Hewlett Packard Enterprise Co

HPE

Country: United StatesPrice: $61.49Market Cap: $81.6B

Investment snapshot

13%positive consensus

Scored 37d ago

Positive

BUY / PASS

Neutral / negative

1 / 12

NEUTRAL / FAIL

Median fair value

$7.58

-87.7% vs price

Models with upside

0 / 16

Positive margin of safety

Key risk

No clean pass — all 12 investors flag at least one valuation criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Scored from 10-K37d ago

Metric	O'Shaughnessy Systematic Factor Composite	Lynch GARP	Buffett Quality Compounder	Pabrai Dhandho Framework	Akre Three-Legged Stool	Schloss Asset-Value Discipline	Neff Low-P/E Total Return	Sleep Scale Economies Shared	Templeton Global Bargain Hunter	Marks Risk-Aware Value	Munger Quality Focus	Ackman Activist Value	Dreman Contrarian Value	Piotroski F-Score	Greenblatt Magic Formula	Graham Defensive Value
Verdict	FAIL	FAIL	FAIL	FAIL	FAIL	NEUTRAL	FAIL	FAIL	FAIL	FAIL	FAIL	PASS	FAIL	PASS	FAIL · Rank #2056 (Top 64.1%)	FAIL
Score
Analysis
Intrinsic Value	N/A	N/A				N/A	N/A	N/A						N/A		N/A
Margin of Safety	N/A	N/A	-1266.4%	-21103.4%	-229.0%	N/A	N/A	N/A	-207.3%	-292.4%	-1064.6%	-763.6%	-258.5%	N/A	-711.2%	N/A
Data As Of	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-24)	10-K (2026-08-24)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)

Where It Passes

Where It Falls Short

Valuation0% pass✓ 2✗ 24▾
No clean pass — all 12 investors flag at least one valuation criterion
Revenue / market capitalization+0.4202; #2712/5203 (top 52.1%)
✗OshaughnessyTop 10% of eligible cross-section
Net income / market capitalization+0.07%; #3054/6251 (top 48.9%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+0.77%; #2416/4487 (top 53.8%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+158.25%; #201/6203 (top 3.2%)
✓OshaughnessyTop 10% of eligible cross-section
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
P/E or FCF YieldFCF Yield=0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
Price / Book Value per Share3.32x
✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change+49.1%
✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Price / Diluted EPS
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / EPS
✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
Price vs. Trailing Low399% of trailing low ($15.43)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
P/B or P/E vs. Historical AverageP/B=3.3x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-258.5% (IV=$17.15 vs Price=$61.49)
✗Marks>= 20% below intrinsic value
Valuation ReasonablenessOE Yield=0.6%
✗MungerP/E < 25 or Owner Earnings Yield > 5%
Price / FCF per Share130.9x
✗Ackman<= 25
Price / (CFO / Shares)28.1x
✗Dreman< 8x
EBIT / Enterprise Value-0.4%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-0.4%, ROC=-36.5%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / 3-yr avg EPS53.8x
✗Graham<= 15x
Price-to-Book Ratio3.3x
✗Graham<= 1.5x
P/E x P/B178.80
✗Graham<= 22.5
Efficiency0% pass✓ 1✗ 10▾
No clean pass — all 8 investors flag at least one efficiency criterion
ROIC (3-5 yr avg)3.2%
✗Buffett> 10%
ROIC - WACC-6.8%
✗BuffettPositive (WACC = 10%)
ROIC (high and growing)FY2023: ROIC=4.9%; FY2024: ROIC=4.0%; FY2025: ROIC=-0.7%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC-0.0% (RR=0% x ROIC=-0.7%)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)0/5 years above 12% (latest -0.7%)
✗SleepROIC > 12% in a majority of years
Return on Invested Capital-0.7%
✗Munger> 15%
Current Assets / Current Liabilities1.01
✗Dreman> 1.5
Current Ratio Change YoY1.29 -> 1.01
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.42x -> 0.45x
✓PiotroskiImproved YoY
EBIT / (NWC + Net Fixed Assets)-36.5%
✗Greenblatt> 25%
Current Ratio1.01
✗Graham>= 2.0
Valuation models0% pass✗ 9▾
HPE overvalued: all 9 models price fair value below $61.49 (median $7.58)
Buffett fair value$4.50
✗Buffett-1266.4% margin vs $61.49
Pabrai fair value$0.29
✗Pabrai-21103.4% margin vs $61.49
Akre fair value$18.69
✗Akre-229.0% margin vs $61.49
Templeton fair value$20.01
✗Templeton-207.3% margin vs $61.49
Marks fair value$15.67
✗Marks-292.4% margin vs $61.49
Munger fair value$5.28
✗Munger-1064.6% margin vs $61.49
Ackman fair value$7.12
✗Ackman-763.6% margin vs $61.49
Dreman fair value$17.15
✗Dreman-258.5% margin vs $61.49
Greenblatt fair value$7.58
✗Greenblatt-711.2% margin vs $61.49
Profitability7% pass✓ 4✗ 27▾
14 of 15 flag HPE's profitability — Oshaughnessy, Lynch, Buffett +11 more
Net income / market capitalization+0.07%; #3054/6251 (top 48.9%)
✗OshaughnessyTop 10% of eligible cross-section
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE0.2%
✗Lynch> 15%
Net Income Positive (10+ years)12/14 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)8.3%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)-1.3% (latest)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$502.0M
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)0.73
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Margin of SafetyP/B=3.3x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity6.7% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Positive Diluted-EPS Years8/10 years positive
✓Schloss>= 70% positive over 5-10 observed years (app rule)
3-5 Year Diluted EPS CAGR20.2% over 5 years
✗Neff7%-20% annualized
Revenue growth vs. gross and operating margin trendrevenue up, operating margin 7.2% -> -1.3%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-Year EPS CAGR-9.2% CAGR over 3 years
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend7.2% (2023) -> -1.3% (2025)
✗TempletonNon-negative operating-margin trend over 3 years
Discount to Intrinsic Value-258.5% (IV=$17.15 vs Price=$61.49)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency12/13 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue-1.3%
✗Ackman>= 15%
Net Income / Shareholders Equity0.2%
✗Ackman>= 15%
Pre-Tax Income / Revenue-0.8%
✗Dreman>= 8%
Net Income / Shareholders' Equity0.2%
✗Dreman> 12%
Net Income / Total Assets0.08%
✓PiotroskiROA > 0
ROA Change YoY3.62% -> 0.08% (delta: -3.54%)
✗PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=3.85%, ROA=0.08%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY
✗PiotroskiImproved YoY
EBIT / Enterprise Value-0.4%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-0.4%, ROC=-36.5%
✗GreenblattBoth EY > 10% and ROC > 25%
Positive EPS (10 years)11/14 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)13.2%
✗Graham>= 33% growth
Growth13% pass✓ 4✗ 9▾
7 of 8 flag HPE's growth — Lynch, Neff, Sleep +4 more
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: -18.7% vs Rev: 13.8%
✓LynchInventory growth < Revenue growth
3-5 Year Diluted EPS CAGR20.2% over 5 years
✗Neff7%-20% annualized
Revenue growth vs. gross and operating margin trendrevenue up, operating margin 7.2% -> -1.3%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR4.9%
✗SleepCAGR > 7%
5-Year EPS CAGR-9.2% CAGR over 3 years
✗Templeton> 0% (5-year EPS CAGR)
Positive Net Income Frequency12/13 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth3.4%
✗Ackman>= 5%
Positive EPS Growth Frequency3/5 years with positive EPS growth
✓AckmanPositive EPS growth in >= 3 of last 5 years
EPS Growth Direction$1.12 (2013) -> $-0.04 (2025)
✗DremanPositive over recent years
EPS CAGR5.1% CAGR over 11 years
✓Dreman> 5% annualized
EPS Growth (3-yr avg, 10-yr window)13.2%
✗Graham>= 33% growth
Verdicts13% pass✓ 2✗ 13▾
Split decision: 12 FAIL · 2 PASS · 1 NEUTRAL
Overall verdict
✗OshaughnessyFAIL (Rank #645/953 (Top 67.7%))✗LynchFAIL (1/7)✗BuffettFAIL (0/9)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)•SchlossNEUTRAL (4/7)✗NeffFAIL (3/6)✗SleepFAIL (1/6)✗TempletonFAIL (3/8)✗MarksFAIL (2/5)✗MungerFAIL (1/4)✓AckmanPASS (4/9)✗DremanFAIL (2/11)✓PiotroskiPASS (F-Score 4)✗GreenblattRank #2056✗GrahamFAIL (1/9)
Debt & Leverage18% pass✓ 3✗ 11▾
9 of 11 flag HPE's debt & leverage — Lynch, Buffett, Akre +6 more
Total Debt / Shareholders' Equity0.91x
✓SchlossD/E < 1.00x✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗Dreman< 0.8
Total Debt / Equity0.91
✗Lynch< 0.33
Cash - Long-term Debt$-16.0B
✗LynchPositive preferred
Debt/Equity & Interest CoverageD/E: 0.91, IC: -0.4x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Debt Levels0.91
✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
Current Assets / Current Liabilities1.01x
✗SchlossCurrent ratio >= 1.50x (app cutoff)✗Dreman> 1.5
Interest Coverage & Debt/EBITDAIC=-0.4x, D/EBITDA=9.7x
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity0.91
✓Ackman<= 1.0
LT Debt / Total Assets Change24.78% -> 28.65%
✗PiotroskiDecreased YoY
LT Debt vs Net Current AssetsLT Debt $21.7B vs NCA $351.0M
✗GrahamLT Debt <= Net Current Assets
Cash Flow40% pass✓ 5✗ 7▾
6 of 10 flag HPE's cash flow — Oshaughnessy, Lynch, Buffett +3 more
(Operating cash flow - capex) / market capitalization+0.77%; #2416/4487 (top 53.8%)
✗OshaughnessyTop 10% of eligible cross-section
FCF Positive and Growing$627.0M
✗LynchPositive and growing
Free Cash Flow Proxy$502.0M
✗BuffettPositive and growing
P/E or FCF YieldFCF Yield=0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
Operating Cash Flow - Capital Expenditures$627.0M
✓Neff> $0 (app proxy for a strong fundamental case)
Positive Operating Cash Flow frequency13/13 years positive
✓SleepPositive OCF in >= 70% of available years
FCF Positive11/13 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap0.8%
✗Ackman>= 4%
Price / FCF per Share130.9x
✗Ackman<= 25
Price / (CFO / Shares)28.1x
✗Dreman< 8x
Operating Cash Flow$2.9B
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=3.85%, ROA=0.08%
✓PiotroskiCFO/Assets > ROA

Business & financials

Company Profile

Industry: Computers

SIC Sector: Industrial Machinery & Computing

Size: Large Cap($81.6B)

Revenue: $34.3B+13.8% YoY

Net Income: $57.0M-97.8% YoY

Financial Snapshot

Operating Margin-1.3%

Return on Equity0.2%

Debt / Equity0.91

Current Ratio1.01

EPS (Diluted)$-0.04+25.3% 1y

Buybacks (1y)$202.0M

Buybacks (2y)$352.0M

Shares Retired−1.5% / −2.7% 2y

Similar Companies

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PANWPalo Alto Networks Inc

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STXSeagate Technology Holdings plc

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Shareholder Return

Fiscal 2025

Issued 1.5% of shares last year, 2.7% issued over two.

Buybacks: $202.0M
Dividends: $684.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22

−74.4% = −74.7% + 1.0%

FY23

133.3% = 133.3% + 0.0%

FY24

25.3% = 27.4% + −1.6%

Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Market Cap	$81.6B	$27.9Best.	$18.7Best.	$18.8Best.	$18.6Best.
Revenue	$34.3B↑14%	$30.1B↑3%	$29.1B↑2%	$28.5B↑3%	$27.8B
Operating Income	-$437.0M↓120%	$2.2B↑5%	$2.1B↑167%	$782.0M↓31%	$1.1B
Net Income	$57.0M↓98%	$2.6B↑27%	$2.0B↑133%	$868.0M↓75%	$3.4B
EPS (Diluted)	$-0.04↓102%	$1.93↑25%	$1.54↑133%	$0.66↓74%	$2.58
Gross Margin	—	—	—	—	—
Operating Margin	-1.3%↓118%	7.3%↑1%	7.2%↑161%	2.7%↓33%	4.1%
ROE	0.2%↓98%	10.4%↑9%	9.6%↑119%	4.4%↓75%	17.2%
Total Debt	$22.4B↑23%	$18.2B↑48%	$12.4B↓1%	$12.5B↓7%	$13.4B
Shareholders' Equity	$24.7B↓1%	$24.8B↑17%	$21.2B↑7%	$19.9B↓1%	$20.0B
Current Ratio	1.01↓21%	1.29↑49%	0.87↓2%	0.88↓3%	0.91
Debt / Equity	0.91↑23%	0.74↑26%	0.58↓7%	0.63↓7%	0.67
Operating Cash Flow	$2.9B↓33%	$4.3B↓2%	$4.4B↓4%	$4.6B↓22%	$5.9B
Free Cash Flow	$627.0M↓68%	$2.0B↑23%	$1.6B↑9%	$1.5B↓56%	$3.4B

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Computers

HPE vs Peers — Financial Grading

Revenue$34.3BMedian

Net Income$57.0MBottom 25%

ROE0.2%Bottom 25%

D/E0.91Median

Op. Margin-1.3%Bottom 25%

Curr. Ratio1.01Median

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
Apple Inc.AAPL	$4.81T	$329.40	$416.2B	$112.0B	151.9%	1.23	32.0%	0.89	1/9	5/9	3/7	1/3	F-Score 8	3/11
CISCO SYSTEMS, INC.CSCO	$420.8B	$106.74	$56.7B	$10.2B	21.7%	0.60	20.8%	1.00	4/9	6/9	3/7	0/3	F-Score 8	5/11
Palo Alto Networks IncPANW	$317.7B	$388.41	$9.2B	$1.1B	14.5%	0.00	13.5%	0.94	1/9	3/9	3/7	0/3	F-Score 5	4/11
Seagate Technology Holdings plcSTX	$209.0B	$921.51	$12.2B	$3.2B	146.9%	1.65	33.6%	1.67	3/9	5/9	4/7	1/3	F-Score 8	6/11
INTERNATIONAL BUSINESS MACHINES CORPIBM	$207.3B	$219.99	$67.5B	$10.6B	32.4%	1.88	—	0.96	3/9	2/9	3/7	0/3	F-Score 6	4/11
WESTERN DIGITAL CORPWDC	$163.5B	$453.48	$9.5B	$1.9B	35.6%	1.31	24.5%	1.08	1/9	1/9	2/7	1/3	F-Score 3	3/11
Fortinet, Inc.FTNT	$130.2B	$175.96	$6.8B	$1.9B	149.8%	0.81	30.7%	1.17	2/9	5/9	3/7	1/3	F-Score 6	3/11
NetApp, Inc.NTAP	$41.1B	$209.18	$6.2B	$1.3B	94.4%	1.84	26.8%	1.44	3/9	5/9	3/7	1/3	F-Score 8	5/11