Hewlett Packard Enterprise Company (HPE) Stock Analysis & Winston Score

Hewlett Packard Enterprise sells the computers, servers, and networking equipment that large businesses and governments use to run their operations. Its main products include servers, data storage systems, and networking gear sold under the Aruba brand, along with cloud and software services that help companies manage their technology. HPE is one of the largest providers of enterprise IT infrastructure in the world.

HPE makes money by selling hardware, software licenses, and IT services, with a growing portion coming from subscriptions through its GreenLake platform, which lets customers pay for computing resources on a flexible basis. The company operates globally, with significant revenue from North America, Europe, and Asia, and competes against large rivals like Dell and Cisco. Its main growth driver is the shift toward AI-ready servers and hybrid cloud infrastructure, but its low operating margins and heavy competition leave little room for error if demand slows.

Winston Score History

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8 trades / 12mo

3 Congressional buys and 5 sells on HPE in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+40.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+154.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2.5B/ year

↑ Rising (+12% vs prior year)

7.3% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

0.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$6.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Hewlett Packard Enterprise Company grew revenue 41% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.33B (2021) → 1.32B (2025)

Score breakdown

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Quality

Gross Margin

36.5%

Modest — 36.5% gross margin

Operating Margin

7.0%

Modest — 7.0% operating margin

ROCE

1.6%

Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+23.2%

Fast-growing sales (+23.2% YoY)

EPS YoY

+4.8%

Modest earnings growth (+4.8% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

419%

Turns 419% of profit into real cash

FCF Margin

9.0%

Modest free cash flow (9.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.84

Moderate — manageable debt (0.84)

Interest Cover

21.37x

Comfortably covers interest (21.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

51.7x

Expensive — P/E 51.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+38.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (51.7 → 13.2)

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Dividends

Dividend Yield

1.05%

Small dividend — 1.05% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+7.2%

Dividend growing modestly (7.2% YoY)

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