Hewlett Packard Enterprise (HPE)
Information Technology · $81.7B market cap · SEC CIK 0001645590
fundamentals score out of 100
Next reports on Mar 8, 2027, with analysts expecting $1.02 in earnings per share.
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.
- A PEG of 0.23: a P/E of 29.3× is low for EPS growing 128%.
- Within 5% of its 52-week high: the trend is up.
- Up 147.1% over the past year.
The case against
- Long-term debt of $17.7B would take 6 years of operating cash flow to repay.
- Net margin of 7% is thinner than 86% of Information Technology companies.
- Free cash flow is only 0.8% of its market value, a thin cash return for the price.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 61 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 60 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 32 |
| Momentumhow the price has behaved lately | 92 |
| Stabilityhow violently it moves, what it owes and what it pays you | 30 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 29.3× |
|---|---|
| Price / book | 2.39× |
| Price / sales | 2.0× |
| Revenue growth (YoY) | +26.6% |
| EPS growth (YoY) | +128.2% |
| Gross margin | 37% |
| Operating margin | 7% |
| Net margin | 7% |
| Return on equity | 11% |
| Debt / equity | 0.76× |
| Current ratio | 1.11 |
| Dividend yield | 3.03% |
| Beta | 1.47 |
| 52-week range | $19.84 – $64.25 |
| Position in that range | 93% of the way up |
| 3-month return | +30.2% |
| 1-year return | +147.1% |
Five years of financials, as filed
Pulled from Hewlett Packard Enterprise's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $34.3B | $30.1B | $29.1B | $28.5B | $27.8B |
| Operating income | -$437M | $2.2B | $2.1B | $782M | $1.1B |
| Net income | $57.0M | $2.6B | $2.0B | $868M | $3.4B |
| Operating cash flow | $2.9B | $4.3B | $4.4B | $4.6B | $5.9B |
| Capital expenditure | $2.3B | $2.4B | $2.8B | $3.1B | $2.5B |
| Total assets | $75.8B | $70.3B | $58.6B | $55.6B | $57.9B |
| Shareholder equity | $24.8B | $25.2B | $21.4B | $20.0B | $20.3B |
| Cash | $4.8B | $13.4B | $3.8B | $2.5B | $3.9B |
| Long-term debt | $17.7B | $13.3B | $7.8B | $7.6B | $10.3B |
| Free cash flow | $627M | $2.0B | $1.6B | $1.5B | $3.4B |
| Operating margin | -1.3% | 7.3% | 7.2% | 2.7% | 4.1% |
| Net margin | 0.2% | 8.6% | 7.0% | 3.0% | 12.3% |
| Diluted shares | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B |
Share count is essentially flat over 4 years.
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
- Risks Related to Our Business Strategy and Industry
- Risks Related to Our Technology and Business Operations
- Legal, Regulatory, and Compliance Risks
- 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