HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HPE - US42824C1099 - Common Stock
22.915 USD
+0.02 (+0.07%)
Overall HPE gets a fundamental rating of 4 out of 10. We evaluated HPE against 35 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. HPE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HPE was profitable.
HPE had a positive operating cash flow in the past year.
Of the past 5 years HPE 4 years were profitable.
HPE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HPE has a better Return On Assets (1.47%) than 62.86% of its industry peers.
The Return On Equity of HPE (4.66%) is better than 74.29% of its industry peers.
HPE's Return On Invested Capital of 3.50% is fine compared to the rest of the industry. HPE outperforms 65.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HPE is significantly below the industry average of 15.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROIC | 3.5% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)5.52%
ROIC(5y)5.09%
1.3 Margins
Looking at the Profit Margin, with a value of 3.43%, HPE is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
In the last couple of years the Profit Margin of HPE has grown nicely.
With a decent Operating Margin value of 6.15%, HPE is doing good in the industry, outperforming 65.71% of the companies in the same industry.
HPE's Operating Margin has been stable in the last couple of years.
HPE has a Gross Margin of 29.45%. This is comparable to the rest of the industry: HPE outperforms 54.29% of its industry peers.
HPE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% |
OM growth 3Y2.85%
OM growth 5Y-0.53%
PM growth 3Y-11.75%
PM growth 5Y18.68%
GM growth 3Y-0.96%
GM growth 5Y0.13%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HPE has an Altman-Z score of 0.79. This is a bad value and indicates that HPE is not financially healthy and even has some risk of bankruptcy.
HPE has a Altman-Z score of 0.79. This is in the lower half of the industry: HPE underperforms 60.00% of its industry peers.
The Debt to FCF ratio of HPE is 105.12, which is on the high side as it means it would take HPE, 105.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 105.12, HPE is in line with its industry, outperforming 45.71% of the companies in the same industry.
HPE has a Debt/Equity ratio of 0.76. This is a neutral value indicating HPE is somewhat dependend on debt financing.
HPE's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. HPE outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.48
WACC7.29%
2.3 Liquidity
HPE has a Current Ratio of 0.95. This is a bad value and indicates that HPE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.95, HPE is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that HPE may have some problems paying its short term obligations.
The Quick ratio of HPE (0.69) is worse than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
HPE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.53%.
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.
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 15.07% yearly.
Based on estimates for the next years, HPE will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.87, which indicates a very decent valuation of HPE.
Based on the Price/Earnings ratio, HPE is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
HPE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.41.
HPE is valuated reasonably with a Price/Forward Earnings ratio of 9.57.
Based on the Price/Forward Earnings ratio, HPE is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HPE to the average of the S&P500 Index (35.40), we can say HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPE is valued cheaper than 85.71% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HPE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 134.38 | ||
| EV/EBITDA | 10.48 |
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.
The decent profitability rating of HPE may justify a higher PE ratio.
A more expensive valuation may be justified as HPE's earnings are expected to grow with 16.44% in the coming years.
PEG (NY)0.49
PEG (5Y)1.6
EPS Next 2Y20.03%
EPS Next 3Y16.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, HPE has a reasonable but not impressive dividend return.
HPE's Dividend Yield is rather good when compared to the industry average which is at 1.93. HPE pays more dividend than 91.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, HPE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of HPE has a limited annual growth rate of 3.20%.
HPE has been paying a dividend for at least 10 years, so it has 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)3.2%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
67.34% of the earnings are spent on dividend by HPE. This is not a sustainable payout ratio.
HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.34%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
NYSE:HPE (12/5/2025, 10:43:08 AM)
22.915
+0.02 (+0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change0.51%
Ins Owners0.36%
Ins Owner Change-7.39%
Market Cap30.24B
Revenue(TTM)N/A
Net Income(TTM)1.14B
Analysts74.62
Price Target26.87 (17.26%)
Short Float %3.71%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend0.52
Dividend Growth(5Y)3.2%
DP67.34%
Div Incr Years2
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.57%
Min EPS beat(2)1.17%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)4.54%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)4.78%
EPS beat(12)11
Avg EPS beat(12)5.45%
EPS beat(16)13
Avg EPS beat(16)5.08%
Revenue beat(2)2
Avg Revenue beat(2)3.74%
Min Revenue beat(2)1.42%
Max Revenue beat(2)6.06%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)3.58%
PT rev (3m)13.12%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)3.35%
EPS NY rev (1m)0.07%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)5.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.57 | ||
| P/S | 0.91 | ||
| P/FCF | 134.38 | ||
| P/OCF | 12.17 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.48 |
EPS(TTM)1.93
EY8.42%
EPS(NY)2.39
Fwd EY10.45%
FCF(TTM)0.17
FCFY0.74%
OCF(TTM)1.88
OCFY8.22%
SpS25.07
BVpS18.49
TBVpS-4.55
PEG (NY)0.49
PEG (5Y)1.6
Graham Number28.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROCE | 4.07% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 10.81% | ||
| OM | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% | ||
| FCFM | 0.68% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)5.52%
ROIC(5y)5.09%
ROICexc(3y)6.82%
ROICexc(5y)6.08%
ROICexgc(3y)16.7%
ROICexgc(5y)14.78%
ROCE(3y)6.33%
ROCE(5y)5.84%
ROICexgc growth 3Y10.99%
ROICexgc growth 5Y-3.59%
ROICexc growth 3Y8.67%
ROICexc growth 5Y-0.74%
OM growth 3Y2.85%
OM growth 5Y-0.53%
PM growth 3Y-11.75%
PM growth 5Y18.68%
GM growth 3Y-0.96%
GM growth 5Y0.13%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 90.36% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.77% | ||
| Profit Quality | 19.81% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.79 |
F-Score4
WACC7.29%
ROIC/WACC0.48
Cap/Depr(3y)108.77%
Cap/Depr(5y)102.69%
Cap/Sales(3y)9.51%
Cap/Sales(5y)9.27%
Profit Quality(3y)108.59%
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 Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.44%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
EBIT growth 1Y-10.43%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year79.02%
EBIT Next 3Y33.97%
EBIT Next 5Y17.11%
FCF growth 1Y-84.67%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-46.25%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%
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 for HPE stock?
ChartMill assigns a valuation rating of 6 / 10 to HEWLETT PACKARD ENTERPRISE (HPE). This can be considered as Fairly Valued.
What is the profitability of HPE stock?
HEWLETT PACKARD ENTERPRISE (HPE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of HEWLETT PACKARD ENTERPRISE (HPE) stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (HPE) is 11.87 and the Price/Book (PB) ratio is 1.24.
What is the financial health of HEWLETT PACKARD ENTERPRISE (HPE) stock?
The financial health rating of HEWLETT PACKARD ENTERPRISE (HPE) is 1 / 10.