HEWLETT PACKARD ENTERPRISE (HPE) Fundamental Analysis & Valuation

NYSE:HPE • US42824C1099

Current stock price

24.58 USD
-0.03 (-0.12%)
At close:
24.48 USD
-0.1 (-0.41%)
Pre-Market:

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.
  • 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

  • HPE has a Return On Assets of -0.31%. This is in the better half of the industry: HPE outperforms 62.16% of its industry peers.
  • HPE has a better Return On Equity (-0.94%) than 70.27% of its industry peers.
  • HPE has a better Return On Invested Capital (2.92%) than 62.16% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HPE is significantly below the industry average of 15.19%.
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 (31.96%) which is comparable to the rest of the industry.
  • 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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1

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.
  • 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 0.90. This is a bad value and indicates that HPE is not financially healthy and even has some risk of bankruptcy.
  • HPE has a worse Altman-Z score (0.90) 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.
  • The Debt to FCF ratio of HPE (10.03) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.71 indicates that HPE is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.71, HPE is in line with its industry, outperforming 43.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 10.03
Altman-Z 0.9
ROIC/WACC0.4
WACC7.22%
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

  • A Current Ratio of 1.03 indicates that HPE should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.03, HPE is doing worse than 70.27% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 0.75, HPE is doing worse than 64.86% of the companies in the same industry.
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

  • The Earnings Per Share has been growing slightly by 5.03% over the past year.
  • The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
  • 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

  • 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.
  • The Revenue is expected to grow by 7.54% on average over the next years.
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

  • 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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7

4. HPE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.76, the valuation of HPE can be described as very reasonable.
  • HPE's Price/Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 91.89% of the companies in the same industry.
  • HPE is valuated cheaply when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 8.94, which indicates a very decent valuation of HPE.
  • 75.68% of the companies in the same industry are more expensive than HPE, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.13. HPE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.76
Fwd PE 8.94
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

  • Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaper than 81.08% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, HPE is valued a bit cheaper than 72.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.14
EV/EBITDA 10.45
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.
  • 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)1.59
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 2.38%.
  • 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 RankSector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.91%
Div Incr Years3
Div Non Decr Years10
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 (4/6/2026, 8:04:00 PM)

Premarket: 24.48 -0.1 (-0.41%)

24.58

-0.03 (-0.12%)

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 Change0%
Ins Owners0.4%
Ins Owner Change4.73%
Market Cap32.61B
Revenue(TTM)35.74B
Net Income(TTM)-234.00M
Analysts74.62
Price Target26.59 (8.18%)
Short Float %5.72%
Short Ratio3.98
Dividend
Industry RankSector 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
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 RankSector Rank
PE 11.76
Fwd PE 8.94
P/S 0.91
P/FCF 15.14
P/OCF 7.27
P/B 1.32
P/tB N/A
EV/EBITDA 10.45
EPS(TTM)2.09
EY8.5%
EPS(NY)2.75
Fwd EY11.19%
FCF(TTM)1.62
FCFY6.6%
OCF(TTM)3.38
OCFY13.76%
SpS26.94
BVpS18.67
TBVpS-3.89
PEG (NY)0.51
PEG (5Y)1.59
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 0.9
F-Score5
WACC7.22%
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)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 11.76 and the Price/Book (PB) ratio is 1.32.


Can you provide the financial health for HPE stock?

The financial health rating of HEWLETT PACKARD ENTERPRISE (HPE) is 1 / 10.