Rankings Tech hardware & optics Hewlett Packard Enterprise
Hewlett Packard Enterprise
72
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- Multiples vs own history and peers−20
- Memory prices and supply−4
- ROIC−3
Strengths
- Raised guidance+3
- Order book+2
How the score is built
From 100 to 72, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 51.19 USD
- Median analyst target
- 70.00 USD
- Upside to median
- +36.7%
- Analysts
- 24
- Target range
- 62.00 – 92.00 USD
- 52-week change
- +110%
- P/E (trailing)
- 26.1
- Forward P/E
- 11.0
- PEG
- 0.33
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−8 of −30
- −2MarginGAAP operating margin is 8.1% TTM – the same level as in 2021-2024 (8.1-8.4%) – even though Q3 reached 11.4% (non-GAAP 16.2%); gross margin has risen to 36.6% from 30.3% in FY25, but part of this is due to the Juniper mix.
- −3ROICROIC of 8.3% TTM versus 4.8-7.6% in 2021-2025 and WACC of about 10.5%; still below the cost of capital after the debt-financed Juniper deal.
- −2Quality of growthNetworking +75% and routing +270% in Q3 are primarily acquired (Juniper); servers (+35%) are driven by lower-margin AI systems, while storage grew only 10% and financing fell.
- −1MoatAI servers are a competitive market (Dell, Supermicro, Lenovo and ODMs) where GPUs and memory from Nvidia and the memory makers account for most of the cost of goods.
Price
Today's multiples against the company's own history and its peers. · 1 finding−20 of −35
- −20Multiples vs own history and peersForward P/E 15.8 versus 7.1-10.8 in FY21-25 (average about 8.5); trailing P/E 37 versus 5.6-21; EV/EBITDA 16.2 versus 6.1-11.6; P/S 2.3 versus 0.64-0.94 and P/B 3.7 versus 0.9-1.3. The stock is +182% in a year, and analysts' average price target (USD 72) is below the share price.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−12 of −35
- −4Memory prices and supplyManagement has warned that DRAM and NAND prices have risen by triple-digit percentages and will stay high well into 2027; memory makes up more than half of the cost of a server and weighs on the Cloud & AI segment.
- −3DebtDebt 20.3bn USD versus cash 6.2bn (net debt 14.1bn, 2.0x EBITDA) and interest cover of 3.7; leverage has fallen from 4.2x EBITDA in FY25, but the balance sheet is still heavier than before Juniper.
- −2Insider sellingCEO Antonio Neri sold 264,432 shares in March and 234,598 in April 2026, and CFO Marie Myers sold 93,583 shares on 5/5 - weeks before the Q2 results; no insider purchases.
- −2DilutionShare count has risen 6% over a year (stockanalysis), while buybacks were only 447m USD over nine months; the buybacks do not offset the dilution.
- −1RegulationThe court approved the DOJ settlement on Juniper on 12 Aug 2026 but found several compliance breaches during the case, and 13 states fought it; an appeal cannot be ruled out.
Plus
Only documented strengths. · 2 findings+5 of +15
- +3Raised guidanceFY26 revenue growth has been raised to 34-37% from 29-33%, and non-GAAP EPS is guided to 3.75-3.85 USD; the FY27 target is 13-17% growth and FCF of at least 5.0bn USD.
- +2Order bookRecord orders in Q3: AI systems orders USD 2.4bn (+30% quarter over quarter) and total AI order book 7.6bn; order intake grew 42% versus revenue +34%.
Caveats
What the score does not capture, or where the data is weak.
Fiscal year to 31/10; the figures are TTM to 31/7-2026. Juniper (acquired July 2025) makes growth partly bought, and organic growth is not stated. The GAAP result in Q3 includes a gain of USD 444m from the sale of H3C. AI systems make up about 13% of quarterly revenue (about 1.6bn of 12.2bn) according to secondary sources; the company's press release does not break it out. Insider sales are from aggregators, not Form 4. The reason for the +6% share count (stockanalysis) has not been verified.
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