HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HPE - US42824C1099 - Common Stock
21.44 USD
-0.51 (-2.32%)
21.45 USD
+0.01 (+0.05%)
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. 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.
1. Profitability
1.1 Basic Checks
- In the past year HPE was profitable.
- 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.
1.2 Ratios
- With a decent Return On Assets value of -0.08%, HPE is doing good in the industry, outperforming 65.71% of the companies in the same industry.
- 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 better Return On Invested Capital (2.80%) than 65.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- HPE has a better Operating Margin (4.79%) than 65.71% of its industry peers.
- In the last couple of years the Operating Margin of HPE has declined.
- 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
- 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
- The debt/assets ratio for HPE is higher compared to a year ago.
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.
- HPE's Altman-Z score of 0.81 is in line compared to the rest of the industry. HPE outperforms 42.86% of its industry peers.
- 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.
- The Debt to FCF ratio of HPE (35.67) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.72 indicates that HPE is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.72, HPE is in line with its industry, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.4
WACC6.99%
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's Current ratio of 1.01 is on the low side compared to the rest of the industry. HPE is outperformed by 62.86% of its industry peers.
- A Quick Ratio of 0.76 indicates that HPE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.76, HPE is in line with its industry, outperforming 48.57% of the companies in the same 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%.
- The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
- HPE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.84%.
- 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 Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.81%
Revenue Next Year18.14%
Revenue Next 2Y11.81%
Revenue Next 3Y9.23%
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
- A Price/Earnings ratio of 11.11 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 97.14% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, HPE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.98, the valuation of HPE can be described as reasonable.
- HPE's Price/Forward Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- HPE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.12 | ||
| EV/EBITDA | 10.24 |
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 17.21% in the coming years.
PEG (NY)0.47
PEG (5Y)1.5
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
- HPE has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.87, HPE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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.
- 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 2Y19.75%
EPS Next 3Y17.21%
21.44
-0.51 (-2.32%)
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 Cap28.29B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target26.44 (23.32%)
Short Float %5.18%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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)-0.47%
PT rev (3m)1.94%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 8.98 | ||
| P/S | 0.82 | ||
| P/FCF | 45.12 | ||
| P/OCF | 9.69 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.24 |
EPS(TTM)1.93
EY9%
EPS(NY)2.39
Fwd EY11.14%
FCF(TTM)0.48
FCFY2.22%
OCF(TTM)2.21
OCFY10.32%
SpS25.99
BVpS18.71
TBVpS-4.13
PEG (NY)0.47
PEG (5Y)1.5
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 | 0.81 |
F-Score4
WACC6.99%
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 2Y11.81%
Revenue Next 3Y9.23%
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%.