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HPE — Hewlett Packard Enterprise

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 8.7%
Profit Margins 4.01%
Return on Equity 6.31%
Return on Assets 1.97%
Free Float 1.32B
Dividend Yield 1.30%
Short Int % Utilisation 5.34%

2.2 Growth

Metric Value
Revenue Growth 40.0%
Free Cash Flow 3.84B
EBITDA 13.55 (Ratio)
Enterprise Value 76.31B
EV/Revenue 1.97
EV/EBITDA 13.55

Revenue growth of 40.0% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 226.57%
Risk / Std Dev (Ann.)* 52.53%
1-Year Price Return* 183.24%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $58.71
52-Week Range $19.84 – $64.25
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $34.30B $30.13B
Net income Reported net income $-59.00M $2.55B
Total assets Year-end reported balance $75.91B $71.26B
Shareholders’ equity Year-end reported balance $24.69B $24.82B
Net margin Net income ÷ revenue -0.17% 8.48%
Asset turnover Revenue ÷ total assets 0.4518x 0.4228x
Equity multiplier Total assets ÷ shareholders’ equity 3.0746x 2.8716x
ROE Net margin × asset turnover × equity multiplier -0.24% 10.29%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: The modelled terminal-year FCFF is non-positive, so a perpetuity valuation would not be reliable. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $55.24
Market capitalisation $73.14B
Revenue $34.30B
EBIT $1.64B
Reported free cash flow $627.00M
FCF yield 0.86%
Net debt / EBITDA 4.18x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:36:44.761544 UTC; latest reported fiscal period: 2025-10-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 55.35% 35.92%
Adjusted R² 0.27 0.31
Annualised residual volatility 43.51% 42.10%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 2.28 (8.91) 2.06 (7.23)
Size (SMB) -0.61 (-1.77) -1.09 (-3.01)
Value (HML) 1.18 (3.95) 0.84 (2.35)
Profitability (RMW) NM -0.99 (-3.26)
Investment (CMA) NM 1.36 (2.61)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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