(HPE) Hewlett Packard Enterprise - Ratings and Ratios
Servers, Networking, Software, Financing, Services
HPE EPS (Earnings per Share)
HPE Revenue
Description: HPE Hewlett Packard Enterprise
Hewlett Packard Enterprise (HPE) delivers end-to-end IT infrastructure that enables customers to capture, analyze, and act on data. Its portfolio spans general-purpose and workload-optimized servers (including ProLiant rack/tower, Synergy composable systems, Scale-Up, Edgeline, Cray EX/XD, and NonStop), as well as the Aruba edge-networking suite (Wi-Fi APs, switches, gateways, and cloud-managed networking, SD-WAN, security, analytics, and location services). HPE also monetizes consumption-based models through GreenLake, offers financing and leasing programs, and provides consultative services, software for communications and media, and research via Hewlett Packard Labs.
In FY 2023 HPE generated roughly $29 billion in revenue, with GreenLake consumption revenue growing ≈ 30 % YoY and representing about 30 % of total sales-a key indicator of the shift toward “as-a-service” models. Operating margin hovered near 5 %, reflecting the capital-intensive nature of hardware but offset by higher-margin services and software. The company’s free cash flow conversion improved to ~ 80 % of earnings, supporting its aggressive share-repurchase program.
Macro-level drivers for HPE include sustained corporate IT capex, accelerating adoption of hybrid-cloud and AI workloads that demand high-performance compute (e.g., Cray supercomputers) and low-latency edge infrastructure (Aruba). Additionally, ESG pressures are prompting enterprises to modernize data centers for energy efficiency, a trend HPE leverages through its sustainable-design initiatives and GreenLake’s pay-per-use model. The broader technology-hardware sector remains sensitive to semiconductor supply constraints and global macro-uncertainty, which can compress margins if inventory builds.
For a deeper, data-driven assessment of HPE’s valuation and risk profile, you may find the analytical tools on ValueRay useful for further research.
HPE Stock Overview
| Market Cap in USD | 33,039m |
| Sub-Industry | Technology Hardware, Storage & Peripherals |
| IPO / Inception | 2015-10-19 |
HPE Stock Ratings
| Growth Rating | 63.9% |
| Fundamental | 47.2% |
| Dividend Rating | 55.7% |
| Return 12m vs S&P 500 | 2.81% |
| Analyst Rating | 3.88 of 5 |
HPE Dividends
| Dividend Yield 12m | 2.23% |
| Yield on Cost 5y | 6.38% |
| Annual Growth 5y | 2.02% |
| Payout Consistency | 94.5% |
| Payout Ratio | 27.5% |
HPE Growth Ratios
| Growth Correlation 3m | 83.1% |
| Growth Correlation 12m | 23.6% |
| Growth Correlation 5y | 85% |
| CAGR 5y | 22.55% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.47 |
| CAGR/Mean DD 3y (Pain Ratio) | 2.18 |
| Sharpe Ratio 12m | 1.09 |
| Alpha | -8.24 |
| Beta | 1.458 |
| Volatility | 60.19% |
| Current Volume | 79682k |
| Average Volume 20d | 27908.4k |
| Stop Loss | 21.9 (-5.9%) |
| Signal | 1.00 |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (1.25b TTM) > 0 and > 6% of Revenue (6% = 1.98b TTM) |
| FCFTA 0.02 (>2.0%) and ΔFCFTA -2.04pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -4.07% (prev -5.05%; Δ 0.97pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.03 (>3.0%) and CFO 2.48b > Net Income 1.25b (YES >=105%, WARN >=100%) |
| Net Debt (19.08b) to EBITDA (3.85b) ratio: 4.95 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.95 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (1.42b) change vs 12m ago 6.68% (target <= -2.0% for YES) |
| Gross Margin 27.96% (prev 32.71%; Δ -4.75pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 47.78% (prev 47.53%; Δ 0.26pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 6.56 (EBITDA TTM 3.85b / Interest Expense TTM 206.0m) >= 6 (WARN >= 3) |
Altman Z'' -0.22
| (A) -0.02 = (Total Current Assets 26.00b - Total Current Liabilities 27.35b) / Total Assets 77.34b |
| (B) -0.04 = Retained Earnings (Balance) -2.79b / Total Assets 77.34b |
| (C) 0.02 = EBIT TTM 1.35b / Avg Total Assets 69.10b |
| (D) -0.11 = Book Value of Equity -5.80b / Total Liabilities 52.94b |
| Total Rating: -0.22 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 47.21
| 1. Piotroski 2.50pt = -2.50 |
| 2. FCF Yield 3.60% = 1.80 |
| 3. FCF Margin 5.68% = 1.42 |
| 4. Debt/Equity 0.97 = 2.05 |
| 5. Debt/Ebitda 4.95 = -2.50 |
| 6. ROIC - WACC (= -3.38)% = -4.23 |
| 7. RoE 5.08% = 0.42 |
| 8. Rev. Trend 52.85% = 3.96 |
| 9. EPS Trend -64.40% = -3.22 |
What is the price of HPE shares?
Over the past week, the price has changed by -6.92%, over one month by -7.51%, over three months by +13.23% and over the past year by +19.69%.
Is Hewlett Packard Enterprise a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HPE is around 25.14 USD . This means that HPE is currently overvalued and has a potential downside of 8.04%.
Is HPE a buy, sell or hold?
- Strong Buy: 6
- Buy: 2
- Hold: 8
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the HPE price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 26.3 | 12.8% |
| Analysts Target Price | 26.3 | 12.8% |
| ValueRay Target Price | 27.6 | 18.5% |
Last update: 2025-10-17 02:29
HPE Fundamental Data Overview
P/E Trailing = 29.4588
P/E Forward = 10.4384
P/S = 0.9989
P/B = 1.3237
P/EG = 4.7461
Beta = 1.458
Revenue TTM = 33.02b USD
EBIT TTM = 1.35b USD
EBITDA TTM = 3.85b USD
Long Term Debt = 16.85b USD (from longTermDebt, last quarter)
Short Term Debt = 6.80b USD (from shortTermDebt, last quarter)
Debt = 23.65b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 19.08b USD (from netDebt column, last quarter)
Enterprise Value = 52.12b USD (33.04b + Debt 23.65b - CCE 4.57b)
Interest Coverage Ratio = 6.56 (Ebit TTM 1.35b / Interest Expense TTM 206.0m)
FCF Yield = 3.60% (FCF TTM 1.88b / Enterprise Value 52.12b)
FCF Margin = 5.68% (FCF TTM 1.88b / Revenue TTM 33.02b)
Net Margin = 3.78% (Net Income TTM 1.25b / Revenue TTM 33.02b)
Gross Margin = 27.96% ((Revenue TTM 33.02b - Cost of Revenue TTM 23.78b) / Revenue TTM)
Gross Margin QoQ = 25.89% (prev 27.58%)
Tobins Q-Ratio = 0.67 (Enterprise Value 52.12b / Total Assets 77.34b)
Interest Expense / Debt = 0.01% (Interest Expense 2.00m / Debt 23.65b)
Taxrate = -5.90% (negative due to tax credits) (-17.0m / 288.0m)
NOPAT = 1.43b (EBIT 1.35b * (1 - -5.90%)) [negative tax rate / tax credits]
Current Ratio = 0.95 (Total Current Assets 26.00b / Total Current Liabilities 27.35b)
Debt / Equity = 0.97 (Debt 23.65b / totalStockholderEquity, last quarter 24.40b)
Debt / EBITDA = 4.95 (Net Debt 19.08b / EBITDA 3.85b)
Debt / FCF = 10.17 (Net Debt 19.08b / FCF TTM 1.88b)
Total Stockholder Equity = 24.58b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.61% (Net Income 1.25b / Total Assets 77.34b)
RoE = 5.08% (Net Income TTM 1.25b / Total Stockholder Equity 24.58b)
RoCE = 3.26% (EBIT 1.35b / Capital Employed (Equity 24.58b + L.T.Debt 16.85b))
RoIC = 3.26% (NOPAT 1.43b / Invested Capital 43.90b)
WACC = 6.64% (E(33.04b)/V(56.69b) * Re(11.39%) + D(23.65b)/V(56.69b) * Rd(0.01%) * (1-Tc(-0.06)))
Discount Rate = 11.39% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.95%
[DCF Debug] Terminal Value 63.09% ; FCFE base≈2.21b ; Y1≈1.84b ; Y5≈1.36b
Fair Price DCF = 11.66 (DCF Value 15.39b / Shares Outstanding 1.32b; 5y FCF grow -20.20% → 3.0% )
EPS Correlation: -64.40 | EPS CAGR: -8.98% | SUE: 1.19 | # QB: 2
Revenue Correlation: 52.85 | Revenue CAGR: 6.32% | SUE: 1.46 | # QB: 1
Additional Sources for HPE Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle