HPE
Hewlett Packard Enterprise Co
TMT
07/14/2016
Presented
| Date | 07/12/2016 |
| Price | $19.69 |
| Market Cap | $34.48B |
| Ent Value | $36.76B |
| P/E Ratio | N/A |
| Book Value | $18.35 |
| Div Yield | 0% |
| Shares O/S | 1,751.00M |
| Ave Daily Vol | 10,857,218 |
| Short Int | 3.38% |
Current
| Price | $20.74 |
| Market Cap | $26.93B |
| 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), Computer Sciences Corp (CSC) and HP Inc (HPQ).
Highlights
The presenter is long shares of HPE, which recently announced that it will spin out its enterprise services business and merge it with IT services firm Computer Sciences Corp (CSC) in a $8.5 billion transaction. In addition to providing HPE shareholders with a meaningful stake in the pro forma CSC, the deal should enable the company to reduce its net debt by around $4 billion. HPE currently trades at around $19 per share, but the CSC stake alone is likely worth around $4 per share; ex the CSC stake, HPE shares are therefore currently trading at around $15 per share, which the presenter regards as quite cheap. While there are a number of moving pieces to the story, a potential catalyst for shares would be the stabilization of the company’s high margin tech services business, which the company has guided for in the back half of the current year.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.