HEWLETT PACKARD ENTERPRISE (HPE) Fundamental Analysis & Valuation

NYSE:HPE • US42824C1099

21.55 USD
-0.09 (-0.42%)
At close: Mar 4, 2026
21.65 USD
+0.1 (+0.46%)
After Hours: 3/4/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This HPE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to HPE. HPE was compared to 36 industry peers in the Technology Hardware, Storage & Peripherals industry. While HPE is still in line with the averages on profitability rating, there are concerns on its financial health. HPE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

4

1. HPE Profitability Analysis

1.1 Basic Checks

  • HPE had positive earnings in the past year.
  • HPE had a positive operating cash flow in the past year.
  • Of the past 5 years HPE 4 years were profitable.
  • In the past 5 years HPE always reported a positive cash flow from operatings.
HPE Yearly Net Income VS EBIT VS OCF VS FCFHPE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

1.2 Ratios

  • HPE's Return On Assets of -0.08% is fine compared to the rest of the industry. HPE outperforms 63.89% of its industry peers.
  • HPE's Return On Equity of -0.24% is fine compared to the rest of the industry. HPE outperforms 72.22% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 2.80%, HPE is in the better half of the industry, outperforming 61.11% 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 16.73%.
Industry RankSector 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%
HPE Yearly ROA, ROE, ROICHPE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • HPE has a better Operating Margin (4.79%) than 66.67% of its industry peers.
  • HPE's Operating Margin has declined in the last couple of years.
  • HPE has a Gross Margin of 30.26%. This is comparable to the rest of the industry: HPE outperforms 52.78% of its industry peers.
  • HPE's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
HPE Yearly Profit, Operating, Gross MarginsHPE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. HPE Health Analysis

2.1 Basic Checks

  • HPE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, HPE has more shares outstanding
  • Compared to 5 years ago, HPE has more shares outstanding
  • The debt/assets ratio for HPE is higher compared to a year ago.
HPE Yearly Shares OutstandingHPE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
HPE Yearly Total Debt VS Total AssetsHPE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • HPE has an Altman-Z score of 0.81. This is a bad value and indicates that HPE is not financially healthy and even 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.
  • HPE has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as HPE would need 35.67 years to pay back of all of its debts.
  • HPE has a Debt to FCF ratio (35.67) which is comparable to the rest of the industry.
  • 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 RankSector Rank
Debt/Equity 0.72
Debt/FCF 35.67
Altman-Z 0.81
ROIC/WACC0.41
WACC6.91%
HPE Yearly LT Debt VS Equity VS FCFHPE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 1.01 indicates that HPE should not have too much problems paying its short term obligations.
  • HPE's Current ratio of 1.01 is on the low side compared to the rest of the industry. HPE is outperformed by 69.44% of its industry peers.
  • HPE has a Quick Ratio of 1.01. This is a bad value and indicates that HPE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of HPE (0.76) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 0.76
HPE Yearly Current Assets VS Current LiabilitesHPE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. HPE Growth Analysis

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.
  • Looking at the last year, HPE shows a quite strong growth in Revenue. The Revenue has grown by 13.84% in the last year.
  • The Revenue has been growing slightly by 4.91% on average over the past years.
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.
  • The Revenue is expected to grow by 7.54% on average over the next years.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HPE Yearly Revenue VS EstimatesHPE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
HPE Yearly EPS VS EstimatesHPE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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Find the best growth stocksShow best growing peers

7

4. HPE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.17 indicates a reasonable valuation of HPE.
  • Compared to the rest of the industry, the Price/Earnings ratio of HPE indicates a rather cheap valuation: HPE is cheaper than 91.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.03, HPE is valued rather cheaply.
  • HPE is valuated reasonably with a Price/Forward Earnings ratio of 9.02.
  • 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.
  • When comparing the Price/Forward Earnings ratio of HPE to the average of the S&P500 Index (25.11), we can say HPE is valued rather cheaply.
Industry RankSector Rank
PE 11.17
Fwd PE 9.02
HPE Price Earnings VS Forward Price EarningsHPE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPE is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 45.87
EV/EBITDA 10.35
HPE Per share dataHPE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

  • The 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)1.51
EPS Next 2Y19.73%
EPS Next 3Y17.1%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HPE Dividend Analysis

5.1 Amount

  • HPE has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
  • HPE's Dividend Yield is rather good when compared to the industry average which is at 0.65. HPE pays more dividend than 91.67% of the companies in the same industry.
  • HPE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.74%

5.2 History

  • The dividend of HPE has a limited annual growth rate of 4.91%.
  • HPE has paid a dividend for at least 10 years, which is 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
HPE Yearly Dividends per shareHPE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • The earnings of HPE are negative and hence is the payout ratio. HPE will probably not be able to sustain this dividend level.
  • 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%
HPE Yearly Income VS Free CF VS DividendHPE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

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HPE Fundamentals: All Metrics, Ratios and Statistics

HEWLETT PACKARD ENTERPRISE

NYSE:HPE (3/4/2026, 8:04:00 PM)

After market: 21.65 +0.1 (+0.46%)

21.55

-0.09 (-0.42%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)12-04
Earnings (Next)03-09
Inst Owners90.03%
Inst Owner Change-0.32%
Ins Owners0.39%
Ins Owner Change5.75%
Market Cap28.76B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts75.38
Price Target26.47 (22.83%)
Short Float %6.75%
Short Ratio5.2
Dividend
Industry RankSector Rank
Dividend Yield 2.74%
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)0.1%
PT rev (3m)-1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.28%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
Industry RankSector Rank
PE 11.17
Fwd PE 9.02
P/S 0.84
P/FCF 45.87
P/OCF 9.85
P/B 1.16
P/tB N/A
EV/EBITDA 10.35
EPS(TTM)1.93
EY8.96%
EPS(NY)2.39
Fwd EY11.09%
FCF(TTM)0.47
FCFY2.18%
OCF(TTM)2.19
OCFY10.15%
SpS25.7
BVpS18.5
TBVpS-4.08
PEG (NY)0.47
PEG (5Y)1.51
Graham Number28.34
Profitability
Industry RankSector 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 RankSector 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 Year108.39%
EBIT Next 3Y37.2%
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%.