HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:HPE • US42824C1099

22.71 USD
-0.53 (-2.28%)
At close: Feb 5, 2026
22.58 USD
-0.13 (-0.57%)
After Hours: 2/5/2026, 8:04:00 PM
Fundamental Rating

4

HPE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 34 industry peers in the Technology Hardware, Storage & Peripherals industry. HPE has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on HPE.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year HPE was profitable.
  • In the past year HPE had a positive cash flow from operations.
  • Of the past 5 years HPE 4 years were profitable.
  • HPE had a positive operating cash flow in each of the past 5 years.
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 -0.08%. This is in the better half of the industry: HPE outperforms 64.71% of its industry peers.
  • HPE has a Return On Equity of -0.24%. This is in the better half of the industry: HPE outperforms 73.53% of its industry peers.
  • The Return On Invested Capital of HPE (2.80%) is better than 64.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for HPE is significantly below the industry average of 16.39%.
Industry RankSector 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%
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

  • Looking at the Operating Margin, with a value of 4.79%, HPE is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
  • HPE's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 30.26%, HPE perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
  • HPE's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

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.
  • HPE has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, HPE has a worse debt to assets ratio.
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

  • Based on the Altman-Z score of 0.84, we must say that HPE is in the distress zone and has some risk of bankruptcy.
  • HPE has a Altman-Z score (0.84) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of HPE is 35.67, which is on the high side as it means it would take HPE, 35.67 years of fcf income to pay off 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.
  • HPE has a Debt to Equity ratio (0.72) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 35.67
Altman-Z 0.84
ROIC/WACC0.4
WACC7.09%
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 1.01 indicates that HPE should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.01, HPE is doing worse than 67.65% of the companies in the same industry.
  • A Quick Ratio of 0.76 indicates that HPE may have some problems paying its short term obligations.
  • HPE's Quick ratio of 0.76 is in line compared to the rest of the industry. HPE outperforms 47.06% of its industry peers.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 0.76
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The earnings per share for HPE have decreased by -2.53% in the last year.
  • Measured over the past 5 years, HPE shows a small growth in Earnings Per Share. The EPS has been growing by 7.41% on average per year.
  • 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

  • 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 Y23.86%
EPS Next 2Y19.73%
EPS Next 3Y17.12%
EPS Next 5Y15.81%
Revenue Next Year18.19%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
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.
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

More info and screens

Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • HPE is valuated reasonably with a Price/Earnings ratio of 11.77.
  • Based on the Price/Earnings ratio, HPE is valued cheaper than 91.18% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of HPE to the average of the S&P500 Index (27.67), we can say HPE is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.50, the valuation of HPE can be described as very reasonable.
  • HPE's Price/Forward Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 82.35% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.20, HPE is valued rather cheaply.
Industry RankSector Rank
PE 11.77
Fwd PE 9.5
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

  • HPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HPE is cheaper than 79.41% of the companies in the same industry.
  • HPE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 47.79
EV/EBITDA 10.79
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 17.12% in the coming years.
PEG (NY)0.49
PEG (5Y)1.59
EPS Next 2Y19.73%
EPS Next 3Y17.12%

More info and screens

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.59%, HPE has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.67, HPE pays a better dividend. On top of this HPE pays more dividend than 91.18% of the companies listed 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 2.59%

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 in the past 5 years, so it has a somewhat stable track record.
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 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-1349.15%
EPS Next 2Y19.73%
EPS Next 3Y17.12%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

HEWLETT PACKARD ENTERPRISE

NYSE:HPE (2/5/2026, 8:04:00 PM)

After market: 22.58 -0.13 (-0.57%)

22.71

-0.53 (-2.28%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)12-04
Earnings (Next)03-04
Inst Owners90.03%
Inst Owner Change-2.04%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap29.96B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target26.44 (16.42%)
Short Float %6.41%
Short Ratio3.92
Dividend
Industry RankSector Rank
Dividend Yield 2.59%
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)-0.02%
PT rev (3m)-1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.36%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-6.03%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 11.77
Fwd PE 9.5
P/S 0.87
P/FCF 47.79
P/OCF 10.27
P/B 1.21
P/tB N/A
EV/EBITDA 10.79
EPS(TTM)1.93
EY8.5%
EPS(NY)2.39
Fwd EY10.53%
FCF(TTM)0.48
FCFY2.09%
OCF(TTM)2.21
OCFY9.74%
SpS25.99
BVpS18.71
TBVpS-4.13
PEG (NY)0.49
PEG (5Y)1.59
Graham Number28.5
Profitability
Industry RankSector 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 RankSector 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 0.84
F-Score4
WACC7.09%
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 Y23.86%
EPS Next 2Y19.73%
EPS Next 3Y17.12%
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%.