HEWLETT PACKARD ENTERPRISE (HPE) Fundamental Analysis & Valuation
NYSE:HPE • US42824C1099
Current stock price
24.915 USD
+0.09 (+0.34%)
Last:
This HPE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- HPE had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years HPE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.31%, HPE is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
- The Return On Equity of HPE (-0.94%) is better than 70.27% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.92%, HPE is in the better half of the industry, outperforming 62.16% 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 15.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.94% | ||
| ROIC | 2.92% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.46%
ROIC(5y)4.77%
1.3 Margins
- HPE's Operating Margin of 4.80% is fine compared to the rest of the industry. HPE outperforms 70.27% of its industry peers.
- In the last couple of years the Operating Margin of HPE has declined.
- HPE's Gross Margin of 31.96% is in line compared to the rest of the industry. HPE outperforms 59.46% of its industry peers.
- HPE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.8% | ||
| PM (TTM) | N/A | ||
| GM | 31.96% |
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. HPE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HPE is destroying value.
- HPE has more shares outstanding than it did 1 year ago.
- 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 0.90. This is a bad value and indicates that HPE is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of HPE (0.90) is worse than 62.16% of its industry peers.
- HPE has a debt to FCF ratio of 10.03. This is a negative value and a sign of low solvency as HPE would need 10.03 years to pay back of all of its debts.
- HPE's Debt to FCF ratio of 10.03 is in line compared to the rest of the industry. HPE outperforms 56.76% of its industry peers.
- HPE has a Debt/Equity ratio of 0.71. This is a neutral value indicating HPE is somewhat dependend on debt financing.
- The Debt to Equity ratio of HPE (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.41
WACC7.19%
2.3 Liquidity
- HPE has a Current Ratio of 1.03. 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 (1.03) is worse than 70.27% of its industry peers.
- HPE has a Quick Ratio of 1.03. 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 worse Quick ratio (0.75) than 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.75 |
3. HPE Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 5.03% over the past year.
- 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 14.47% in the past year. This is quite good.
- The Revenue has been growing slightly by 4.91% on average over the past years.
EPS 1Y (TTM)5.03%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%32.65%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%18.42%
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 Y23.21%
EPS Next 2Y19.37%
EPS Next 3Y16.92%
EPS Next 5Y15.81%
Revenue Next Year18.36%
Revenue Next 2Y11.84%
Revenue Next 3Y9.58%
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. HPE Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.92 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 91.89% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, HPE is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.06, the valuation of HPE can be described as very reasonable.
- HPE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HPE is cheaper than 78.38% of the companies in the same industry.
- HPE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, HPE is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 10.52 |
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 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)1.61
EPS Next 2Y19.37%
EPS Next 3Y16.92%
5. HPE Dividend Analysis
5.1 Amount
- HPE has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.62, HPE pays a better dividend. On top of this HPE pays more dividend than 91.89% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, HPE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.91%
Div Incr Years3
Div Non Decr Years10
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-350%
EPS Next 2Y19.37%
EPS Next 3Y16.92%
HPE Fundamentals: All Metrics, Ratios and Statistics
NYSE:HPE (4/10/2026, 1:26:00 PM)
24.915
+0.09 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)03-09 2026-03-09/amc
Earnings (Next)06-01 2026-06-01/amc
Inst Owners94.1%
Inst Owner Change0%
Ins Owners0.4%
Ins Owner Change4.73%
Market Cap33.06B
Revenue(TTM)35.74B
Net Income(TTM)-234.00M
Analysts74.62
Price Target26.59 (6.72%)
Short Float %5.72%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend0.61
Dividend Growth(5Y)4.91%
DP-350%
Div Incr Years3
Div Non Decr Years10
Ex-Date03-24 2026-03-24 (0.1425)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.37%
Min EPS beat(2)5.42%
Max EPS beat(2)9.31%
EPS beat(4)4
Avg EPS beat(4)7.97%
Min EPS beat(4)1.17%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.7%
EPS beat(12)11
Avg EPS beat(12)5.28%
EPS beat(16)13
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)-1.33%
Revenue beat(4)2
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)0%
PT rev (1m)0.45%
PT rev (3m)0.54%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)1.9%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.92 | ||
| P/FCF | 15.35 | ||
| P/OCF | 7.37 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.52 |
EPS(TTM)2.09
EY8.39%
EPS(NY)2.75
Fwd EY11.04%
FCF(TTM)1.62
FCFY6.52%
OCF(TTM)3.38
OCFY13.57%
SpS26.94
BVpS18.67
TBVpS-3.89
PEG (NY)0.51
PEG (5Y)1.61
Graham Number29.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.94% | ||
| ROCE | 3.34% | ||
| ROIC | 2.92% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 9.01% | ||
| OM | 4.8% | ||
| PM (TTM) | N/A | ||
| GM | 31.96% | ||
| FCFM | 6.03% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.46%
ROIC(5y)4.77%
ROICexc(3y)5.59%
ROICexc(5y)5.72%
ROICexgc(3y)14.1%
ROICexgc(5y)14.12%
ROCE(3y)5.21%
ROCE(5y)5.58%
ROICexgc growth 3Y-17.3%
ROICexgc growth 5Y-3.73%
ROICexc growth 3Y-21.34%
ROICexc growth 5Y-6.46%
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 10.03 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 77.51% | ||
| Cap/Sales | 6.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 0.9 |
F-Score5
WACC7.19%
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)5.03%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%32.65%
EPS Next Y23.21%
EPS Next 2Y19.37%
EPS Next 3Y16.92%
EPS Next 5Y15.81%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%18.42%
Revenue Next Year18.36%
Revenue Next 2Y11.84%
Revenue Next 3Y9.58%
Revenue Next 5Y7.54%
EBIT growth 1Y-29.05%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year108.33%
EBIT Next 3Y37.21%
EBIT Next 5Y19.53%
FCF growth 1Y-18.13%
FCF growth 3Y-24.74%
FCF growth 5YN/A
OCF growth 1Y-15.67%
OCF growth 3Y-14.02%
OCF growth 5Y5.44%
HEWLETT PACKARD ENTERPRISE / HPE Fundamental Analysis 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.
How profitable is HEWLETT PACKARD ENTERPRISE (HPE) stock?
HEWLETT PACKARD ENTERPRISE (HPE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for HPE stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (HPE) is 11.92 and the Price/Book (PB) ratio is 1.33.
Can you provide the financial health for HPE stock?
The financial health rating of HEWLETT PACKARD ENTERPRISE (HPE) is 1 / 10.