HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HPE - US42824C1099 - Common Stock
21.985 USD
-0.3 (-1.37%)
We assign a fundamental rating of 4 out of 10 to HPE. HPE was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of HPE while its profitability can be described as average. HPE may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In the past 5 years HPE always reported a positive cash flow from operatings.
1.2 Ratios
- HPE has a better Return On Assets (-0.08%) than 65.71% of its industry peers.
- With a decent Return On Equity value of -0.24%, HPE is doing good in the industry, outperforming 77.14% of the companies in the same industry.
- HPE has a Return On Invested Capital of 2.80%. This is in the better half of the industry: HPE outperforms 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 16.06%.
| 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
- With a decent Operating Margin value of 4.79%, HPE is doing good in the industry, outperforming 65.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of HPE has declined.
- HPE's Gross Margin of 30.26% is in line compared to the rest of the industry. HPE outperforms 54.29% of its industry peers.
- In the last couple of years the Gross Margin of HPE has remained more or less at the same level.
| 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
- HPE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HPE has been increased compared to 1 year ago.
- Compared to 5 years ago, HPE has more shares outstanding
- Compared to 1 year ago, HPE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.82, we must say that HPE is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of HPE (0.82) is comparable to the rest of the 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 of 35.67. This is comparable to the rest of the industry: HPE outperforms 48.57% 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 has a Debt to Equity ratio of 0.72. This is comparable 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 | 0.82 |
ROIC/WACC0.4
WACC7.01%
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 62.86% 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.
- HPE has a Quick ratio (0.76) which 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
- The earnings per share for HPE have decreased by -2.53% in the last year.
- HPE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- 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.
- HPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.81%
Revenue Next Year18.14%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.39, the valuation of HPE can be described as very reasonable.
- HPE's Price/Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 94.29% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HPE to the average of the S&P500 Index (27.30), we can say HPE is valued rather cheaply.
- HPE is valuated reasonably with a Price/Forward Earnings ratio of 9.20.
- 82.86% of the companies in the same industry are more expensive than HPE, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
- 85.71% of the companies in the same industry are more expensive than HPE, based on the Enterprise Value to EBITDA ratio.
- HPE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.26 | ||
| EV/EBITDA | 10.5 |
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.
- HPE's earnings are expected to grow with 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)1.54
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.59%, HPE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.64, HPE pays a better dividend. On top of this HPE pays more dividend than 91.43% of the companies listed in the same industry.
- HPE's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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 2Y19.75%
EPS Next 3Y17.21%
NYSE:HPE (1/14/2026, 3:21:09 PM)
21.985
-0.3 (-1.37%)
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)03-04 2026-03-04/amc
Inst Owners90.03%
Inst Owner Change-0.08%
Ins Owners0.39%
Ins Owner Change-1.53%
Market Cap29.01B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target26.45 (20.31%)
Short Float %5.18%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)-0.45%
PT rev (3m)1.96%
EPS NQ rev (1m)5.37%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-3.44%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.2 | ||
| P/S | 0.85 | ||
| P/FCF | 46.26 | ||
| P/OCF | 9.94 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)1.93
EY8.78%
EPS(NY)2.39
Fwd EY10.87%
FCF(TTM)0.48
FCFY2.16%
OCF(TTM)2.21
OCFY10.06%
SpS25.99
BVpS18.71
TBVpS-4.13
PEG (NY)0.48
PEG (5Y)1.54
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 | 0.82 |
F-Score4
WACC7.01%
ROIC/WACC0.4
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 Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.81%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year18.14%
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 Year113.12%
EBIT Next 3Y37.36%
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%.