NYSE:HPE

Stock Analysis Report

Hewlett Packard Enterprise

Executive Summary

Hewlett Packard Enterprise Company operates as a technology company.

Snowflake

Fundamentals

Slightly overvalued unattractive dividend payer.


Similar Companies

Share Price & News

How has Hewlett Packard Enterprise's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

HPE

3.7%

US Tech

0.6%

US Market


1 Year Return

-6.9%

HPE

5.6%

US Tech

6.2%

US Market

Return vs Industry: HPE underperformed the US Tech industry which returned 5.6% over the past year.

Return vs Market: HPE underperformed the US Market which returned 6.2% over the past year.


Share holder returns

HPEIndustryMarket
7 Day-0.3%3.7%0.6%
30 Day-6.6%4.7%-1.8%
90 Day-3.8%14.4%-2.0%
1 Year-4.1%-6.9%7.3%5.6%8.6%6.2%
3 Year22.6%-33.3%99.9%84.5%45.7%36.3%
5 Yearn/a136.2%112.1%68.5%50.0%

Price Volatility Vs. Market

How volatile is Hewlett Packard Enterprise's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HPE ($14.35) is trading below our estimate of fair value ($19.22)

Significantly Undervalued: HPE is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: HPE is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: HPE is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate HPE's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: HPE is good value based on its PB Ratio (1.1x) compared to the US Tech industry average (1.6x).


Next Steps

Future Growth

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

39.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HPE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HPE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HPE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HPE's revenue (0.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HPE's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: HPE's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

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

-14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HPE is unprofitable, and losses have increased over the past 5 years at a rate of -14.2% per year.

Accelerating Growth: Unable to compare HPE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HPE is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (64%).


Return on Equity

High ROE: HPE has a negative Return on Equity (-1.15%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HPE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HPE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hewlett Packard Enterprise's financial position?


Financial Position Analysis

Short Term Liabilities: HPE's short term assets ($15.1B) do not cover its short term liabilities ($17.2B)

Long Term Liabilities: HPE's short term assets ($15.1B) do not cover its long term liabilities ($16.0B)


Debt to Equity History and Analysis

Debt Level: HPE's debt to equity ratio (72.2%) is considered high

Reducing Debt: HPE's debt to equity ratio has increased from 3.9% to 72.2% over the past 5 years.

Debt Coverage: HPE's debt is well covered by operating cash flow (30.7%).

Interest Coverage: HPE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: HPE has a low level of unsold assets or inventory.

Debt Coverage by Assets: HPE's debt is covered by short term assets (assets are 1.191060x debt).


Next Steps

Dividend

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

3.32%

Expected Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Years3.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HPE's dividend (3.14%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HPE's dividend (3.14%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 4 years.


Current Payout to Shareholders

Dividend Coverage: HPE is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HPE's dividends in 3 years are forecast to be well covered by earnings (24.4% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Antonio Neri (52yo)

1.7yrs

Tenure

US$12,623,005

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Antonio's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.9yrs

Average Tenure

54yo

Average Age

Experienced Management: HPE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HPE's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Rishi Varma (46yo)

    Senior VP

    • Tenure: 0yrs
  • Phil Davis (51yo)

    Chief Sales Officer & President of Hybrid IT Business Group

    • Tenure: 1.9yrs
    • Compensation: US$6.04m
  • John Schultz (55yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$6.46m
  • Tarek Robbiati (54yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$4.32m
  • Antonio Neri (52yo)

    CEO, President & Director

    • Tenure: 1.7yrs
    • Compensation: US$12.62m
  • Ric Lewis

    Senior VP and GM of Software Defined & Cloud Group

    • Tenure: 6.9yrs
  • Alan May (61yo)

    Executive VP & Chief People Officer

    • Tenure: 4.3yrs
    • Compensation: US$5.46m
  • Jeff Ricci (58yo)

    Senior VP

    • Tenure: 3.9yrs
  • Andrew Simanek

    Head of Investor Relations & Director

    • Tenure: 0yrs
  • Glenn Leon

    Chief Ethics & Compliance Officer

    • Tenure: 0yrs

Board Members

  • Mike Angelakis (54yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$334.01k
  • Gary Reiner (64yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$333.98k
  • Ann Livermore (60yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$319.01k
  • Pat Russo (67yo)

    Non Executive Chairman

    • Tenure: 3.9yrs
    • Compensation: US$520.98k
  • Maggie Wilderotter (64yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$344.01k
  • Pam Carter (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$325.04k
  • Ray Ozzie (63yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$334.01k
  • Ray Lane (72yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$314.98k
  • Dan Ammann (47yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$317.01k
  • Antonio Neri (52yo)

    CEO, President & Director

    • Tenure: 1.7yrs
    • Compensation: US$12.62m

Company Information

Hewlett Packard Enterprise Company's company bio, 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$18.735b
  • Shares outstanding: 1.31b
  • Website: https://www.hpe.com

Number of Employees


Location

  • Hewlett Packard Enterprise Company
  • 6280 America Center Drive
  • San Jose
  • California
  • 95002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2HPDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2015
HPENYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2015
HPE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2015
0J51LSE (London Stock Exchange)YesCommon StockGBUSDOct 2015
HPEWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2015

Biography

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 se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 01:19
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.

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