NYSE:HPE

Stock Analysis Report

Hewlett Packard Enterprise

Executive Summary

Hewlett Packard Enterprise Company operates as a technology company.

Snowflake

Fundamentals

Slightly overvalued with limited growth.


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

3.5%

NYSE:HPE

5.1%

US Tech

2.1%

US Market


1 Year Return

-18.2%

NYSE:HPE

-3.0%

US Tech

-0.04%

US Market

HPE underperformed the Tech industry which returned -2.8% over the past year.

HPE underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

HPEIndustryMarket
7 Day3.5%5.1%2.1%
30 Day-10.1%0.9%-3.2%
90 Day-7.9%16.8%2.8%
1 Year-15.7%-18.2%-1.4%-3.0%2.2%-0.04%
3 Year11.4%-39.2%95.8%80.2%41.5%32.3%
5 Yearn/a101.4%80.9%55.0%37.8%

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?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Hewlett Packard Enterprise is poor value based on expected growth next year.


Price Based on Value of Assets

Hewlett Packard Enterprise is good value based on assets compared to the US Tech industry average.


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?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hewlett Packard Enterprise's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).

Hewlett Packard Enterprise's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).

Hewlett Packard Enterprise's revenue growth is positive but not above the United States of America market average.

Hewlett Packard Enterprise's earnings growth is expected to exceed the United States of America market average.

Hewlett Packard Enterprise's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Hewlett Packard Enterprise is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-8.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Hewlett Packard Enterprise has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hewlett Packard Enterprise used its assets less efficiently than the US Tech industry average last year based on Return on Assets.


Return on Capital Employed

Hewlett Packard Enterprise has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hewlett Packard Enterprise's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

3.64%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Hewlett Packard Enterprise before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Hewlett Packard Enterprise's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Hewlett Packard Enterprise's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

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).


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?

1.7yrs

Average management tenure


CEO

Antonio Neri (52yo)

1.5yrs

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

Antonio's remuneration is about average for companies of similar size in United States of America.

Antonio's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.7yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Hewlett Packard Enterprise management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the Hewlett Packard Enterprise board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Meg Whitman (63yo)

    Executive Director

    • Tenure: 0.0yrs
    • Compensation: US$1.06m
  • Rishi Varma (46yo)

    Senior VP

    • Tenure: 0.0yrs
  • Phil Davis (51yo)

    Chief Sales Officer & President of Hybrid IT Business Group

    • Tenure: 1.8yrs
    • Compensation: US$6.04m
  • John Schultz (55yo)

    Executive VP

    • Tenure: 1.7yrs
    • Compensation: US$6.46m
  • Tarek Robbiati (54yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$4.32m
  • Antonio Neri (52yo)

    CEO, President & Director

    • Tenure: 1.5yrs
    • Compensation: US$12.62m
  • Alan May (61yo)

    Executive VP & Chief People Officer

    • Tenure: 4.2yrs
    • Compensation: US$5.46m
  • Jeff Ricci (58yo)

    Senior VP

    • Tenure: 3.8yrs
  • Andrew Simanek

    Head of Investor Relations & Director

    • Tenure: 0.0yrs
  • Glenn Leon

    Chief Ethics & Compliance Officer

    • Tenure: 0.0yrs

Board Members

  • Mike Angelakis (54yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$334.01k
  • Gary Reiner (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$333.98k
  • Ann Livermore (60yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$319.01k
  • Pat Russo (67yo)

    Non Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: US$520.98k
  • Maggie Wilderotter (64yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$344.01k
  • Pam Carter (69yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$325.04k
  • Ray Ozzie (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$334.01k
  • Ray Lane (72yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$314.98k
  • Dan Ammann (47yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$317.01k
  • Antonio Neri (52yo)

    CEO, President & Director

    • Tenure: 1.5yrs
    • 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$17.744b
  • Shares outstanding: 1.34b
  • 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 Analysis2019/08/23 00:32
End of Day Share Price2019/08/22 00:00
Earnings2019/04/30
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.