Hewlett Packard Enterprise Company (HPE)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earnings, high returns on capital, and a price that leaves room for error. HPE is a large hardware and hybrid-cloud vendor with global scale. The recent numbers are eye-catching: in fiscal Q3 2026, the quarter ended 2026-07-31, revenue was $12.2B, net income $1.5B, and diluted EPS $1.06. In fiscal Q3 2025, the quarter ended 2025-07-31, revenue was $9.1B, net income $305.0M, and diluted EPS $0.21. That is a sharp rebound. But the annual record is uneven. In FY2025, the year ended 2025-10-31, revenue was $34.3B, yet net income was only $57.0M and diluted EPS was -$0.04. In FY2024, net income was $2.6B and diluted EPS $1.93. FairStock’s Lynch category calls it a slow grower, with profit shrinking 64.1% a year over four years. That inconsistency matters. Returns on capital are modest: FairStock shows ROE 10.94% and ROCE 2.64%. Debt-to-equity is 0.76, and Altman Z-score is 1.20, not a fortress balance sheet. Free cash flow is $4.2B, a 4.5% yield, and Piotroski is 8/9, so recent operations have improved. But valuation is demanding. At the 2026-10-13 close of $68.81, FairStock calculates P/E 35.47, P/B 3.45, EV/EBITDA 15.56, and Graham Number $29.52, implying a negative margin of safety of -133.10%. The market is paying for a durable turnaround. I would want more years of stable profit and better returns on capital before calling it a bargain.

In plain English: Hewlett Packard Enterprise sells servers, networking equipment, and hybrid cloud services to businesses around the world. The latest quarter was much stronger than the same quarter last year, but profits have been uneven over recent years and the company carries a fair amount of debt. At the recent share price, the stock looks expensive compared with the company's profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-31) · fiscal Q2 2026 10-Q (period ended 2026-04-30) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-07-31) · FY2025 10-K (period ended 2025-10-31) · FY2024 10-K (period ended 2024-10-31) · FY2023 10-K (period ended 2023-10-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer