Is the business good?
How good a business is HPE?
Hewlett Packard Enterprise earns 2.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
2.8%
Return on invested capital · cost of capital 9.0% · 6.2 points below what the capital costs: growth destroys value
- Operating margin
- 3.8%
Operating margin · Communication Equipment median 4.4% · 12 months to Q2 2026
- Cash conversion
- 2.56×
Cash conversion · 0.07× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +8.3%
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 Q2 2026
- 3.8%
- Net margin12 months to Q2 2026
- 4.0%
- Free cash flow margin
- 10%
- R&D as % of revenue
- 8.2%
- Revenue, trailing twelve months
- $38.8B
- Free cash flow, trailing twelve months
- $3.99B
- Net income, trailing twelve months
- $1.56B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Equipment
Ranks #4 of 21 by Smart Score