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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2832
Positioning
Market Dominance
Manufacturing
Computer Hardware
$27.1B
Antonio F. Neri
Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly. The company offers general purpose servers for multi-workload computing and workload-optimized servers. It also provides HPE Aruba product portfolio that includes wired and wireless local area network hardware products, such as Wi-Fi access points, switches, routers, and sensors.
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Dates updated upon official exchange announcement.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HPE Hewlett Packard Enterprise Co | 45 | 53 | 54 | 42 | 72.1x | 424.9x | 1.6% | 0.5% | 32.0% | 0.2% | 1.0% | 26.8% | 2.5% | 88.0x | $27.1B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Hewlett Packard Enterprise Co (HPE) receives a "Reduce" rating with a composite score of 44.8/100. It ranks #2832 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for HPE.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 53 | 49 | +4NEUTRAL |
| MOMENTUM | 42 | 32 | +10ALPHA |
| VALUATION | 54 | 44 | +10ALPHA |
| INVESTMENT | 25 | 23 | +2NEUTRAL |
| STABILITY | 60 | 57 | +3NEUTRAL |
| SHORT INT | 24 | 10 | +14ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -2.2% vs WACC 7.3% (spread -9.4%)
GM 32% vs sector 44%, OM 0% vs sector 3%
Capital turnover 2.15x, R&D intensity 7.3%
Rev growth 27%, 10yr history
Interest coverage -0.4x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Hewlett Packard Enterprise Co (HPE) as a Reduce with a composite score of 44.8/100 at a current price of $20.25. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Hewlett Packard Enterprise Co holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.8/100 places it at rank #2832 in our full universe.
No Moat
High
Poor
Fair Value
Stable competitive position in a defensive sector.
Elevated P/E ratio of 72.1x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
Hewlett Packard Enterprise Co represents a reduce based on multi-factor quantitative performance.
Hewlett Packard Enterprise Co receives a Reduce rating from our analysis, with a composite score of 44.8/100 and 2 out of 5 stars, ranking #2832 out of 7,333 stocks. HPE's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 53/100, HPE shows adequate but unremarkable business quality. The company reports a return on equity of 1.6% (sector avg: -1.9%), gross margins of 32.0% (sector avg: 44.1%), net margins of 1.0% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
HPE's value score of 54/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 72.07x, an EV/EBITDA of 424.95x, a P/B ratio of 1.15x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Hewlett Packard Enterprise Co's investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 26.8% vs. a sector average of 6.7% and a return on assets of 0.5% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
HPE is currently showing below-average momentum at 42/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 26.8% year-over-year, while a beta of 1.63 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 60/100, HPE exhibits average financial resilience. Key stability metrics include a beta of 1.63 and a debt-to-equity ratio of 88.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Hewlett Packard Enterprise Co's short interest score of 24/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include high market sensitivity (beta: 1.63), elevated leverage (D/E: 88.00x). At $27.1B (large-cap), HPE carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
HPE pays a solid dividend yield of 2.5%, contributing an income component to total returns. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
Hewlett Packard Enterprise Co is a large-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2832 of 7,333 overall (61st percentile). Key comparisons include ROE of 1.6% exceeding the -1.9% sector median and operating margins of 0.2% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While HPE currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Short Int. (24) would have the largest impact on the composite score.
EV/EBITDA 3608% ABOVE SECTOR MEDIAN
ROE 184% BELOW SECTOR MEDIAN
Gross Margin 27% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
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