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HPE

Hewlett Packard EnterpriseNYSE:HPE Stock Report

Market Cap

US$18.5b

7D

9.0%

1Y

51.2%

Updated

28 Sep, 2021

Data

Company Financials +
HPE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends3/6

HPE Overview

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly.

Hewlett Packard Enterprise Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hewlett Packard Enterprise
Historical stock prices
Current Share PriceUS$14.18
52 Week HighUS$8.29
52 Week LowUS$16.74
Beta1.23
1 Month Change-8.04%
3 Month Change-2.74%
1 Year Change51.17%
3 Year Change-14.22%
5 Year Change-36.67%
Change since IPO-14.32%

Recent News & Updates

Shareholder Returns

HPEUS TechUS Market
7D9.0%0.6%2.0%
1Y51.2%30.1%32.8%

Return vs Industry: HPE exceeded the US Tech industry which returned 30.1% over the past year.

Return vs Market: HPE exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is HPE's price volatile compared to industry and market?
HPE volatility
HPE Beta1.23
Industry Beta1.2
Market Beta1

Stable Share Price: HPE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HPE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193959,400Antonio Nerihttps://www.hpe.com

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem, HPE Synergy, and HPE ProLiant; storage solutions; and solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products; and HPE Superdome Flex, HPE Nonstop, HPE Integrity, HPE Moonshot, and HPE Edgeline products.

Hewlett Packard Enterprise Fundamentals Summary

How do Hewlett Packard Enterprise's earnings and revenue compare to its market cap?
HPE fundamental statistics
Market CapUS$18.55b
Earnings (TTM)US$1.03b
Revenue (TTM)US$27.64b

18.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HPE income statement (TTM)
RevenueUS$27.64b
Cost of RevenueUS$18.25b
Gross ProfitUS$9.16b
ExpensesUS$8.13b
EarningsUS$1.03b

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.79
Gross Margin33.15%
Net Profit Margin3.73%
Debt/Equity Ratio95.0%

How did HPE perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

61%

Payout Ratio

Valuation

Is Hewlett Packard Enterprise undervalued compared to its fair value and its price relative to the market?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPE ($14.18) is trading below our estimate of fair value ($22.77)

Significantly Below Fair Value: HPE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HPE is good value based on its PE Ratio (18x) compared to the US Tech industry average (21.2x).

PE vs Market: HPE's PE Ratio (18x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: HPE is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: HPE is good value based on its PB Ratio (1.1x) compared to the US Tech industry average (2.3x).


Future Growth

How is Hewlett Packard Enterprise forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPE's forecast earnings growth (13.3% per year) is above the savings rate (2%).

Earnings vs Market: HPE's earnings (13.3% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: HPE's earnings are forecast to grow, but not significantly.

Revenue vs Market: HPE's revenue (2.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: HPE's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HPE's Return on Equity is forecast to be low in 3 years time (14.7%).


Past Performance

How has Hewlett Packard Enterprise performed over the past 5 years?

-46.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPE has a large one-off loss of $1.1B impacting its July 31 2021 financial results.

Growing Profit Margin: HPE's current net profit margins (3.7%) are higher than last year (0%).


Past Earnings Growth Analysis

Earnings Trend: HPE's earnings have declined by 46% per year over the past 5 years.

Accelerating Growth: HPE's earnings growth over the past year (103000%) exceeds its 5-year average (-46% per year).

Earnings vs Industry: HPE earnings growth over the past year (103000%) exceeded the Tech industry 48.6%.


Return on Equity

High ROE: HPE's Return on Equity (6%) is considered low.


Financial Health

How is Hewlett Packard Enterprise's financial position?


Financial Position Analysis

Short Term Liabilities: HPE's short term assets ($18.7B) do not cover its short term liabilities ($19.6B).

Long Term Liabilities: HPE's short term assets ($18.7B) do not cover its long term liabilities ($19.7B).


Debt to Equity History and Analysis

Debt Level: HPE's debt to equity ratio (95%) is considered high.

Reducing Debt: HPE's debt to equity ratio has increased from 49.6% to 95% over the past 5 years.

Debt Coverage: HPE's debt is well covered by operating cash flow (22.6%).

Interest Coverage: HPE's interest payments on its debt are well covered by EBIT (37.9x coverage).


Balance Sheet


Dividend

What is Hewlett Packard Enterprise current dividend yield, its reliability and sustainability?

3.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HPE's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: HPE's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HPE has been paying a dividend for less than 10 years.

Growing Dividend: HPE's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.7%), HPE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HPE's dividends in 3 years are forecast to be well covered by earnings (26% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Antonio Neri (54 yo)

3.58yrs

Tenure

US$13,489,396

Compensation

Mr. Antonio Fabio Neri has been President of Hewlett Packard Enterprise Company since June 21, 2017. Mr. Neri has been Chief Executive Officer and Director of Hewlett Packard Enterprise Company since Febru...


CEO Compensation Analysis

Compensation vs Market: Antonio's total compensation ($USD13.49M) is about average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Antonio's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HPE's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: HPE's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hewlett Packard Enterprise Company's employee growth, exchange listings and data sources


Key Information

  • Name: Hewlett Packard Enterprise Company
  • Ticker: HPE
  • Exchange: NYSE
  • Founded: 1939
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$18.548b
  • Shares outstanding: 1.31b
  • Website: https://www.hpe.com

Number of Employees


Location

  • Hewlett Packard Enterprise Company
  • 11445 Compaq Center West Drive
  • Houston
  • Texas
  • 77070
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/28 23:27
End of Day Share Price2021/09/28 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.