|HPE Overview
HPE

Hewlett Packard Enterprise Co

Technology • CIK: 0001645590

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Market Cap
$32.33B
P/E (TTM)
-610.5x
Rev Growth (TTM)
+13.8%
Net Margin (TTM)
-0.2%
FCF Yield (TTM)
1.9%
FCF Margin (TTM)
1.8%

LATEST EARNINGS

Q4 FY2025
3 months ago
View source
Revenue
$9.68B
+14.4%
Net Income
$146.00M
-89.1%
EPS
$0.11
-88.9%
Gross
33.5% +2.7%
Operating
-0.1% -8.3%
Net
1.5% -14.4%
  • Revenue increased 14% to $9.7 billion in actual dollars and constant currency.
  • Non-GAAP gross margin expanded significantly by 550 basis points year-over-year to 36.4%.
  • Non-GAAP diluted EPS of $0.62 exceeded outlook, up $0.04 from the prior year.
  • Free cash flow increased by $420 million to $1.9 billion.

Cash Flow Health

Free Cash Flow5/8 positive
TTM$627M
Q4 '25
$1.8B+150%
Q3 '25
$729M+172%
FCF Margin
TTM1.8%
Q4 '2518.8%+136%
Sector: 14.5%Below Avg
OCF Margin8.5%
OCF/NI-49.47x
CapEx Coverage1.3x
FCF Yield1.9%
FCF Growth (2Y)-25%
Cash Conversion Cycle
46 days
DSO: 46+DIO: DPO:

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.8%
Div Yield2.1%
+
Buyback (TTM)0.6%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.1%
FCF Payout Ratio109.8%
Free Cash Flow (TTM)$627.0M
Stock Repurchases (TTM)$202.0M
Capital Return / FCF159.2%
Est. Dividends Paid (TTM)$688.5M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
0.3%
Moderate
-1.0% YoY-7.4%
P25MedianP75
72th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
0.3%
8Q: 4.4%
Asset Turnover
0.47x
8Q: 0.50x
Leverage (1+D/E)
1.91x
D/E: 0.91x
DuPont: 0.2%0.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.02x
8Q:5.66x
+188.0%
Invested Cap Turn
1.00x
8Q:1.01x
Flat
CapEx Intensity
6.7%
8Q:7.4%
CapEx/Depreciation
0.84x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$34.3B
$9.7B5.9%
$9.1B19.8%
$7.6B2.9%
$7.9B7.1%
$8.5B9.7%
$7.7B7.0%
$7.2B6.6%
$6.8B
Operating Income
$-437.0M
$-8.0M103.2%
$247.0M122.3%
$-1.1B356.1%
$433.0M37.5%
$693.0M26.7%
$547.0M28.7%
$425.0M19.0%
$525.0M
Net Income
$-59.0M
$146.0M47.1%
$276.0M125.6%
$-1.1B280.4%
$598.0M55.4%
$1.3B161.9%
$512.0M63.1%
$314.0M18.9%
$387.0M
Operating Cash Flow
$2.9B
$2.5B88.9%
$1.3B383.1%
$-461.0M18.2%
$-390.0M119.2%
$2.0B75.9%
$1.2B5.6%
$1.1B1607.8%
$64.0M
Free Cash Flow
$627.0M
$1.8B150.2%
$729.0M172.3%
$-1.0B9.8%
$-918.0M164.6%
$1.4B132.7%
$611.0M14.6%
$533.0M190.0%
$-592.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
-610.5x
Valuation Lenses
Earnings
-610.5x
vs sector
Cash Flow
57.3x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
P/E per %ROIC
ROIC: 0.3%
Shareholder Returns
Dividend
2.1%
Buyback
0.6%
Total Yield
2.8%
Market Cap$32.33B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
19/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
-0.2%
8Q:
Return on Invested Capital (ROIC)Above Avg
0.3%
8Q:
-7.4%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 0.3%
Asset Turnover: 0.47x

Earnings Quality

Cash Conversion

-49.47x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin100.0%

Capital Efficiency

Invested Capital Turnover1.00x

Working Capital

Cash Conversion Cycle46 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
54/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
13.8%
OpInc Growth YoY
-101.2%
EPS Growth YoY
N/A
FCF 3Y CAGR
-24.7%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 38.6%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
100.0%
Operating
-1.3%
Below Avg in sector
Net
-0.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+2.0 pts
FCF: 1.8% | Net: -0.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $16.51B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.91x
Balance sheet risk & solvency analysis