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Hewlett Packard Enterprise Company

2HP.DE
41
Computer Hardware · Technology
Exchange
Frankfurt Stock Exchange
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Apr 30, 2026
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Strong
Stability
Good
Valuation
Good
Dividends
Weak

Winston Score History

The full picture

Hewlett Packard Enterprise (HPE) sells technology equipment and services to businesses and governments, not regular consumers. Its main products include servers, data storage systems, and networking gear — the hardware that companies use to run their own data centers. HPE also offers cloud computing services and software to help organizations manage their IT infrastructure.

HPE makes money by selling hardware upfront and through ongoing service contracts, software subscriptions, and financing arrangements. It operates globally, with significant revenue from North America, Europe, and Asia-Pacific, and reported roughly $32 billion in annual revenue. Its competitive position relies on long-standing relationships with large enterprise customers and a broad product portfolio, though it faces intense competition from Dell, Cisco, and cloud providers like AWS that reduce demand for on-premise hardware. The key growth driver is its GreenLake platform, which lets customers pay for on-site hardware like a cloud subscription — but slowing enterprise IT spending remains a persistent risk.

Growth Profile

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

Revenue Growth

+39.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+154.9% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

0.5%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€11.9B 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 40% 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.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
33.5%
Modest — 33.5% gross margin
Profit after running costs
Operating Margin
7.7%
Modest — 7.7% operating margin
Return on the money invested
ROCE
3.6%
Weak — 3.6% 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 growth
Sales YoY
+22.6%
Fast-growing sales (+22.6% YoY)
Profit growth
EPS YoY
+5.8%
Modest earnings growth (+5.8% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
408%
Turns 408% of profit into real cash
Spare cash per sale
FCF Margin
10.3%
Modest free cash flow (10.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.84
Moderate — manageable debt (0.84)
Covers its interest
Interest Cover
3.56x
Tight — interest eats into profit (3.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
42.4x
no trend
Pricey — P/E 42.4

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

Cheaper or dearer next year
P/E vs Forward
+28.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (42.4 → 14.0)

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Dividends

Dividend
Dividend Yield
1.06%
no trend
Small dividend — 1.06% yield

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

Dividend record
Dividend Growth
+1.2%
no trend
Dividend flat

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