HPEHewlett Packard Enterprise
Is the business good?
A genuinely good business: earnings fully cash-backed (3.3×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HPE?
Hewlett Packard Enterprise earns 5.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.8 points below what the capital costs: growth destroys value
- Operating margin
- 6.2%
Operating margin · Communication Equipment median 5.2% · 12 months to Q3 2026
- Cash conversion
- 3.26×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −1.2% |
| FY2021 | 4.1% |
| FY2022 | 2.7% |
| FY2023 | 7.2% |
| FY2024 | 7.3% |
| FY2025 | −1.3% |
Details›
- Operating margin12 months to Q3 2026
- 6.2%
- Net margin12 months to Q3 2026
- 6.7%
- Free cash flow margin
- 9.9%
- R&D as % of revenue
- 8.8%
- Revenue, trailing twelve months
- $41.9B
- Free cash flow, trailing twelve months
- $4.16B
- Net income, trailing twelve months
- $2.79B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from HPE and who it buys from, as the companies report it.
- Customer one10%
Share of revenue · FY2025 10-K
- INTCIntel
Named in HPE’s FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; HPE’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported. A link without a share is named in one of the two companies’ annual reports, without a figure.
Communication Equipment
The closest names by size in the same industry