HPENEUTRAL

HPE FCF Yield Analysis

1.0%

Higher than 27% of TECHNOLOGY sector peers

Updated 149h ago·SEC filings & market data

Key Takeaway

At a 1.0% FCF yield, HPE generates $1 of free cash flow for every $100 of market value, a measure of cash return relative to its stock price.

Sector Performance

27th percentile

HPE

1.0%

Sector Median

1.3%

Sector Avg

2.3%

Prior Period

1.1%(Jul 2026)

↓ Declining

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Deep Analysis

At a 1.0% FCF yield, HPE generates $1 of free cash flow for every $100 of market value, a measure of cash return relative to its stock price.

This sits below the sector median of 1.4% and places HPE at the 27th percentile among technology peers, meaning most competitors offer a higher cash yield. The year-over-year change is N/A, but the quarter-over-quarter change is -9.1%, reflecting a drop from 1.1% to 1.0% in the most recent quarter. The combination of a below-median yield and a quarterly decline implies lower cash-based returns relative to valuation, which can signal reduced income opportunity or elevated valuation risk. This metric supports the overall NEUTRAL verdict, as the yield is weak but not extreme, and the recent deterioration is limited.

Frequently Asked Questions

What does the FCF Yield tell investors about HPE?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does HPE's FCF Yield compare to its sector?

HPE's FCF Yield of 1.0% compares to a TECHNOLOGY sector median of 1.3%, placing it in the 27th percentile.

Who are HPE's closest peers by FCF Yield?

The closest TECHNOLOGY peers by FCF Yield include: KLAC (1.3%), LRCX (1.2%), TXN (1.0%), MRVL (0.6%), CSCO (3.0%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.