Hewlett Packard Enterprise Co (HPE)
Information Technology · Technology Hardware, Storage & Peripherals · US stock · S&P 500 component
$55.47
▼ -2.70 (4.64%)
Fair valueFair
$62 +11.6% to fair value
$31fair band $53–$75$93
Day's range
$53.91 – $56.78
52-week range
$19.84 – $73.56
About Hewlett Packard Enterprise Co
Hewlett Packard Enterprise supplies technology infrastructure to businesses and governments. Its portfolio covers servers, data storage, networking, including the Aruba wireless line, and high-performance computing, offered alongside HPE GreenLake, a subscription-style cloud service model. Customers include enterprises, public sector bodies, service providers and research institutions. It also runs a financing arm, and it was formed when Hewlett-Packard split into two companies.
HPE earns revenue from hardware, software and services, together with recurring income from as-a-service subscriptions and its financing business. Revenue is $41.9 billion over the last twelve months, with growth of 6.4% a year across three years. The operating margin is 6.2%, and the business earns a profit of 6% on the capital invested in it. It carries net debt of 2.2 times EBITDA, and the dividend yield is 1.0%. On the site's X-Ray Score it receives 45 out of 100.
Price chart
52-wk range $19.84 – $73.56Volume 14,781,368Daily, split-adjusted
Vitals
Market cap$80.4B
52-week range$19.84 – $73.56
Volume (last day)14,781,368
P/E (TTM)27.6
EBIT / EV yield2.8%
Free-cash-flow yield5.2%
Dividend yield1.0%
Revenue (TTM)$41.9B
Net income (TTM)$2.8B
Operating margin6.2%
Return on capital5.9%
Debt incl. leases$19.5B
Cash & securities$6.2B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$62middle half of models $56 – $63
Fair
+11.6% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $55
Undervalued < $53Fair $53 – $75Overvalued > $75
P/E multiple
$51
P/B multiple
$58
P/S multiple
$88
EV/EBITDA multiple
$60
EV/EBIT multiple
$44
EV/revenue multiple
$79
10-year DCF, EBITDA exit
$56
5-year DCF, EBITDA exit
$60
10-year DCF, revenue exit
$60
5-year DCF, revenue exit
$64
10-year DCF, growth exit · not used
$21
5-year DCF, growth exit · not used
$17
Dividend discount, stable · not used
$15
Dividend discount, multi-stage · not used
$22
Earnings power value · not used
$12
Growth the price implies
29.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
67/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield2.8%
Free-cash-flow yield5.2%
Fair value vs price1.1×
Growth
Weak
43/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)6.4%
Growth consistency100%
Profitability
Weak
30/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital5.9%
Operating margin6.2%
Financial health
Weak
31/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA2.2×
Interest coverNo interest cost
Dividends
Fair
57/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.0%
Dividends vs free cash flow20%
Dividend growth3.3%
Quarterly results: last 6 quarters
+5.9%
Apr '25
+18.5%
Jul '25
+14.4%
Oct '25
+18.4%
Jan '26
+40.0%
Apr '26
+33.7%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $12.2B, diluted EPS $1.06.
Compare with peers
SNDK Sandisk Corp73 SMCI Super Micro Computer,...58 STX Seagate Technology Hol...56 NTAP NetApp, Inc.54Other Technology Hardware, Storage & Peripherals companies by X-Ray Score.
SWOT analysis: Hewlett Packard Enterprise Co
Strengthsinside the company
- Free cash flow equals 5.2% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Return on invested capital is only 5.9% (median 57.7% for industry peers), so the business earns little above its cost of capital.
- Operating margin of 6.2% is thin against 25.0% for industry peers.
- Altman Z-score of 0.9 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Revenue growth picked up to 13.8% last year from 6.4% a year over three years.
- Dividends use only 20% of free cash flow, which leaves room to raise them.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare HPE with peers and sector
Medians of 9 Technology Hardware, Storage & Peripherals peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): AAPL 53, DELL 53, SNDK 73, STX 56, WDC 52, NTAP 54.
| Metric | HPE | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 45 | 53 | 50 |
| Valuation | 67 | 38 | 50 |
| Growth | 43 | 73 | 54 |
| Profitability | 30 | 58 | 50 |
| Financial health | 30 | 61 | 50 |
| Dividends | 56 | 43 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
HPE ranks #50 of 75 in Information Technology and #9 of 10 in Technology Hardware, Storage & Peripherals by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for HPE
Each factor is rated by where HPE stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 5 Average · 9 Bad of 20
Growth: 0 · 2 · 0
Profitability: 0 · 0 · 4
Financial strength: 1 · 0 · 3
Valuation: 4 · 1 · 0
Cash flow: 1 · 1 · 2
Efficiency: 0 · 1 · 0
| Factor | HPE | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +6.4% | Average beats 43% | +9.7% | – | – |
| Revenue growth, last year | +13.8% | Average beats 51% | +13.7% | +3.0% | ▲ Better |
| Profitability | |||||
| Operating margin | 6.2% | Bad beats 13% | 20.3% | 4.1% | ▲ Better |
| Net margin | 6.7% | Bad beats 18% | 17.8% | 7.0% | ≈ In line |
| Return on invested capital | 5.9% | Bad beats 12% | 19.4% | – | – |
| Return on equity | 10.5% | Bad beats 24% | 21.0% | 9.6% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 2.2x | Bad beats 20% | 0.8x | 3.4x | ▲ Better |
| Interest cover | 50.0x | Good beats 75% | 23.0x | 2.3x | ▲ Better |
| Current ratio | 1.11 | Bad beats 29% | 1.57 | 0.91 | ▲ Better |
| Piotroski F-score | 5 / 9 | Bad beats 21% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 28.8x | Average beats 63% | 33.6x | 10.1x | ▼ Worse |
| Price / book | 3.0x | Good beats 86% | 8.3x | 1.0x | ▼ Worse |
| Price / sales | 1.9x | Good beats 91% | 6.9x | 0.7x | ▼ Worse |
| EV / EBITDA | 15.4x | Good beats 76% | 24.7x | 8.6x | ▼ Worse |
| Free cash flow yield | 5.2% | Good beats 73% | 3.4% | 7.8% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 9.9% | Bad beats 14% | 22.3% | 5.5% | ▲ Better |
| Cash from operations / net income | 2.40 | Good beats 83% | 1.39 | 2.19 | ≈ In line |
| Free cash flow growth, 3 years a year | −24.7% | Bad beats 2% | +15.4% | – | – |
| Accruals (lower is better) | −4.7% | Average beats 53% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 54 days | Average beats 66% | 63 days | 52 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 3 Average · ● 7 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 40/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $27.8B | $28.5B | $29.1B | $30.1B | $34.3B |
| Operating income | $1.1B | $782M | $2.1B | $2.2B | −$437M |
| Net income | $3.4B | $868M | $2.0B | $2.6B | $57M |
| Operating cash flow | $5.9B | $4.6B | $4.4B | $4.3B | $2.9B |
| Operating margin | 4.1% | 2.7% | 7.2% | 7.3% | -1.3% |
| Free cash flow | $3.4B | $1.5B | $1.6B | $2.0B | $627M |
| Diluted EPS | $2.58 | $0.66 | $1.54 | $1.93 | $-0.04 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
7 bullish · 1 neutral · 8 bearish
Weekly
Strongly bullish
9 bullish · 1 neutral · 2 bearish
Monthly
Strongly bullish
7 bullish · 0 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 61.51 | Bearish |
| EMA 10 | 59.87 | Bearish |
| SMA 20 | 64.09 | Bearish |
| EMA 20 | 61.49 | Bearish |
| SMA 50 | 59.39 | Bearish |
| EMA 50 | 59.09 | Bearish |
| SMA 100 | 53.81 | Bullish |
| EMA 100 | 53.12 | Bullish |
| SMA 200 | 39.53 | Bullish |
| EMA 200 | 44.18 | Bullish |
Oscillators (daily)
| RSI (14) | 39.68 | Neutral |
| MACD (12, 26) | -0.88 | Bearish |
| Momentum (12) | -21.30 | Bearish |
| Stochastic %K (14) | 7.94 | Bullish |
| Williams %R (14) | -92.06 | Bullish |
| CCI (20) | -118.4 | Bullish |
Pivot points (classic, last session)
S3 51.12 | S2 52.52 | S1 53.99 | Pivot 55.39 | R1 56.86 | R2 58.26 | R3 59.73 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.57 USD
Yield on today's price
1.03%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.1430 | |
| 0.1430 | |
| 0.1430 | |
| 0.1430 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold HPE
| ETF | Share of the fund |
|---|---|
| SKYY First Trust Cloud Computing | 2.05% |
| NULV Nuveen ESG Large-Cap Value | 1.94% |
| RPV Invesco S&P 500 Pure Value | 1.66% |
| CGMM Capital Group U.S. Small and Mid Cap | 1.59% |
| VLUE iShares MSCI USA Value Factor | 1.57% |
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.44% |
| CHAT Roundhill Generative AI & Technology | 1.33% |
| CLSE Convergence Long/Short Equity | 1.27% |
The eight funds with the largest weight in HPE among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
HPE SEC filings
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Entered a material agreement; Results of operations
8-KSEC EDGAR
Regulation FD disclosure
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.