HEWLETT PACKARD ENTERPRISE (HPE) Fundamental Analysis & Valuation

NYSE:HPE • US42824C1099

Current stock price

21.69 USD
-0.43 (-1.94%)
At close:
21.85 USD
+0.16 (+0.74%)
After Hours:

This HPE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. HPE Profitability Analysis

1.1 Basic Checks

  • In the past year HPE was profitable.
  • 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.
HPE Yearly Net Income VS EBIT VS OCF VS FCFHPE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

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 64.86% of the companies in the same industry.
  • HPE has a Return On Equity of -0.94%. This is in the better half of the industry: HPE outperforms 72.97% 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 64.86% 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 15.72%.
Industry RankSector 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%
HPE Yearly ROA, ROE, ROICHPE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • HPE has a Operating Margin of 4.80%. This is in the better half 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 has a Gross Margin of 31.96%. This is comparable to the rest of the industry: HPE outperforms 59.46% 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 RankSector 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%
HPE Yearly Profit, Operating, Gross MarginsHPE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

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2

2. HPE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
HPE Yearly Shares OutstandingHPE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
HPE Yearly Total Debt VS Total AssetsHPE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • HPE has an Altman-Z score of 0.86. 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 0.86 is in line compared to the rest of the industry. HPE outperforms 40.54% 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 has a Debt to FCF ratio (10.03) which is comparable to the rest of the industry.
  • HPE has a Debt/Equity ratio of 0.71. This is a neutral value indicating HPE is somewhat dependend on debt financing.
  • HPE has a Debt to Equity ratio (0.71) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 10.03
Altman-Z 0.86
ROIC/WACC0.41
WACC7.1%
HPE Yearly LT Debt VS Equity VS FCFHPE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

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.
  • HPE has a worse Current ratio (1.03) than 67.57% of its industry peers.
  • A Quick Ratio of 0.75 indicates that HPE may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.75, HPE is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.75
HPE Yearly Current Assets VS Current LiabilitesHPE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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5

3. HPE Growth Analysis

3.1 Past

  • HPE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.03%.
  • 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.
  • HPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
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.
  • 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 Y23.21%
EPS Next 2Y19.37%
EPS Next 3Y16.92%
EPS Next 5Y15.81%
Revenue Next Year18.17%
Revenue Next 2Y11.81%
Revenue Next 3Y9.26%
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.
  • 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.
HPE Yearly Revenue VS EstimatesHPE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
HPE Yearly EPS VS EstimatesHPE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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8

4. HPE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.38 indicates a reasonable valuation of HPE.
  • HPE's Price/Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 94.59% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. HPE is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 7.89, which indicates a rather cheap valuation of HPE.
  • HPE's Price/Forward Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 86.49% 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 23.28.
Industry RankSector Rank
PE 10.38
Fwd PE 7.89
HPE Price Earnings VS Forward Price EarningsHPE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HPE indicates a rather cheap valuation: HPE is cheaper than 86.49% of the companies listed in the same industry.
  • 72.97% of the companies in the same industry are more expensive than HPE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.36
EV/EBITDA 9.76
HPE Per share dataHPE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 16.92% in the coming years.
PEG (NY)0.45
PEG (5Y)1.4
EPS Next 2Y19.37%
EPS Next 3Y16.92%

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6

5. HPE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.61%, HPE has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.63, 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 1.91, HPE pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.61%

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
HPE Yearly Dividends per shareHPE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

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-350%
EPS Next 2Y19.37%
EPS Next 3Y16.92%
HPE Yearly Income VS Free CF VS DividendHPE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

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HPE Fundamentals: All Metrics, Ratios and Statistics

HEWLETT PACKARD ENTERPRISE

NYSE:HPE (3/20/2026, 8:04:00 PM)

After market: 21.85 +0.16 (+0.74%)

21.69

-0.43 (-1.94%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)03-09
Earnings (Next)06-01
Inst Owners94.1%
Inst Owner Change-0.28%
Ins Owners0.4%
Ins Owner Change9.9%
Market Cap28.78B
Revenue(TTM)35.74B
Net Income(TTM)-234.00M
Analysts74.62
Price Target26.47 (22.04%)
Short Float %6.03%
Short Ratio4.43
Dividend
Industry RankSector Rank
Dividend Yield 2.61%
Yearly Dividend0.61
Dividend Growth(5Y)4.91%
DP-350%
Div Incr Years2
Div Non Decr Years9
Ex-Date03-24
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)-0.57%
PT rev (3m)-0.37%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)4.04%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)1.37%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 10.38
Fwd PE 7.89
P/S 0.81
P/FCF 13.36
P/OCF 6.41
P/B 1.16
P/tB N/A
EV/EBITDA 9.76
EPS(TTM)2.09
EY9.64%
EPS(NY)2.75
Fwd EY12.68%
FCF(TTM)1.62
FCFY7.48%
OCF(TTM)3.38
OCFY15.59%
SpS26.94
BVpS18.67
TBVpS-3.89
PEG (NY)0.45
PEG (5Y)1.4
Graham Number29.63
Profitability
Industry RankSector 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 RankSector 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 0.86
F-Score5
WACC7.1%
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 Year18.17%
Revenue Next 2Y11.81%
Revenue Next 3Y9.26%
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 8 / 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 -350%.