HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
NYSE:HPE • US42824C1099
21.64 USD
-0.49 (-2.21%)
At close: Mar 3, 2026
21.64 USD
0 (0%)
After Hours: 3/3/2026, 7:19:07 PM
Taking everything into account, HPE scores 4 out of 10 in our fundamental rating. HPE was compared to 36 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.
1. Profitability
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.
- HPE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HPE has a better Return On Assets (-0.08%) than 63.89% of its industry peers.
- HPE's Return On Equity of -0.24% is fine compared to the rest of the industry. HPE outperforms 72.22% of its industry peers.
- HPE has a better Return On Invested Capital (2.80%) than 61.11% of its industry peers.
- HPE had an Average Return On Invested Capital over the past 3 years of 4.48%. This is significantly below the industry average of 16.73%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Operating Margin, with a value of 4.79%, HPE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of HPE has declined.
- HPE has a Gross Margin (30.26%) 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HPE is destroying value.
- Compared to 1 year ago, HPE has more shares outstanding
- HPE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HPE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.82, we must say that HPE is in the distress zone and has some risk of bankruptcy.
- HPE has a Altman-Z score of 0.82. This is comparable to the rest of the industry: HPE outperforms 44.44% of its industry peers.
- 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.
- HPE has a Debt to FCF ratio (35.67) which is in line with its industry peers.
- HPE has a Debt/Equity ratio of 0.72. This is a neutral value indicating HPE is somewhat dependend on debt financing.
- HPE has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.41
WACC6.91%
2.3 Liquidity
- HPE has a Current Ratio of 1.01. 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 (1.01) than 69.44% of its industry peers.
- A Quick Ratio of 0.76 indicates that HPE may have some problems paying its short term obligations.
- HPE has a Quick ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The earnings per share for HPE have decreased by -2.53% in the last year.
- 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 13.84% in the past year. This is quite good.
- Measured over the past years, HPE shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
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
- The Earnings Per Share is expected to grow by 15.81% on average over the next years. This is quite good.
- HPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y23.8%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HPE is valuated reasonably with a Price/Earnings ratio of 11.21.
- Compared to the rest of the industry, the Price/Earnings ratio of HPE indicates a rather cheap valuation: HPE is cheaper than 91.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, HPE is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.06, the valuation of HPE can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, HPE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- HPE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 9.06 |
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 83.33% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.06 | ||
| EV/EBITDA | 10.53 |
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.
- HPE's earnings are expected to grow with 17.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)1.51
EPS Next 2Y19.73%
EPS Next 3Y17.1%
5. Dividend
5.1 Amount
- HPE has a Yearly Dividend Yield of 2.74%.
- HPE's Dividend Yield is rather good when compared to the industry average which is at 0.65. HPE pays more dividend than 91.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HPE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
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.
- HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1349.15%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
21.64
-0.49 (-2.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)12-04 2025-12-04/amc
Earnings (Next)03-09 2026-03-09/amc
Inst Owners90.03%
Inst Owner Change-0.32%
Ins Owners0.39%
Ins Owner Change5.75%
Market Cap28.88B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts75.38
Price Target26.47 (22.32%)
Short Float %6.75%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)0.1%
PT rev (3m)-1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.28%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.84 | ||
| P/FCF | 46.06 | ||
| P/OCF | 9.89 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)1.93
EY8.92%
EPS(NY)2.39
Fwd EY11.04%
FCF(TTM)0.47
FCFY2.17%
OCF(TTM)2.19
OCFY10.11%
SpS25.7
BVpS18.5
TBVpS-4.08
PEG (NY)0.47
PEG (5Y)1.51
Graham Number28.34
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.82 |
F-Score4
WACC6.91%
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)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
EPS Next Y23.8%
EPS Next 2Y19.73%
EPS Next 3Y17.1%
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 Year108.39%
EBIT Next 3Y37.2%
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%.