DXC

DXC Technology Company

TMT


Presented:12/10/2015
Price:$14.72
Cap:$26.47B
Current Price:$20.37
Cap:$3.68B

Presented

Date12/10/2015
Price$14.72
Market Cap$26.47B
Ent Value$25.35B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S1,798.22M
Ave Daily Vol14,017,169
Short Int4.39%

Current

Price$20.37
Market Cap$3.68B
DXC Technology Company is the provider of technology solutions customers need to optimize their traditional information technology while helping them build the secure, cloud-enabled, mobile-ready future that is suited to their needs. It offers servers, storage, networking, converged systems, software and services, combined with its financing solutions. The company operates its business through five segments: Enterprise Group, Software, Enterprise Services, Hewlett Packard Financial Services and Corporate Investments. The Enterprise Group segment provides technology infrastructure. The Software segment automate information technology operations to simplify, accelerate and secure business processes and drives the analytics that turn raw data into actionable knowledge. The Enterprise Services provides consulting and support professionals to deliver superior, comprehensive results. The Hewlett Packard Financial Services segment provides financial architectures and investment solutions for its customers. The Corporate Investments segment includes its Labs and certain business incubation projects, among others. Hewlett Packard Enterprise was founded on November 2, 2015 and is headquartered in Palo Alto, CA.

On April 3, 2017 Hewlett Packard Enterprise (HPE) announced that it successfully completed the separation of its Enterprise Services business, and merged it with Computer Sciences Corporation (CSC) to create DXC Technology (DXC).

Publicly traded companies mentioned herein: Hewlett Packard Enterprise Co (HPE), HP Inc (HPQ)

Highlights

The presenter is long shares of Hewlett Packard Enterprise (HPE), calling the current market valuation “very cheap” when looked at on a normalized free cash flow basis. He believes bear case scenarios overstate the amount of restructuring costs left, and thinks HPE’s margins will be better than Street estimates as a result. According to his thesis, shares will appreciate to $20 with “very basic” improvements in fundamental performance.

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Idea Discussion

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