HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HPE • US42824C1099
23.545 USD
-0.42 (-1.77%)
Last: Feb 11, 2026, 10:21 AM
HPE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HPE.
1. Profitability
1.1 Basic Checks
- HPE had positive earnings in the past year.
- In the past year HPE had a positive cash flow from operations.
- HPE had positive earnings in 4 of the past 5 years.
- HPE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.08%, HPE is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
- HPE's Return On Equity of -0.24% is fine compared to the rest of the industry. HPE outperforms 74.29% of its industry peers.
- HPE has a better Return On Invested Capital (2.80%) than 65.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HPE is significantly below the industry average of 16.39%.
| 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 Operating Margin of 4.79%. This is in the better half of the industry: HPE outperforms 68.57% of its industry peers.
- HPE's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 30.26%, HPE perfoms like the industry average, outperforming 54.29% of the companies in the same 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HPE is destroying value.
- Compared to 1 year ago, HPE has more shares outstanding
- Compared to 5 years ago, HPE has more shares outstanding
- HPE has a worse debt/assets ratio than last year.
2.2 Solvency
- HPE has an Altman-Z score of 0.85. This is a bad value and indicates that HPE is not financially healthy and even has some risk of bankruptcy.
- HPE's Altman-Z score of 0.85 is in line compared to the rest of the industry. HPE outperforms 48.57% of its industry peers.
- 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 51.43% 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.
- HPE's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. HPE outperforms 51.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.39
WACC7.1%
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.
- HPE has a Current ratio of 1.01. This is in the lower half of the industry: HPE underperforms 65.71% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- HPE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.53%.
- HPE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- The Revenue has grown by 13.84% in the past year. This is quite good.
- 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
- HPE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.81% yearly.
- 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
- HPE is valuated correctly with a Price/Earnings ratio of 12.20.
- 94.29% of the companies in the same industry are more expensive than HPE, based on the Price/Earnings ratio.
- HPE is valuated cheaply when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.85, which indicates a very decent valuation of HPE.
- Based on the Price/Forward Earnings ratio, HPE is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of HPE to the average of the S&P500 Index (27.97), we can say HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
- HPE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HPE is cheaper than 82.86% of the companies in the same industry.
- HPE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.55 | ||
| EV/EBITDA | 11.01 |
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)0.51
PEG (5Y)1.65
EPS Next 2Y19.73%
EPS Next 3Y17.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.51%, HPE has a reasonable but not impressive dividend return.
- HPE's Dividend Yield is rather good when compared to the industry average which is at 0.66. HPE pays more dividend than 91.43% of the companies in the same industry.
- HPE's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
5.3 Sustainability
- HPE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of HPE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1349.15%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
NYSE:HPE (2/11/2026, 10:21:08 AM)
23.545
-0.42 (-1.77%)
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)03-03 2026-03-03/amc
Inst Owners90.03%
Inst Owner Change-1.77%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap31.07B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target26.62 (13.06%)
Short Float %6.41%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)0.66%
PT rev (3m)-0.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.36%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-6.03%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.85 | ||
| P/S | 0.91 | ||
| P/FCF | 49.55 | ||
| P/OCF | 10.64 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.01 |
EPS(TTM)1.93
EY8.2%
EPS(NY)2.39
Fwd EY10.15%
FCF(TTM)0.48
FCFY2.02%
OCF(TTM)2.21
OCFY9.4%
SpS25.99
BVpS18.71
TBVpS-4.13
PEG (NY)0.51
PEG (5Y)1.65
Graham Number28.5
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 | 0.85 |
F-Score4
WACC7.1%
ROIC/WACC0.39
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%.