Hewlett Packard Enterprise (HPE) AI Stock Analysis

• Market Cap: $27.20B
• Dividend Yield: 2.51%
• Average Volume (3M): 18.79M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.60
• Revenue Growth: 11.63%
• EPS Growth: -24.41%
• Country: US
• Employees: 61,000
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): 0.38
• Shares Outstanding: 1,312,215,600
• 10 Day Avg. Volume: 13,893,015
• 30 Day Avg. Volume: 18,790,366
• PEG Ratio: -0.38
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.01
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: 1.10
• 1Y Price Target: $24.38
• Price Target Upside: 17.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $23.00 ▲(10.95%Upside)

Hewlett Packard Enterprise scores a solid 74, driven by strong financial performance and positive earnings call results. Technical indicators support an upward trend, although valuation suggests a potential overvaluation. Corporate events enhance strategic opportunities, but challenges in the server segment and cash flow management remain.

Positive Factors

Acquisition Benefits

The acquisition of Juniper enhances Hewlett Packard Enterprise's position, establishing it as one of the largest Networking companies with a broad portfolio.

Cost Synergies

Hewlett-Packard Enterprise expects at least $600M in cost synergies over the next 3 years, which will be accretive to non-GAAP EPS in the first full year and accretive to FCF in year 2 and 3.

Revenue Synergies

Revenue synergies could yield additional Target Price upside as Juniper products are integrated into HPE’s global sales channels.

Negative Factors

Execution Risks

Execution risks are likely to be top of mind for investors, with concerns about execution, cash restructuring charges, and management changes post-acquisition.

Investor Concerns

Concerns about execution remain a watchpoint, likely leading investors to gradually warm up to the higher earnings multiple.

Hewlett Packard Enterprise Business Overview & Revenue Model

Company Description

Hewlett Packard Enterprise (HPE) is a global technology company that provides cutting-edge solutions in the enterprise IT sector. Known for its focus on innovation and digital transformation, HPE offers a wide range of products and services, including servers, storage systems, networking equipment, and software solutions. The company also provides consulting and support services, enabling organizations to optimize their IT environments and accelerate their digital transformation journeys. HPE operates across various sectors, including telecommunications, finance, healthcare, and government, helping businesses leverage technology to achieve their strategic objectives.

How the Company Makes Money

Hewlett Packard Enterprise makes money through a diversified revenue model that includes the sale of hardware, software, and services. A significant portion of its revenue comes from its Hybrid IT segment, which includes servers, storage, and data center networking solutions. HPE also generates income through its Intelligent Edge segment, offering edge computing and IoT solutions, and its Financial Services segment, which provides leasing and financial management services. Additionally, HPE capitalizes on strategic partnerships with other technology firms and service providers, enhancing its product offerings and expanding its market reach. The company also offers subscription-based services and cloud solutions, creating recurring revenue streams that contribute to its financial performance.

Hewlett Packard Enterprise Financial Statement Overview

Summary

Hewlett Packard Enterprise demonstrates solid financial performance with consistent revenue growth and profitability. The income statement shows healthy profit margins and operational efficiency. The balance sheet reflects a stable financial position, though there is room for improvement in asset financing. Strong cash flow generation supports operational needs, but there is potential to enhance cash conversion efficiency.

Income Statement

Hewlett Packard Enterprise shows a steady revenue growth with a 3.58% increase in TTM compared to the previous year. The Gross Profit Margin stands at 48.65%, indicating effective cost management. The Net Profit Margin of 8.86% is healthy, reflecting strong profitability. EBIT and EBITDA margins of 6.90% and 13.59% respectively, reveal solid operational efficiency. However, the slight decline in EBIT margin from 7.27% in the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a moderate Debt-to-Equity Ratio of 0.71, showing a balanced leverage. The Return on Equity (ROE) is robust at 10.96%, demonstrating effective use of shareholders' equity to generate profits. The Equity Ratio of 35.86% indicates a stable financial structure, though slightly lower compared to industry peers, suggesting room for improvement in asset financing.

Cash Flow

Hewlett Packard Enterprise's Free Cash Flow grew by 10.24% in the TTM, highlighting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 1.41 reflects efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio of 0.79 indicates a healthy cash flow relative to profits, though there is room to enhance cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.13B	29.14B	28.50B	27.78B	26.98B
Gross Profit	9.84B	10.24B	9.51B	9.38B	8.47B
EBITDA	5.02B	5.06B	4.78B	4.85B	4.26B
Net Income	2.58B	2.02B	868.00M	3.43B	-322.00M
Balance Sheet
Total Assets	71.26B	57.15B	57.12B	57.70B	54.02B
Cash, Cash Equivalents and Short-Term Investments	14.85B	4.27B	4.16B	4.00B	4.23B
Total Debt	18.25B	13.52B	12.46B	13.45B	15.94B
Total Liabilities	46.38B	35.91B	37.21B	37.68B	37.92B
Stockholders Equity	24.82B	21.18B	19.86B	19.97B	16.05B
Cash Flow
Free Cash Flow	1.97B	1.60B	1.47B	3.37B	-143.00M
Operating Cash Flow	4.34B	4.43B	4.59B	5.87B	2.24B
Investing Cash Flow	-53.00M	-3.28B	-2.09B	-2.80B	-2.58B
Financing Cash Flow	6.28B	-1.36B	-1.80B	-3.36B	883.00M

Hewlett Packard Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPE, the sentiment is Positive. The current price of 20.73 is above the 20-day moving average (MA) of 20.64, above the 50-day MA of 18.90, and above the 200-day MA of 19.14, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPE.

Hewlett Packard Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	78 Outperform	$272.01B	28.15	21.36%	2.36%	0.47%	-17.77%
UI	74 Outperform	$27.01B	49.21	237.68%	0.54%	21.43%	56.87%
HPE	74 Outperform	$27.20B	21.42	6.39%	2.51%	11.63%	-24.41%
ERIC	64 Neutral	$25.19B	14.94	19.63%	0.04%	0.98%	―
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
NOK	57 Neutral	$23.43B	22.23	4.31%	0.65%	-2.39%	157.33%

Hewlett Packard Enterprise Corporate Events

Hewlett Packard Enterprise Partners with Elliott Management

On July 16, 2025, Hewlett Packard Enterprise announced a cooperation agreement with Elliott Investment Management, which includes the appointment of Robert Calderoni to the board of directors and the formation of a new Strategy Committee to drive shareholder value. This strategic move is part of HPE’s ongoing transformation efforts and aims to enhance the company’s operational and strategic opportunities, particularly following the recent acquisition of Juniper Networks.

The most recent analyst rating on (HPE) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Hewlett Packard Enterprise stock, see the HPE Stock Forecast page.

Hewlett Packard Enterprise Completes Merger with Juniper

On July 2, 2025, Hewlett Packard Enterprise announced the completion of its merger with Juniper, making Juniper a wholly owned subsidiary. The merger, valued at approximately $13.4 billion, was funded through a combination of cash, commercial paper issuances, and term loan credit facilities. The merger faced legal challenges when the U.S. Department of Justice sought to block it, but a settlement was reached requiring HPE to divest its Instant On business and conduct an auction for non-exclusive licensing of Juniper’s Mist AIOps source code.

The most recent analyst rating on (HPE) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Hewlett Packard Enterprise stock, see the HPE Stock Forecast page.

Hewlett Packard Enterprise Reports Q2 Revenue Growth

Hewlett Packard Enterprise announced its financial results for the second quarter of fiscal year 2025, reporting a 6% increase in revenue to $7.6 billion compared to the previous year. Despite a solid performance in revenue growth across its product segments, the company faced challenges with a GAAP net loss per share of $(0.82) due to a non-cash impairment of legacy goodwill. HPE continues to focus on innovation and operational efficiency to enhance shareholder value, with an estimated revenue growth of 7% to 9% for fiscal 2025.

The most recent analyst rating on (HPE) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Hewlett Packard Enterprise stock, see the HPE Stock Forecast page.

Hewlett Packard Enterprise Declares Dividend for Preferred Stock

On April 30, 2025, Hewlett Packard Enterprise‘s Board of Directors approved a cash dividend of $0.953125 per share for its Series C Mandatory Convertible Preferred Stock, payable on June 1, 2025. This decision reflects the company’s financial strategy and commitment to returning value to shareholders, with implications for investor confidence and market positioning.