Hewlett Packard Enterprise Co., headquartered in Spring, Texas, offers IT solutions across five segments and employs 62,000 staff. The company went public on October 19, 2015.
Based on our analysis, Hewlett Packard Enterprise Company (HPE) is rated as undervalued with a score of 4 out of 5 stars. Several key financial ratios highlight HPE's strong performance relative to its sector, indicating potential for growth.
The price-to-earnings (P/E) ratio for HPE stands at 10.88, significantly lower than the sector average of 26.31. A lower P/E ratio suggests that the company's stock may be undervalued compared to its earnings, making it an attractive option for investors looking for bargains.
HPE's price-to-book (P/B) ratio is 1.02, compared to the sector average of 3.19. This indicates that HPE’s stock is trading close to its book value, suggesting that the market may not fully recognize the company's asset value.
Additionally, HPE boasts a net profit margin of 8.56%, while the sector averages a negative margin of -17.86%. This indicates that HPE is more efficient in converting revenue into profit, positioning it strongly within its industry.
The company’s return on equity (ROE) is 10.39%, compared to the sector's -25.04%, signifying effective utilization of shareholder equity to generate profits. Furthermore, HPE offers a dividend yield of 2.41%, which is significantly higher than the sector average of 0.10%, providing shareholders with a steady income stream.
Lastly, HPE's return on assets (ROA) ratio is 3.62%, whereas the sector shows a negative -13.90%. This demonstrates HPE’s ability to efficiently use its assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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