Hewlett Packard Enterprise Company — Communication Equipment. Scored on the same transparent model behind the daily rankings.
★
HPE
Hewlett Packard Enterprise Company · Communication Equipment
FCF$4.0bB
Rev+22.6%A-
D/E0.84C+
P/E49.0xC+
PEG0.85B+
56.8Score
$52.39$69.4B
1Y Target$65.56Analyst consensus · 19 analysts
5Y Target$95.98Compound horizon
10Y Target$142.38Long-dated conviction
FCF$4.0bTTMB
FCF $4.0b — solid, comfortably covers operations and capital return
Rev+22.6%TTM YoYA-
Revenue +22.6% — strong growth, well above S&P median (~7%)
D/E0.84C+
D/E 0.84 — above the Technology debt median (≈75th pctile)
P/E49.0xC+
P/E 49.0 — above the Technology median (≈75th pctile)
PEG0.85B+
PEG 0.85 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 56.8
Quality0.45
Growth0.83
Value0.49
Why this score
Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
18% off the 12-month high
vs DCF fair value17% aboveest. fair value ~$45
What the price assumes: free cash flow compounding at ~15% a year for the next decade — vs the ~17% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability26% · Bgross profit ÷ total assets (Novy-Marx)
ROIC2.5% · Creturn on invested capital — not score-weighted
Why now
Communication Equipment · market cap $69.4b. 18% off the 52-week high of $64.25. Revenue growing +23%, comfortably above the S&P median. PEG 0.85 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Buy with a mean 1-yr target of $65.56 (implying +25% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $69.4b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Beta 1.44 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 49x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Net margin 4.0% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $65.56 (19-analyst consensus) — fundamentals + valuation re-rating. 5 yr $95.98 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $142.38 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
HPE vs the Top Picks average
Pillar
HPE
Book avg
Diff
Quality
0.45
0.83
-0.38
Growth
0.83
0.91
-0.08
Value
0.49
0.75
-0.25
Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · HPE
Trend
+2.2 over 33 daily scores
From 54.6 (Jun 22) → 56.8 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · HPE
$
%
%
Shares to buy
38
Position size
$1,991
4.0% of portfolio
Stop price
$39.29
25% below $52.39
$ at risk if stopped
$497.70
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Hewlett Packard Enterprise Company (HPE): score, valuation & FAQ
Hewlett Packard Enterprise Company (HPE) is a Communication Equipment company that scores 56.8 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-) and PEG (B+). On valuation, HPE sits about 17% above our discounted-cash-flow fair value — the current price implies roughly 15% annual free-cash-flow growth over the next decade.
Is HPE a good stock to buy?
Bull Rankings scores HPE 56.8 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A-) and PEG (B+). A score is a quantitative screen of Hewlett Packard Enterprise Company's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does HPE score 56.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). HPE earns its highest marks on Rev (A-) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is HPE overvalued or undervalued?
Based on $52.39, HPE sits about 17% above our discounted-cash-flow fair value — the current price implies roughly 15% annual free-cash-flow growth over the next decade. It trades at a 49.0x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in HPE?
Beta 1.44 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 49x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Net margin 4.0% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.