HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
NYSE:HPE • US42824C1099
21.39 USD
-0.16 (-0.74%)
At close: Feb 19, 2026
21.6 USD
+0.21 (+0.98%)
Pre-Market: 2/20/2026, 4:17:17 AM
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. 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.
- HPE had a positive operating cash flow in the past year.
- 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 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.
- Looking at the Return On Invested Capital, with a value of 2.80%, HPE is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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's Operating Margin of 4.79% is fine compared to the rest of the industry. HPE outperforms 66.67% of its industry peers.
- HPE's Operating Margin has declined in the last couple of years.
- HPE has a Gross Margin (30.26%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for HPE has been increased compared to 1 year ago.
- HPE has more shares outstanding than it did 5 years ago.
- HPE has a worse debt/assets ratio than last year.
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.
- The Altman-Z score of HPE (0.81) 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 52.78% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that HPE is somewhat dependend on debt financing.
- HPE has a Debt to Equity ratio (0.72) which 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/WACC0.4
WACC6.92%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that HPE should not have too much problems paying its short term obligations.
- HPE has a Current ratio of 1.01. This is in the lower half of the industry: HPE underperforms 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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 15.81% on average over the next years. This is quite good.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- A Price/Earnings ratio of 11.08 indicates a reasonable valuation of HPE.
- Based on the Price/Earnings ratio, HPE is valued cheaper than 91.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.09. HPE is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 8.95, the valuation of HPE can be described as very reasonable.
- 83.33% of the companies in the same industry are more expensive than HPE, based on the Price/Forward Earnings ratio.
- HPE is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 8.95 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HPE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.53 | ||
| EV/EBITDA | 10.3 |
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)1.5
EPS Next 2Y19.73%
EPS Next 3Y17.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.57%, HPE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.65, 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 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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.
- As HPE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.91%
Div Incr Years2
Div Non Decr Years9
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.
- 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%
21.39
-0.16 (-0.74%)
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 Change0.11%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap28.55B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts75.38
Price Target26.62 (24.45%)
Short Float %7.13%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 | 11.08 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.83 | ||
| P/FCF | 45.53 | ||
| P/OCF | 9.78 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.3 |
EPS(TTM)1.93
EY9.02%
EPS(NY)2.39
Fwd EY11.17%
FCF(TTM)0.47
FCFY2.2%
OCF(TTM)2.19
OCFY10.23%
SpS25.7
BVpS18.5
TBVpS-4.08
PEG (NY)0.47
PEG (5Y)1.5
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
WACC6.92%
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 Y23.8%
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%.