HEWLETT PACKARD ENTERPRISE (HPE) Fundamental Analysis & Valuation

NYSE:HPE • US42824C1099

Current stock price

21.58 USD
0 (0%)
At close:
21.5003 USD
-0.08 (-0.37%)
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

  • 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.
  • 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

  • With a decent Return On Assets value of -0.31%, HPE is doing good in the industry, outperforming 64.86% of the companies in the same industry.
  • HPE has a better Return On Equity (-0.94%) than 72.97% of its industry peers.
  • The Return On Invested Capital of HPE (2.92%) is better than 62.16% of its industry peers.
  • HPE had an Average Return On Invested Capital over the past 3 years of 4.46%. This is significantly below the industry average of 15.96%.
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

  • The Operating Margin of HPE (4.80%) is better than 67.57% 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.
  • HPE's Gross Margin has been stable in the last couple of years.
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.
  • The number of shares outstanding for HPE has been increased compared to 5 years ago.
  • 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 0.85. 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 (0.85) is comparable to the rest of the industry.
  • 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.
  • A Debt/Equity ratio of 0.71 indicates that 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 0.85
ROIC/WACC0.41
WACC7.04%
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.
  • With a Current ratio value of 1.03, HPE is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.75 indicates that HPE may have some problems paying its short term obligations.
  • HPE has a Quick ratio (0.75) which is in line with its industry peers.
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.
  • Looking at the last year, HPE shows a quite strong growth in Revenue. The Revenue has grown by 14.47% in the last year.
  • 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

  • HPE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.81% yearly.
  • 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 Year18.17%
Revenue Next 2Y11.81%
Revenue Next 3Y9.26%
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.
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

  • HPE is valuated reasonably with a Price/Earnings ratio of 10.33.
  • 94.59% of the companies in the same industry are more expensive than HPE, based on the Price/Earnings ratio.
  • HPE is valuated cheaply when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 7.85, the valuation of HPE can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, HPE is valued cheaper than 83.78% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. HPE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.33
Fwd PE 7.85
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

  • 89.19% of the companies in the same industry are more expensive than HPE, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPE indicates a somewhat cheap valuation: HPE is cheaper than 75.68% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.31
EV/EBITDA 9.61
HPE Per share dataHPE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 16.92% in the coming years.
PEG (NY)0.44
PEG (5Y)1.39
EPS Next 2Y19.37%
EPS Next 3Y16.92%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HPE Dividend Analysis

5.1 Amount

  • HPE has a Yearly Dividend Yield of 2.66%.
  • HPE's Dividend Yield is rather good when compared to the industry average which is at 0.63. HPE pays more dividend than 91.89% of the companies in the same industry.
  • HPE's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.66%

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
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

  • 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-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 (3/13/2026, 8:04:00 PM)

After market: 21.5003 -0.08 (-0.37%)

21.58

0 (0%)

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 Cap28.68B
Revenue(TTM)35.74B
Net Income(TTM)-234.00M
Analysts74.62
Price Target26.47 (22.66%)
Short Float %6.75%
Short Ratio5.2
Dividend
Industry RankSector Rank
Dividend Yield 2.66%
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)0.11%
EPS NQ rev (3m)5.49%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 10.33
Fwd PE 7.85
P/S 0.8
P/FCF 13.31
P/OCF 6.39
P/B 1.16
P/tB N/A
EV/EBITDA 9.61
EPS(TTM)2.09
EY9.68%
EPS(NY)2.75
Fwd EY12.74%
FCF(TTM)1.62
FCFY7.51%
OCF(TTM)3.38
OCFY15.65%
SpS26.9
BVpS18.64
TBVpS-3.88
PEG (NY)0.44
PEG (5Y)1.39
Graham Number29.61
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 0.85
F-Score5
WACC7.04%
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%.