NYSE
HPE
Last Price
US $59.82
KEY FIGURES
MKT CAP
$79.2B
EPS
TTM
$1.14
EPS Growth (1Y)
-102.31%
PEG
TTM
-
P/E
TTM
52.61x
P/S
TTM
2.05x
YIELD
0.93%
GROWTH (5Y CAGR)
Profit margin
Current Ratio
Capital Returns
6.12%
Return on equity
ROIC: 4.62%
Valuation History
54.9X
Price to Earnings
EV/EBITDA: 23.7X
Cash flow
Profit margin
Revenue
4.94%
EBITDA
1.50%
Cash flow
-
Cash Flow (DCF)
Fair Value
Market $59.82
—
Default assumptions
EBITDA Multiple
Fair Value
Market $59.82
-97.73%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Cash flow to debt coverage
Hewlett Packard Enterprise Company cash flow to debt ratio of 12.12% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Free cash flow growth
Hewlett Packard Enterprise Company's free cash flow has decreased 68.24% from $1.97B last year to $627.00M, signaling decreasing performance
Debt-to-equity ratio
Hewlett Packard Enterprise Company's debt to equity ratio is 0.84, which means that the company's assets are unhealthy financed, signaling financial risk.
Debt-to-equity trend
Hewlett Packard Enterprise Company's debt has increased relative to shareholder equity from 0.80 last year to 0.84 today, signaling weakened financials
Net debt to EBITDA
Hewlett Packard Enterprise Company has a net debt to EBITDA ratio of 6.97x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Interest coverage
Hewlett Packard Enterprise Company's interest coverage ratio of 21.37 indicates that earnings with good margin can cover interest payments on company debt
Profit margin growth
Hewlett Packard Enterprise Company's profit margin has decreased (54.48%) in the last year from 8.58% to 3.90%, signaling decreasing performance
Current ratio
Hewlett Packard Enterprise Company's short-term assets of $24.99B exceed its short-term liabilities of $24.64B
Return on assets
Hewlett Packard Enterprise Company's return on assets of 1.91% is lower than the 5.00% threshold, indicating inefficient asset utilization
Return on equity
Hewlett Packard Enterprise Company's return on equity of 6.12%, is lower than 15.00%, indicating bad performance
Earnings quality
Hewlett Packard Enterprise Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Earnings stability
Hewlett Packard Enterprise Company had positive net income in 5 out of 5 years, indicating stable and consistent earnings
Positive free cash flow
Hewlett Packard Enterprise Company has positive free cash flow, indicating the company generates cash after capital expenditures
Free cash flow yield
Hewlett Packard Enterprise Company has a free cash flow yield of 0.87%, which is below the 2.00% threshold, indicating limited cash return relative to market value
Earnings growth
Hewlett Packard Enterprise Company's yearly earnings has decreased 97.79% since last year from $2.58B to $57.00M, signaling decreasing performance
Revenue growth
Hewlett Packard Enterprise Company's yearly revenue has increased 13.84% since last year from $30.13B to $34.30B, signaling increasing performance
Return on invested capital
ROIC 4.62% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
3-year revenue CAGR
Hewlett Packard Enterprise Company's 3-year revenue CAGR of 6.86% is positive, indicating growing revenue over the past 3 years
Revenue consistency
Hewlett Packard Enterprise Company had revenue growth in 5 out of 5 years, indicating consistent revenue performance
Return on equity consistency
Hewlett Packard Enterprise Company had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity
Cash Flow Valuation (DCF)
Hewlett Packard Enterprise Company has insufficient data to evaluate this check.
Earnings yield (TTM)
Hewlett Packard Enterprise Company has an earnings yield of 2.08%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
EBITDA Valuation
Hewlett Packard Enterprise Company is overvalued relative to its fair value price of 1.36 based on EBITDA multiple model
EV/EBITDA (FY)
Hewlett Packard Enterprise Company has an EV/EBITDA ratio of 34.53x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
PEG ratio (TTM/FY)
Hewlett Packard Enterprise Company had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.
Price-to-book ratio (FY)
Hewlett Packard Enterprise Company has a price-to-book ratio of 2.89x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Price-to-sales ratio (TTM)
Hewlett Packard Enterprise Company has a price-to-sales ratio of 1.88x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue