HPEHPE
US • —
$45.11
P/E
40.46
PEG
4.93
FCF Yield
—
Rev Growth YoY
+22.6% YoY
Gross Margin
33.9%
Health Score
5/10
D/E Ratio
0.91
Confidence
LOW
Business Snapshot
Hewlett Packard Enterprise (HPE) provides enterprise IT infrastructure solutions, including servers, storage, networking, and high-performance computing. The company also offers hybrid cloud and edge-to-cloud services, positioning it in the highly competitive enterprise technology market as a challenger to larger players like Dell Technologies and cloud hyperscalers. HPE's defining characteristic is its strategic pivot toward as-a-service and edge computing, aiming to differentiate through consumption-based IT models. The company reported strong revenue growth of 22.6% year-over-year, indicating robust demand for its core offerings.
Financial Health
Gross margin stands at 33.9%, though there is no prior-year figure available for comparison. Net margin is thin at 4.0%, reflecting a low-margin hardware-heavy business model where a significant portion of revenue is consumed by cost of goods sold...
Risk Assessment
- VALUATION — P/E of 40.46x trades at a substantial premium to the sector average of 22x, leaving the stock vulnerable to multiple contraction.
- EARNINGS QUALITY — Earnings growth of 8.2% lags revenue growth of 22.6%, signaling potential margin compression or rising costs.
- DEBT / LIQUIDITY — Current ratio of 1.01x is near the danger zone below 1.0x, indicating limited short-term liquidity buffer.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 33.9%, though there is no prior-year figure available for comparison. Net margin is thin at 4.0%, reflecting a low-margin hardware-heavy business model where a significant portion of revenue is consumed by cost of goods sold. The balance sheet appears moderate with a debt/equity ratio of 0.91x, indicating the company uses a balanced mix of debt and equity financing, while the current ratio of 1.01x suggests near-term liquidity is adequate but tight. Return on equity is a modest 6.3%, below what would typically characterise a capital-efficient business. Free cash flow data is unavailable, making it impossible to assess the company's cash generation or its capacity for dividends or reinvestment.
- VALUATION — P/E of 40.46x trades at a substantial premium to the sector average of 22x, leaving the stock vulnerable to multiple contraction. - EARNINGS QUALITY — Earnings growth of 8.2% lags revenue growth of 22.6%, signaling potential margin compression or rising costs. - DEBT / LIQUIDITY — Current ratio of 1.01x is near the danger zone below 1.0x, indicating limited short-term liquidity buffer. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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