HEWLETT PACKARD ENTERPRISE (HPE) Fundamental Analysis & Valuation

NYSE:HPE • US42824C1099

Current stock price

28.16 USD
+0.23 (+0.82%)
At close:
28.1 USD
-0.06 (-0.21%)
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.
  • Of the past 5 years HPE 4 years were profitable.
  • 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 60.53% of its industry peers.
  • With a decent Return On Equity value of -0.94%, HPE is doing good in the industry, outperforming 68.42% of the companies in the same industry.
  • HPE has a Return On Invested Capital of 2.92%. This is in the better half of the industry: HPE outperforms 60.53% 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 15.09%.
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's Operating Margin of 4.80% is fine compared to the rest of the industry. HPE outperforms 71.05% 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 55.26% 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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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.
  • HPE has more shares outstanding than it did 5 years ago.
  • HPE has a worse debt/assets ratio than last year.
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 0.95, we must say that HPE is in the distress zone and has some risk of bankruptcy.
  • HPE has a Altman-Z score of 0.95. This is in the lower half of the industry: HPE underperforms 65.79% of its industry peers.
  • The Debt to FCF ratio of HPE is 10.03, which is on the high side as it means it would take HPE, 10.03 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 10.03, HPE is in line with its industry, outperforming 55.26% of the companies in the same 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 of 0.71. This is comparable to the rest of the industry: HPE outperforms 42.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 10.03
Altman-Z 0.95
ROIC/WACC0.4
WACC7.34%
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.
  • HPE has a worse Current ratio (1.03) than 68.42% of its industry peers.
  • A Quick Ratio of 0.75 indicates that HPE may have some problems paying its short term obligations.
  • The Quick ratio of HPE (0.75) is worse than 65.79% of 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. HPE Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.03% over the past 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.
  • Looking at the last year, HPE shows a quite strong growth in Revenue. The Revenue has grown by 14.47% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 15.57% 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 7.28% on average per year.
EPS Next Y26.82%
EPS Next 2Y19.39%
EPS Next 3Y16.82%
EPS Next 5Y15.57%
Revenue Next Year18.31%
Revenue Next 2Y11.81%
Revenue Next 3Y9.58%
Revenue Next 5Y7.28%

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.
  • 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

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7

4. HPE Valuation Analysis

4.1 Price/Earnings Ratio

  • HPE is valuated correctly with a Price/Earnings ratio of 13.47.
  • Compared to the rest of the industry, the Price/Earnings ratio of HPE indicates a rather cheap valuation: HPE is cheaper than 92.11% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, HPE is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.24, the valuation of HPE can be described as reasonable.
  • 81.58% of the companies in the same industry are more expensive than HPE, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.29, HPE is valued rather cheaply.
Industry RankSector Rank
PE 13.47
Fwd PE 10.24
HPE Price Earnings VS Forward Price EarningsHPE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaper than 84.21% of the companies in the same industry.
  • HPE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HPE is cheaper than 71.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.35
EV/EBITDA 11.45
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.
  • A more expensive valuation may be justified as HPE's earnings are expected to grow with 16.82% in the coming years.
PEG (NY)0.5
PEG (5Y)1.82
EPS Next 2Y19.39%
EPS Next 3Y16.82%

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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 2.04%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.70, HPE pays a better dividend. On top of this HPE pays more dividend than 92.11% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, HPE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.04%

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.
  • HPE has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y19.39%
EPS Next 3Y16.82%
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 (4/24/2026, 8:04:00 PM)

After market: 28.1 -0.06 (-0.21%)

28.16

+0.23 (+0.82%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)03-09
Earnings (Next)06-01
Inst Owners94.18%
Inst Owner Change-0.04%
Ins Owners0.37%
Ins Owner Change1.43%
Market Cap37.36B
Revenue(TTM)35.74B
Net Income(TTM)-234.00M
Analysts74.62
Price Target26.53 (-5.79%)
Short Float %6.03%
Short Ratio4.24
Dividend
Industry RankSector Rank
Dividend Yield 2.04%
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)0.23%
PT rev (3m)0.33%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)2.93%
EPS NY rev (3m)2.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 13.47
Fwd PE 10.24
P/S 1.05
P/FCF 17.35
P/OCF 8.33
P/B 1.51
P/tB N/A
EV/EBITDA 11.45
EPS(TTM)2.09
EY7.42%
EPS(NY)2.75
Fwd EY9.77%
FCF(TTM)1.62
FCFY5.76%
OCF(TTM)3.38
OCFY12.01%
SpS26.94
BVpS18.67
TBVpS-3.89
PEG (NY)0.5
PEG (5Y)1.82
Graham Number29.6314 (5.23%)
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 0.95
F-Score5
WACC7.34%
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 Y26.82%
EPS Next 2Y19.39%
EPS Next 3Y16.82%
EPS Next 5Y15.57%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%18.42%
Revenue Next Year18.31%
Revenue Next 2Y11.81%
Revenue Next 3Y9.58%
Revenue Next 5Y7.28%
EBIT growth 1Y-29.05%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year115.4%
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 13.47 and the Price/Book (PB) ratio is 1.51.


Can you provide the financial health for HPE stock?

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