewlett Packard Enterprise Co.

Pre-Tax Profit

At USD 469 MM has Fallen at -44.76%

over average net sales of the previous four periods of USD 849 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Interest

At USD 2 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 486 MM has Fallen at -37.8%

over average net sales of the previous four periods of USD 781.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 2,484 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD 469 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Highest at 77.68 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales