One-glance verdict
Overvalued
$12.71 our estimate vs market $68.78
Wall Street consensus: $71.13 (459.7% higher than our fair-value estimate)
441% above our estimate, beyond the bull case
Fundamentals snapshot
Hewlett Packard Enterprise Company
HPE · NYQ · Technology · Communication Equipment
Current price
$68.78
52-week range
$19.84 - $68.94
Market cap
$91.31B
Balance sheet
Watch
14.05x Strong cushion
Net debt $14.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 22.1% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Stock trades 155.0% above its 5-year average P/E.
- Risk Net debt grew 96.4% over 3 years.
What this company does
Hewlett Packard Enterprise Company
Hewlett Packard Enterprise (HPE) provides the powerful computers (servers), data storage, and networking equipment that form the backbone for large companies and government agencies. A growing part of their business involves bundling this hardware with software and services into a subscription model called GreenLake, which gives them more predictable recurring revenue (income that's expected to continue regularly). This shift from one-time sales to ongoing subscriptions is a key part of their strategy for stable growth.
How the company got here
Hewlett Packard Enterprise (HPE) was born in 2015 when the original Hewlett-Packard Company, a technology giant founded in a garage in 1939, split into two separate entities. This separation was designed to make each new company more focused and agile in its respective markets. HPE took over the part of the business that sells technology infrastructure like servers and networking equipment to other businesses, while the other company, HP Inc., kept the personal computer and printer business. Since the split, HPE has further focused its business by selling off some of its enterprise services and software divisions.
What it actually does
HPE provides the powerful computers, data storage systems, and networking gear that businesses, governments, and other large organizations use to run their operations. Think of it as providing the heavy-duty technology that powers everything from your bank's mobile app to the complex calculations needed for scientific research. Instead of selling laptops to individuals, HPE sells the foundational technology that helps other companies build and manage their digital services. They offer everything from the physical machines (hardware) to the programs that run on them (software) and the services to help set it all up and keep it running smoothly.
Server
This is HPE's core and largest business, representing a significant portion of its sales. It sells powerful computers called servers, which are designed for businesses to run applications, store large amounts of data, and perform complex calculations for things like artificial intelligence (AI). Customers range from large corporations to government agencies who need reliable and high-performing computing power. This segment includes everything from general-purpose servers to highly specialized systems for supercomputing.
Hybrid Cloud
This segment helps businesses manage their data and applications across their own data centers and the public cloud (services run by other companies, like Amazon Web Services or Microsoft Azure). HPE provides storage systems and software that allow companies to have a mix of both, which is known as a hybrid cloud. A key offering here is HPE GreenLake, which allows customers to pay for their technology as they use it, similar to a utility bill, rather than buying all the equipment upfront. This provides more flexibility and can be more cost-effective for businesses.
Networking
This fast-growing and profitable part of the company provides the equipment and software that connects computers and devices together within a business. Through its Aruba Networks brand, HPE sells things like Wi-Fi access points, switches, and routers that create secure and reliable networks for offices, campuses, and data centers. This allows employees and customers to access the company's applications and data seamlessly. This segment has become a major focus for HPE's growth.
Financial Services
This division helps customers acquire the technology they need by offering financing and leasing options. Instead of paying the full price for new servers or storage equipment at once, a business can pay for it over time, much like a car loan. This makes it easier for companies to invest in new technology and manage their budgets. This segment supports the sales of HPE's other products and services.
What management is betting on now
HPE's leadership is heavily focused on the growing demand for artificial intelligence (AI) and is positioning the company to be a key provider of the powerful computing systems needed to run AI applications. They are also betting on the continued growth of hybrid cloud, offering services through their GreenLake platform that give customers a cloud-like experience with their own equipment. Another major priority is expanding their networking business, aiming to provide the essential connectivity for modern, data-heavy applications. The company is also focused on increasing its recurring revenue (ongoing payments for services and subscriptions) to create a more predictable and stable business.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$1.42B
FY2025 Q1
$-918.00M
FY2025 Q2
$-1.01B
FY2025 Q3
$729.00M
FY2025 Q4
$1.82B
FY2026 Q1
$609.00M
FY2026 Q2
$827.00M
FY2026 Q3
$896.00M
Revenue
$12.21B
Net income
$1.54B
Diluted EPS
1.06
Operating cash flow
$1.64B
Free cash flow
$896.00M
Fetching…
Sources
Revenue
$10.68B
Net income
$624.00M
Diluted EPS
0.44
Operating cash flow
$1.41B
Free cash flow
$827.00M
Fetching…
Sources
Revenue
$9.30B
Net income
$452.00M
Diluted EPS
0.31
Operating cash flow
$1.18B
Free cash flow
$609.00M
Fetching…
Sources
Revenue
$9.68B
Net income
$175.00M
Diluted EPS
0.13
Operating cash flow
$2.46B
Free cash flow
$1.82B
Fetching…
Sources
Revenue
$9.14B
Net income
$305.00M
Diluted EPS
0.21
Operating cash flow
$1.30B
Free cash flow
$729.00M
Fetching…
Sources
Revenue
$7.63B
Net income
$-1.05B
Diluted EPS
-0.82
Operating cash flow
$-461.00M
Free cash flow
$-1.01B
Fetching…
Sources
Revenue
$7.85B
Net income
$627.00M
Diluted EPS
0.44
Operating cash flow
$-390.00M
Free cash flow
$-918.00M
Fetching…
Sources
Revenue
$8.46B
Net income
$1.37B
Diluted EPS
1.02
Operating cash flow
$2.03B
Free cash flow
$1.42B
Fetching…
Sources
Is it cheap or expensive?
Fair value $12.71 vs current price $68.78
Wall Street consensus is the average analyst price target: $71.13 (459.7% higher than our fair-value estimate).
Our most-likely fair value is $12.71 a share — about 81.5% below today's price of $68.78, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $14.1B. Interest coverage 14.1x.
Net debt
$14.10B
Interest coverage
14.05x
Hewlett Packard Enterprise Company's profit covers its interest bill about 14.1 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HPE
BASELINE
Hewlett Packard Enterprise Company
Total debt $20.32B Interest coverage 14.05x This is the baseline the peer rows are being compared against.
Total debt $35.28B Interest coverage 5.41x -61% vs HPE Carries about 2.6x less debt cushion than HPE.
Total debt $31.19B Interest coverage 10.93x -22% vs HPE Carries about 1.3x less debt cushion than HPE.
Total debt $65.27B Interest coverage 6.46x -54% vs HPE Carries about 2.2x less debt cushion than HPE.
Total debt $2.53B Interest coverage 15.55x +11% vs HPE Has roughly the same debt cushion as HPE.
Total debt $9.26B Interest coverage 14.24x +1% vs HPE Has roughly the same debt cushion as HPE.
What you should know
The case for and against HPE
3 Rewards
3 Risks
Rewards
-
Revenue grew 22.1% last year.
-
Free cash flow was positive in 8/10 years.
-
Dividend yield is 0.9% with 12-year payout history.
Risks
-
Stock trades 155.0% above its 5-year average P/E.
-
Net debt grew 96.4% over 3 years.
-
Insider ownership is only 0.4% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.46x
Forward P/E
14.64x
P/B
3.45x
P/S
2.18x
EV/EBITDA
14.50x
PEG ratio
0.51x
Profitability
How much profit each dollar creates
Gross margin
36.6%
Operating margin
12.6%
Net margin
6.7%
ROE
10.9%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.76x
Current ratio
1.11x
Quick ratio
0.53x
Total debt
$20.32B
Total cash
$6.22B
Growth
How the business has been compounding
Revenue TTM
$41.87B
Revenue 5Y CAGR
5.4%
EPS TTM
1.94
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$6.69B
Free CF TTM
$627.00M
FCF margin
1.5%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
28.7%
Last ex-div date
2026-09-17