Skip to Content

Hewlett Packard Enterprise Co HPE

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

HPE’s Growth Ventures Continue Their Momentum As Legacy Faces Headwinds in Q3; Maintaining $14 FVE

Mark Cash Senior Equity Analyst

Analyst Note

| Mark Cash |

We are maintaining our $14 fair value estimate for no-moat Hewlett Packard Enterprise, or HPE, after the company reported third-quarter earnings. While year-over-year revenue growth was largely in line with our expectations, HPE’s adjusted earnings came in much higher due to a strong performance from higher margin products and better operating expense management. HPE’s growth areas, including solutions for secure connectivity in a cloud-first environment and high-performance compute systems, performed very well as legacy solutions like commodity servers have not recovered out of the pandemic yet. With no large surprises coming out of the quarter, we view shares, which stayed stable after reporting, as fairly valued.

Read Full Analysis

Company Profile

Business Description

Hewlett Packard Enterprise is a supplier of IT infrastructure products and services. The company operates as three major segments. Its hybrid IT division primarily sells computer servers, storage arrays, and Pointnext technical services. The intelligent edge group sells Aruba networking products and services. HPE's financial services division offers financing and leasing plans for customers. The Palo Alto, California-based company sells on a global scale and has approximately 66,000 employees.

Contact
11445 Compaq Center West Drive
Houston, TX, 77070
T +1 650 687-5817
Sector Technology
Industry Communication Equipment
Most Recent Earnings Jul 31, 2021
Fiscal Year End Oct 31, 2021
Stock Type High Yield
Employees 59,400

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.