HPENEUTRAL

Return on Equity (ROE)

6.3%

Updated 248h ago

Sector Performance

25th percentile

HPE

6.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—a 6.3% ROE means HPE earned $0.063 for every $1 of equity.

That is well below the sector median of 13.8%, placing HPE at the 24th percentile among its peers, indicating weaker profitability relative to the industry. The year-over-year change is not available, but the quarter-over-quarter jump of +3050.0% reflects a stark improvement from the prior quarter's 0.2% ROE. While the current ROE remains low, the sharp upward trend from a very low base suggests the company may be recovering from a period of depressed returns, though the sustainability of that improvement is uncertain. This combination of a low level with a strong recent uptick implies a mixed risk profile: the opportunity lies in further recovery, but the risk is that the gain may not persist. The NEUTRAL verdict is supported because the metric’s low absolute standing is offset by a notable positive trend, balancing the case for buying or selling.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HPE?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are HPE's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.