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Hewlett Packard Enterprise

NYSE:HPE
Snowflake Description

Slightly overvalued with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HPE
NYSE
$20B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Hewlett Packard Enterprise Company operates as a technology company. The last earnings update was 20 days ago. More info.


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HPE Share Price and Events
7 Day Returns
2.5%
NYSE:HPE
1.8%
US Tech
1.2%
US Market
1 Year Returns
-4.6%
NYSE:HPE
3.8%
US Tech
2.3%
US Market
HPE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hewlett Packard Enterprise (HPE) 2.5% -3.5% -3.8% -4.6% -25.1% -
US Tech 1.8% 4.1% 4.2% 3.8% 91.1% 93.5%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • HPE underperformed the Tech industry which returned 3.8% over the past year.
  • HPE underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
HPE
Industry
5yr Volatility vs Market
Related Companies

HPE Value

 Is Hewlett Packard Enterprise undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hewlett Packard Enterprise to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hewlett Packard Enterprise.

NYSE:HPE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HPE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.089 (1 + (1- 21%) (63.87%))
1.428
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.43
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.428 * 5.96%)
11.24%

Discounted Cash Flow Calculation for NYSE:HPE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hewlett Packard Enterprise is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HPE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.24%)
2019 1,520.00 Analyst x7 1,366.40
2020 2,027.86 Analyst x7 1,638.73
2021 2,210.75 Analyst x4 1,605.99
2022 2,362.49 Est @ 6.86% 1,542.80
2023 2,495.35 Est @ 5.62% 1,464.89
2024 2,614.02 Est @ 4.76% 1,379.49
2025 2,722.45 Est @ 4.15% 1,291.53
2026 2,823.80 Est @ 3.72% 1,204.24
2027 2,920.51 Est @ 3.42% 1,119.62
2028 3,014.44 Est @ 3.22% 1,038.85
Present value of next 10 years cash flows $13,652.55
NYSE:HPE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,014.44 × (1 + 2.73%) ÷ (11.24% – 2.73%)
$36,384.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $36,384.72 ÷ (1 + 11.24%)10
$12,539.12
NYSE:HPE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $13,652.55 + $12,539.12
$26,191.67
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $26,191.67 / 1,339.15
$19.56
NYSE:HPE Discount to Share Price
Calculation Result
Value per share (USD) From above. $19.56
Current discount Discount to share price of $14.71
= -1 x ($14.71 - $19.56) / $19.56
24.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hewlett Packard Enterprise is available for.
Intrinsic value
25%
Share price is $14.71 vs Future cash flow value of $19.56
Current Discount Checks
For Hewlett Packard Enterprise to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hewlett Packard Enterprise's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hewlett Packard Enterprise's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hewlett Packard Enterprise's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hewlett Packard Enterprise's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HPE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $0.19
NYSE:HPE Share Price ** NYSE (2019-06-19) in USD $14.71
United States of America Tech Industry PE Ratio Median Figure of 14 Publicly-Listed Tech Companies 17.77x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hewlett Packard Enterprise.

NYSE:HPE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HPE Share Price ÷ EPS (both in USD)

= 14.71 ÷ 0.19

76.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hewlett Packard Enterprise is overvalued based on earnings compared to the US Tech industry average.
  • Hewlett Packard Enterprise is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Hewlett Packard Enterprise's expected growth come at a high price?
Raw Data
NYSE:HPE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 76.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
17.7%per year
United States of America Tech Industry PEG Ratio Median Figure of 8 Publicly-Listed Tech Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:HPE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 76.51x ÷ 17.7%

4.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hewlett Packard Enterprise is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hewlett Packard Enterprise's assets?
Raw Data
NYSE:HPE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $13.52
NYSE:HPE Share Price * NYSE (2019-06-19) in USD $14.71
United States of America Tech Industry PB Ratio Median Figure of 34 Publicly-Listed Tech Companies 1.67x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NYSE:HPE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HPE Share Price ÷ Book Value per Share (both in USD)

= 14.71 ÷ 13.52

1.09x

* Primary Listing of Hewlett Packard Enterprise.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hewlett Packard Enterprise is good value based on assets compared to the US Tech industry average.
X
Value checks
We assess Hewlett Packard Enterprise's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tech industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tech industry average (and greater than 0)? (1 check)
  5. Hewlett Packard Enterprise has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HPE Future Performance

 How is Hewlett Packard Enterprise expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hewlett Packard Enterprise expected to grow at an attractive rate?
  • Hewlett Packard Enterprise's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Hewlett Packard Enterprise's earnings growth is expected to exceed the United States of America market average.
  • Hewlett Packard Enterprise's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HPE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HPE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 17.7%
NYSE:HPE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 1.2%
United States of America Tech Industry Earnings Growth Rate Market Cap Weighted Average 5%
United States of America Tech Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HPE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HPE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-10-31 31,882 1
2022-10-31 31,268 2
2021-10-31 30,789 4,546 1,502 10
2020-10-31 30,408 4,263 1,702 21
2019-10-31 30,080 3,854 1,506 21
NYSE:HPE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 30,413 3,944 276
2019-01-31 30,731 3,204 707
2018-10-31 30,852 2,964 2,012
2018-07-31 30,566 2,469 3,162
2018-04-30 30,303 2,175 2,995
2018-01-31 29,643 2,667 1,667
2017-10-31 28,871 1,335 436
2017-07-31 26,445 2,716 154
2017-04-30 26,949 3,475 2,326
2017-01-31 28,650 3,843 3,126
2016-10-31 30,280 5,056 3,237
2016-07-31 38,494 2,588 4,526

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hewlett Packard Enterprise's earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
  • Hewlett Packard Enterprise's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HPE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Hewlett Packard Enterprise Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HPE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-10-31
2022-10-31
2021-10-31 1.32 1.54 0.91 5.00
2020-10-31 1.25 1.56 0.98 9.00
2019-10-31 1.06 1.23 0.99 9.00
NYSE:HPE Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 0.19
2019-01-31 0.48
2018-10-31 1.32
2018-07-31 2.02
2018-04-30 1.87
2018-01-31 1.02
2017-10-31 0.26
2017-07-31 0.09
2017-04-30 1.39
2017-01-31 1.85
2016-10-31 1.89
2016-07-31 2.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hewlett Packard Enterprise is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hewlett Packard Enterprise's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hewlett Packard Enterprise has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HPE Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hewlett Packard Enterprise's growth in the last year to its industry (Tech).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hewlett Packard Enterprise's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Hewlett Packard Enterprise's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hewlett Packard Enterprise's 1-year earnings growth is negative, it can't be compared to the US Tech industry average.
Earnings and Revenue History
Hewlett Packard Enterprise's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hewlett Packard Enterprise Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HPE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 30,413.00 276.00 4,844.00 1,794.00
2019-01-31 30,731.00 707.00 4,861.00 1,740.00
2018-10-31 30,852.00 2,012.00 4,851.00 1,663.00
2018-07-31 30,566.00 3,162.00 4,890.00 1,590.00
2018-04-30 30,303.00 2,995.00 4,972.00 1,546.00
2018-01-31 29,643.00 1,667.00 4,987.00 1,519.00
2017-10-31 28,871.00 436.00 5,006.00 1,486.00
2017-07-31 26,445.00 154.00 4,199.00 1,082.00
2017-04-30 26,949.00 2,326.00 4,489.00 1,243.00
2017-01-31 28,650.00 3,126.00 4,908.00 1,488.00
2016-10-31 30,280.00 3,237.00 5,380.00 1,714.00
2016-07-31 38,494.00 4,526.00 6,937.00 2,406.00
2016-04-30 43,546.00 2,293.00 7,402.00 2,457.00
2016-01-31 47,586.00 2,276.00 7,728.00 2,388.00
2015-10-31 31,077.00 2,640.00 5,142.00 1,676.00
2015-07-31 52,732.00 1,592.00 8,163.00 2,234.00
2015-04-30 53,379.00 1,634.00 8,326.00 2,206.00
2015-01-31 54,503.00 1,762.00 8,521.00 2,191.50
2014-10-31 55,123.00 1,648.00 8,717.00 2,197.00
2013-10-31 57,371.00 2,051.00 8,601.00 1,956.00
2012-10-31 61,042.00 -14,761.00 8,678.00 2,120.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hewlett Packard Enterprise has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hewlett Packard Enterprise used its assets less efficiently than the US Tech industry average last year based on Return on Assets.
  • Hewlett Packard Enterprise has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hewlett Packard Enterprise's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tech industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hewlett Packard Enterprise has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HPE Health

 How is Hewlett Packard Enterprise's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hewlett Packard Enterprise's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hewlett Packard Enterprise's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hewlett Packard Enterprise's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hewlett Packard Enterprise's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hewlett Packard Enterprise Company Filings, last reported 1 month ago.

NYSE:HPE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 18,241.00 12,581.00 3,585.00
2019-01-31 18,335.00 12,548.00 3,781.00
2018-10-31 21,274.00 12,141.00 4,880.00
2018-07-31 23,462.00 12,625.00 5,193.00
2018-04-30 23,966.00 14,177.00 6,986.00
2018-01-31 23,989.00 14,235.00 7,673.00
2017-10-31 23,505.00 14,032.00 9,579.00
2017-07-31 29,050.00 16,596.00 7,757.00
2017-04-30 29,047.00 14,036.00 8,101.00
2017-01-31 31,574.00 15,949.00 9,858.00
2016-10-31 31,518.00 15,693.00 12,987.00
2016-07-31 32,826.00 16,265.00 10,743.00
2016-04-30 32,024.00 16,212.00 9,010.00
2016-01-31 31,634.00 16,139.00 8,505.00
2015-10-31 33,918.00 15,794.00 9,842.00
2015-07-31 40,726.00 1,245.00 2,774.00
2015-04-30 38,237.00 1,448.00 2,719.00
2015-01-31 37,172.00 1,379.00 2,319.00
2014-10-31 37,172.00 1,379.00 2,319.00
2013-10-31 38,375.00 1,675.00 2,182.00
2012-10-31
  • Hewlett Packard Enterprise's level of debt (69%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (4% vs 69% today).
  • Debt is well covered by operating cash flow (31.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).
X
Financial health checks
We assess Hewlett Packard Enterprise's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hewlett Packard Enterprise has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HPE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.06%
Current annual income from Hewlett Packard Enterprise dividends. Estimated to be 3.3% next year.
If you bought $2,000 of Hewlett Packard Enterprise shares you are expected to receive $61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hewlett Packard Enterprise's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Hewlett Packard Enterprise's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HPE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Tech Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HPE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-10-31
2022-10-31
2021-10-31 0.53 7.00
2020-10-31 0.49 13.00
2019-10-31 0.46 13.00
NYSE:HPE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-04 0.450 2.983
2019-01-31 0.450 2.832
2018-09-20 0.450 3.018
2018-07-19 0.450 2.790
2018-04-05 0.450 2.766
2018-01-18 0.300 1.737
2017-10-19 0.300 2.105
2017-07-20 0.260 1.661
2017-03-23 0.260 1.436
2017-01-26 0.260 1.123
2016-11-10 0.260 1.111
2016-07-28 0.220 1.000
2016-03-24 0.220 1.232
2016-01-28 0.220 1.536
2015-11-12 0.220 1.568

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Hewlett Packard Enterprise has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Hewlett Packard Enterprise only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Hewlett Packard Enterprise's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Hewlett Packard Enterprise's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hewlett Packard Enterprise afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hewlett Packard Enterprise has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HPE Management

 What is the CEO of Hewlett Packard Enterprise's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Antonio Neri
COMPENSATION $12,623,005
AGE 51
TENURE AS CEO 1.3 years
CEO Bio

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 February 1, 2018. Mr. Neri served as Executive Vice President and General Manager of Enterprise Group at Hewlett Packard Enterprise Company from November 2015 to June 21, 2017. Mr. Neri has been Senior Vice President and General Manager of Enterprise Group at HP Co. since October 2014 to November 2015. He served as Executive Vice President and General Manager of Enterprise Group at HP Inc. from August 6, 2015 to November 1, 2015. Mr. Neri serves as the Senior Vice President and General Manager of HP Technology Services. He was responsible for the day-to-day management, operations and delivery of the HP Enterprise Group business. Mr. Neri served as Senior Vice President at Hewlett-Packard Company since December 2014 until August 6, 2015. He served as Senior Vice President and General Manager for the HP Servers and HP Networking business units from September 2013 to October 2014 and from May 2014 to October 2014 respectively. Mr. Neri served as Senior Vice President and General Manager of the HP Technology Services business unit from August 2011 to September 2013 and as Senior Vice President, Customer Services for the HP Personal Systems Group from 1995 to August 2011. Based in Houston, Texas, he is known for working with customers to use technology to solve their biggest challenges. He served as a Director of H3C Technologies Co., LTD. from May 2016 to July 2017. He served as Vice Chairman at Mphasis Limited from February 28, 2013 to December 5, 2013. He has been Director of Anthem, Inc., since December 6, 2017. Mr. Neri served as a Non-Executive Director at Mphasis Limited from March 1, 2012 to December 5, 2013. He holds a Bachelor of Science in Computer Science studies from Universidad Tecnológica Nacional in Bahia Blanca, Argentina.

CEO Compensation
  • Antonio's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Antonio's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Hewlett Packard Enterprise management team in years:

1.6
Average Tenure
53
Average Age
  • The average tenure for the Hewlett Packard Enterprise management team is less than 2 years, this suggests a new team.
Management Team

Antonio Neri

TITLE
CEO, President & Director
COMPENSATION
$13M
AGE
51
TENURE
1.3 yrs

Tarek Robbiati

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
53
TENURE
0.8 yrs

John Schultz

TITLE
Executive VP
COMPENSATION
$6M
AGE
54
TENURE
1.5 yrs

Phil Davis

TITLE
Chief Sales Officer & President of Hybrid IT Business Group
COMPENSATION
$6M
AGE
50
TENURE
1.6 yrs

Alan May

TITLE
Executive VP & Chief People Officer
COMPENSATION
$5M
AGE
60
TENURE
4 yrs

Jeff Ricci

TITLE
Senior VP
AGE
57
TENURE
3.6 yrs

Andrew Simanek

TITLE
Head of Investor Relations & Director

Rishi Varma

TITLE
Senior VP
AGE
45

Glenn Leon

TITLE
Chief Ethics & Compliance Officer

Andy Isherwood

TITLE
Managing Director of EMEA
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Hewlett Packard Enterprise board of directors in years:

3.6
Average Tenure
62.5
Average Age
  • The tenure for the Hewlett Packard Enterprise board of directors is about average.
Board of Directors

Pat Russo

TITLE
Non Executive Chairman
COMPENSATION
$521K
AGE
66
TENURE
3.6 yrs

Antonio Neri

TITLE
CEO, President & Director
COMPENSATION
$13M
AGE
51
TENURE
1.3 yrs

Mike Angelakis

TITLE
Independent Director
COMPENSATION
$334K
AGE
53
TENURE
3.6 yrs

Pam Carter

TITLE
Independent Director
COMPENSATION
$325K
AGE
68
TENURE
3.6 yrs

Ray Ozzie

TITLE
Independent Director
COMPENSATION
$334K
AGE
62
TENURE
3.6 yrs

Gary Reiner

TITLE
Independent Director
COMPENSATION
$334K
AGE
63
TENURE
3.6 yrs

Maggie Wilderotter

TITLE
Independent Director
COMPENSATION
$344K
AGE
63
TENURE
3.3 yrs

Meg Whitman

TITLE
Executive Director
COMPENSATION
$1M
AGE
62
TENURE
3.6 yrs

Dan Ammann

TITLE
Independent Director
COMPENSATION
$317K
AGE
46
TENURE
3.6 yrs

Ray Lane

TITLE
Independent Director
COMPENSATION
$315K
AGE
71
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Hewlett Packard Enterprise's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hewlett Packard Enterprise has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HPE News

Simply Wall St News

How Many Hewlett Packard Enterprise Company (NYSE:HPE) Shares Do Institutions Own?

Every investor in Hewlett Packard Enterprise Company (NYSE:HPE) should be aware of the most powerful shareholder groups. … Check out our latest analysis for Hewlett Packard Enterprise NYSE:HPE Ownership Summary, June 14th 2019 What Does The Institutional Ownership Tell Us About Hewlett Packard Enterprise? … We can see that Hewlett Packard Enterprise does have institutional investors; and they hold 85% of the stock.

Simply Wall St -

What Does Hewlett Packard Enterprise Company's (NYSE:HPE) Share Price Indicate?

Let's talk about the popular Hewlett Packard Enterprise Company (NYSE:HPE). … According to my valuation model, Hewlett Packard Enterprise seems to be fairly priced at around 17% below my intrinsic value, which means if you buy Hewlett Packard Enterprise today, you’d be paying a fair price for it. … This is because Hewlett Packard Enterprise’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

Calculating The Fair Value Of Hewlett Packard Enterprise Company (NYSE:HPE)

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.53k $2.15k $2.33k $2.72k $2.48k $2.34k $2.26k $2.23k $2.23k $2.25k Growth Rate Estimate Source Analyst x7 Analyst x7 Analyst x4 Analyst x1 Analyst x1 Est @ -5.68% Est @ -3.15% Est @ -1.39% Est @ -0.15% Est @ 0.71% Present Value ($, Millions) Discounted @ 10.94% $1.38k $1.74k $1.71k $1.80k $1.47k $1.25k $1.09k $972.91 $875.60 $794.84 Present Value of 10-year Cash Flow (PVCF)= $13.10b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$2.2b × (1 + 2.7%) ÷ (10.9% – 2.7%) = US$28b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$28b ÷ ( 1 + 10.9%)10 = $9.94b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $23.04b.

Simply Wall St -

Hewlett Packard Enterprise Company (NYSE:HPE) Delivered A Weaker ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.039 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Don't Sell Hewlett Packard Enterprise Company (NYSE:HPE) Before You Read This

We'll look at Hewlett Packard Enterprise Company's (NYSE:HPE) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Hewlett Packard Enterprise's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Examining Hewlett Packard Enterprise Company’s (NYSE:HPE) Weak Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Should You Buy Hewlett Packard Enterprise Company (NYSE:HPE) For Its Dividend?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Hewlett Packard Enterprise Company (NYSE:HPE) has recently paid dividends to shareholders, and currently yields 2.8%. … Let's dig deeper into whether Hewlett Packard Enterprise should have a place in your portfolio.

Simply Wall St -

Did Changing Sentiment Drive Hewlett Packard Enterprise's Share Price Down By 14%?

For example, the Hewlett Packard Enterprise Company (NYSE:HPE) share price is down 14% in the last year. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This fall in the EPS is significantly worse than the 14% the share price fall.

Simply Wall St -

Do Directors Own Hewlett Packard Enterprise Company (NYSE:HPE) Shares?

Every investor in Hewlett Packard Enterprise Company (NYSE:HPE) should be aware of the most powerful shareholder groups. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of US$22b, Hewlett Packard Enterprise is rather large.

Simply Wall St -

Calculating The Intrinsic Value Of Hewlett Packard Enterprise Company (NYSE:HPE)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

HPE Company Info

Description

Hewlett Packard Enterprise Company operates as a technology company. The company operates through four segments: Hybrid IT, Intelligent Edge, Financial Services, and Corporate Investments. The Hybrid IT segment provides industry standard servers for multi-workload computing; mission-critical servers; converged storage solutions, including all-flash arrays and hybrid storage solutions; and traditional storage solutions comprising tape, storage networking, and disk products, such as HPE MSA and HPE XP. It also offers data center networking products, such as top-of-rack switches, core switches, and open networking switches; and operational services, advisory and professional services, and communications and media solutions. The Intelligent Edge segment provides solutions for mobility and Internet of things, as well as enterprise networking and security solutions for businesses campus and branch environments under the Aruba brand. This segment also offers wired and wireless local area network products, such as Wi-Fi access points, switches, routers; and software products, including network management, network access control, analytics and assurance, and location services software. The Financial Services segment offers various flexible investment solutions, which comprise leasing, financing, IT consumption, and utility programs and asset management services for customers to enable the creation of unique technology deployment models and acquire complete IT solutions. The Corporate Investments segment is involved in Hewlett Packard labs and various business incubation activities. The company serves small and medium-sized businesses and large enterprises. It has strategic alliance with ABB Ltd. Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Palo Alto, California.

Details
Name: Hewlett Packard Enterprise Company
HPE
Exchange: NYSE
Founded: 1939
$19,698,876,259
1,339,148,624
Website: http://www.hpe.com
Address: Hewlett Packard Enterprise Company
3000 Hanover Street,
Palo Alto,
California, 94304,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HPE Common Stock New York Stock Exchange US USD 19. Oct 2015
DB 2HP Common Stock Deutsche Boerse AG DE EUR 19. Oct 2015
LSE 0J51 Common Stock London Stock Exchange GB USD 19. Oct 2015
WBAG HPE Common Stock Wiener Boerse AG AT EUR 19. Oct 2015
BMV HPE * Common Stock Bolsa Mexicana de Valores MX MXN 19. Oct 2015
Number of employees
Current staff
Staff numbers
60,000
Hewlett Packard Enterprise employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/20 01:06
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/19
Last earnings filing: 2019/05/31
Last earnings reported: 2019/04/30
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.