Hewlett Packard Enterprise (HPE)
Information Technology · $61.6B market cap · SEC CIK 0001645590
ahead of 20% of the S&P 500 · #59 of 73 in Information Technology
Next reports on Nov 23, 2026, after the close, with analysts expecting $1.29 in earnings per share.
52-week range $19.84 to $73.56. 35% below its 52-week high and 142% above its low.
The case for HPE
- Revenue up 26.6% on the year.
- Earnings per share up 128.2%.
- Pays a 3.0% dividend while you wait.
- Reasonably priced for its growth: 22.1× earnings, where 12% a year of growth plus a 3.0% dividend would justify about 31×.
- Up 102.7% over the past year.
- Price/sales of 1.5× is lower than 90% of Information Technology companies.
The case against
- Long-term debt of $21.7B would take 7 years of operating cash flow to repay.
- Free cash flow is only 1.0% of its market value, a thin cash return for the price.
- Net margin of 7% is thinner than 86% of Information Technology companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 38 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 61 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 33 |
| Momentumhow the price has behaved lately | 56 |
| Stabilityhow violently it moves, what it owes and what it pays you | 26 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +26.6% |
|---|---|
| Over 5 years | +4.9% a year |
| FY2025 revenue | $34.3B (+14%) |
Free cash flow
Is it generating real cash? A little
| FY2025 free cash flow | $627M |
|---|---|
| Of revenue | 2% |
| Of profit | 1100% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 37% |
|---|---|
| Operating margin | 7% |
| Net margin, FY24 → FY25 → now | 8.6% → 0.2% → 6.7% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $5.8B |
|---|---|
| Long-term debt | $21.7B |
| Net debt | $16.0B |
| Years to repay | 7.5 yrs |
Valuation
Is the stock price reasonable? Mixed: cheap on earnings, dear on cash
| P/E | 22.1× |
|---|---|
| Fair P/E for its growth | 31× |
| P/FCF | 98.2× |
| Forward P/E | 11.7× |
| EV / EBITDA | 18.0× |
At 22.1× earnings it trades below the 31× that 12% a year of growth plus a 3.0% dividend would justify. At 98.2× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Hewlett Packard Enterprise's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $34.3B | $30.1B | $29.1B | $28.5B | $27.8B |
| Change on the year | +14% | +3% | +2% | +3% | — |
| Free cash flow | |||||
| Free cash flow | $627M | $2.0B | $1.6B | $1.5B | $3.4B |
| Of revenue | 2% | 7% | 5% | 5% | 12% |
| Profit margins | |||||
| Operating margin | −1.3% | 7.3% | 7.2% | 2.7% | 4.1% |
| Net margin | 0.2% | 8.6% | 7.0% | 3.0% | 12.3% |
| Debt vs. cash | |||||
| Cash | $5.8B | $14.8B | $4.3B | $4.2B | $4.0B |
| Long-term debt | $21.7B | $17.7B | $11.7B | $11.9B | $12.5B |
| Net cash (debt) | −$16.0B | −$2.8B | −$7.4B | −$7.8B | −$8.5B |
What Hewlett Packard Enterprise says it does
Hewlett Packard Enterprise is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. We enable our customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. Our customers range from small-and-medium-sized businesses to large global enterprises and governmental entities. Our legacy dates back to a partnership founded in 1939 by William R. Hewlett and David Packard, and we strive every day to uphold and enhance that legacy through our dedication to providing innovative technological solutions to our customers. We use the terms “Hewlett Packard Enterprise,” “HPE,” “the Company,” “we,” “us,” and “our” to refer to Hewlett Packard Enterprise Company. Our Strategy Over the last several years, HPE has observed…
Risk factors HPE lists in its 10-K
- We operate in an intensely competitive industry, and competitive pressures could harm our business and financial performance
- Uncertainty and fluctuations in geopolitical and macroeconomic conditions may adversely impact our business, financial condition, and operating results
- If we experience or fail to properly manage disruption in the distribution of our products and services properly, our business and financial performance could suffer
- Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses
- Long sales and implementation cycles for our offerings and dynamics related to large orders may cause our revenues and operating results to vary significantly from quarter-to-quarter
- Our uneven sales cycle and supply chain disruptions make planning and inventory management difficult and future financial results less predictable
- Our ability to achieve our strategy could be harmed if we are unable to attract, retain, train, motivate, develop, and transition key personnel
- Risks arising from climate change and the transition to a lower-carbon economy may impact our business
- Issues in the development and use of artificial intelligence may result in reputational harm, liability, or impact to our results of operations
- Our financial performance may suffer if we cannot continue to develop, license, or enforce the intellectual property rights on which our businesses depend
- We may not achieve some or all of the expected benefits of our cost reduction actions, some or all of which may be disruptive to our business
- Our products and services depend in part on intellectual property and technology licensed from third parties
- We rely on the performance of our business systems and processes, as well as those of third-parties with whom we do business
- If we cannot continue to produce quality products and services, our reputation, business, and financial performance may suffer
- Our revenue, profitability, and margins have historically varied, and we expect them to continue to vary over time
- We are exposed to fluctuations in foreign currency exchange rates
- Our debt obligations may adversely affect our business and our ability to meet our obligations and pay dividends
- We make estimates and assumptions in connection with the preparation of our Consolidated Financial Statements and any changes to those estimates and assumptions could adversely affect our results of operations
- Declaration, payment and amounts of dividends, if any, to holders of our shares will be uncertain
- Unfavorable results of legal proceedings, investigations, and other disputes could harm our business and result in substantial costs
- Third-party claims of intellectual property infringement, including patent infringement, are commonplace in our industry and successful third-party claims may limit or disrupt our ability to sell our products and services
- Our business is subject to various federal, state, local, and foreign laws and regulations that could result in costs or other sanctions that adversely affect our business and results of operations
- Contracts with federal, state, provincial, and local governments are subject to a number of challenges and risks that may adversely impact our business
- Unanticipated changes in our tax provisions, the adoption of new tax legislation, or exposure to additional tax liabilities could affect our financial performance
- Our stock price has fluctuated and may continue to fluctuate, which may make future prices of our stock difficult to predict