HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
NYSE:HPE • US42824C1099
21.37 USD
-0.02 (-0.09%)
At close: Feb 20, 2026
21.35 USD
-0.02 (-0.09%)
After Hours: 2/20/2026, 8:04:00 PM
HPE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 industry peers in the Technology Hardware, Storage & Peripherals industry. HPE has a medium profitability rating, but doesn't score so well on its financial health evaluation. HPE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year HPE was profitable.
- HPE had a positive operating cash flow in the past year.
- Of the past 5 years HPE 4 years were profitable.
- Each year in the past 5 years HPE had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of -0.08%, HPE is doing good in the industry, outperforming 63.89% of the companies in the same industry.
- HPE has a Return On Equity of -0.24%. This is in the better half of the industry: HPE outperforms 72.22% of its industry peers.
- With a decent Return On Invested Capital value of 2.80%, HPE is doing good in the industry, outperforming 63.89% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HPE is significantly below the industry average of 16.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROIC | 2.8% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
1.3 Margins
- HPE has a better Operating Margin (4.79%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of HPE has declined.
- HPE has a Gross Margin (30.26%) which is comparable to the rest of the industry.
- HPE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% |
OM growth 3Y-15.03%
OM growth 5Y-4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.2%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HPE is destroying value.
- Compared to 1 year ago, HPE has more shares outstanding
- HPE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HPE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.81, we must say that HPE is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.81, HPE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- The Debt to FCF ratio of HPE is 35.67, which is on the high side as it means it would take HPE, 35.67 years of fcf income to pay off all of its debts.
- HPE's Debt to FCF ratio of 35.67 is in line compared to the rest of the industry. HPE outperforms 52.78% of its industry peers.
- HPE has a Debt/Equity ratio of 0.72. This is a neutral value indicating HPE is somewhat dependend on debt financing.
- The Debt to Equity ratio of HPE (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.41
WACC6.91%
2.3 Liquidity
- HPE has a Current Ratio of 1.01. This is a normal value and indicates that HPE is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of HPE (1.01) is worse than 69.44% of its industry peers.
- A Quick Ratio of 0.76 indicates that HPE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.76, HPE is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The earnings per share for HPE have decreased by -2.53% in the last year.
- The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
- HPE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.84%.
- HPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
3.2 Future
- Based on estimates for the next years, HPE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.81% on average per year.
- Based on estimates for the next years, HPE will show a small growth in Revenue. The Revenue will grow by 7.54% on average per year.
EPS Next Y23.8%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
EPS Next 5Y15.81%
Revenue Next Year18.19%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y7.54%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.07, the valuation of HPE can be described as very reasonable.
- Based on the Price/Earnings ratio, HPE is valued cheaper than 91.67% of the companies in the same industry.
- HPE is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- HPE is valuated reasonably with a Price/Forward Earnings ratio of 8.94.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HPE indicates a rather cheap valuation: HPE is cheaper than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaper than 86.11% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HPE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.48 | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
- HPE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as HPE's earnings are expected to grow with 17.10% in the coming years.
PEG (NY)0.47
PEG (5Y)1.49
EPS Next 2Y19.73%
EPS Next 3Y17.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.66%, HPE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.66, HPE pays a better dividend. On top of this HPE pays more dividend than 91.67% of the companies listed in the same industry.
- HPE's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- The dividend of HPE has a limited annual growth rate of 4.91%.
- HPE has been paying a dividend for at least 10 years, so it has a reliable track record.
- HPE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.91%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
- HPE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1349.15%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
21.37
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)12-04 2025-12-04/amc
Earnings (Next)03-09 2026-03-09/amc
Inst Owners90.03%
Inst Owner Change-0.34%
Ins Owners0.39%
Ins Owner Change2.92%
Market Cap28.52B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts75.38
Price Target26.62 (24.57%)
Short Float %7.13%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.61
Dividend Growth(5Y)4.91%
DP-1349.15%
Div Incr Years2
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.29%
Min EPS beat(2)1.17%
Max EPS beat(2)5.42%
EPS beat(4)3
Avg EPS beat(4)5.16%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.21%
EPS beat(12)11
Avg EPS beat(12)5.87%
EPS beat(16)13
Avg EPS beat(16)5.01%
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)6.06%
Revenue beat(4)2
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.04%
PT rev (1m)0.68%
PT rev (3m)-0.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.18%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 8.94 | ||
| P/S | 0.83 | ||
| P/FCF | 45.48 | ||
| P/OCF | 9.77 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.3 |
EPS(TTM)1.93
EY9.03%
EPS(NY)2.39
Fwd EY11.18%
FCF(TTM)0.47
FCFY2.2%
OCF(TTM)2.19
OCFY10.24%
SpS25.7
BVpS18.5
TBVpS-4.08
PEG (NY)0.47
PEG (5Y)1.49
Graham Number28.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROCE | 3.21% | ||
| ROIC | 2.8% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 9.35% | ||
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% | ||
| FCFM | 1.83% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
ROICexc(3y)5.61%
ROICexc(5y)5.73%
ROICexgc(3y)14.25%
ROICexgc(5y)14.22%
ROCE(3y)5.21%
ROCE(5y)5.58%
ROICexgc growth 3Y-15.86%
ROICexgc growth 5Y-2.73%
ROICexc growth 3Y-20.88%
ROICexc growth 5Y-6.13%
OM growth 3Y-15.03%
OM growth 5Y-4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.2%
GM growth 5Y-0.73%
F-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 83.74% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.81 |
F-Score4
WACC6.91%
ROIC/WACC0.41
Cap/Depr(3y)94.72%
Cap/Depr(5y)101.28%
Cap/Sales(3y)8.08%
Cap/Sales(5y)8.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
EPS Next Y23.8%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
EPS Next 5Y15.81%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year18.19%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y7.54%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year114.21%
EBIT Next 3Y38%
EBIT Next 5Y19.53%
FCF growth 1Y-68.24%
FCF growth 3Y-24.74%
FCF growth 5YN/A
OCF growth 1Y-32.76%
OCF growth 3Y-14.02%
OCF growth 5Y5.44%
HEWLETT PACKARD ENTERPRISE / HPE FAQ
What is the fundamental rating for HPE stock?
ChartMill assigns a fundamental rating of 4 / 10 to HPE.
What is the valuation status of HEWLETT PACKARD ENTERPRISE (HPE) stock?
ChartMill assigns a valuation rating of 7 / 10 to HEWLETT PACKARD ENTERPRISE (HPE). This can be considered as Undervalued.
What is the profitability of HPE stock?
HEWLETT PACKARD ENTERPRISE (HPE) has a profitability rating of 4 / 10.
How financially healthy is HEWLETT PACKARD ENTERPRISE?
The financial health rating of HEWLETT PACKARD ENTERPRISE (HPE) is 2 / 10.
How sustainable is the dividend of HEWLETT PACKARD ENTERPRISE (HPE) stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (HPE) is 6 / 10 and the dividend payout ratio is -1349.15%.