HPEHPE
US • TECHNOLOGY
$47.69
P/E
42.77
PEG
0.85
FCF Yield
6.2%
Rev Growth YoY
+40.0% YoY
Gross Margin
33.8%
Health Score
7/10
D/E Ratio
0.91
Confidence
MEDIUM
Business Snapshot
Hewlett Packard Enterprise (HPE) provides enterprise IT infrastructure, including servers, storage, networking, and High-Performance Computing & AI solutions. The company operates in the highly competitive communication equipment and data center infrastructure market, where it holds a position as a major incumbent alongside Dell, Cisco, and Super Micro Computer. HPE is a large-cap company with a market capitalisation of $63.09B and trailing twelve-month revenue of $38.79B. A defining characteristic of HPE's current position is its strong revenue growth, driven largely by demand for AI-optimised server infrastructure.
Financial Health
HPE reports a gross margin of 33.8% and a net margin of 4.0%, with no prior-year comparison available for margins. The balance sheet appears manageable, with a Debt/Equity ratio of 0.91x and a Current Ratio of 1.01x, indicating adequate short-term liquidity and a reasonable leverage profile...
Risk Assessment
- VALUATION — The trailing P/E of 42.77x is nearly double the sector average of 22x, making the stock expensive purely on earnings-multiple terms.
- EARNINGS QUALITY — While 4 of 4 quarters beat estimates, earnings growth year-over-year is negative at -30.3%, creating a divergence between headline revenue growth and bottom-line profitability.
- 52-WEEK POSITION — The current price of $47.69 is well below the midpoint (not calculated here) of its 52-week range, trading 25.6% below the 52-week high of $64.06.
- TECHNICALS — RSI and MACD momentum data unavailable for this period; price position relative to moving averages is the primary available signal.
- REVENUE DECELERATION — With no QoQ revenue data available, the full pace of the current growth trend cannot be confirmed, introducing uncertainty about a potential slowdown....
HPE reports a gross margin of 33.8% and a net margin of 4.0%, with no prior-year comparison available for margins. The balance sheet appears manageable, with a Debt/Equity ratio of 0.91x and a Current Ratio of 1.01x, indicating adequate short-term liquidity and a reasonable leverage profile. Free cash flow is a positive $3.93B, producing a healthy FCF yield of 6.2%, which provides the company with solid capacity for reinvestment, dividends, and share buybacks. Overall, HPE demonstrates a solid financial profile with strong cash generation, though its thin net margin signals a lower-margin business model that is sensitive to operational costs and revenue mix.
- VALUATION — The trailing P/E of 42.77x is nearly double the sector average of 22x, making the stock expensive purely on earnings-multiple terms. - EARNINGS QUALITY — While 4 of 4 quarters beat estimates, earnings growth year-over-year is negative at -30.3%, creating a divergence between headline revenue growth and bottom-line profitability. - 52-WEEK POSITION — The current price of $47.69 is well below the midpoint (not calculated here) of its 52-week range, trading 25.6% below the 52-week high of $64.06. - TECHNICALS — RSI and MACD momentum data unavailable for this period; price position relative to moving averages is the primary available signal. - REVENUE DECELERATION — With no QoQ revenue data available, the full pace of the current growth trend cannot be confirmed, introducing uncertainty about a potential slowdown.
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