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ValeriusBeta - Not investment advice
Research · S&P 500 · Information Technology
HPE · Hewlett Packard Enterprise
The numbers, the scorecard and what analysts say, with the source for each. Information, not advice.
Value Scorecard · run 2026-10-18
13 value checks: 12 scored 1 to 5, plus moat evidence
27/60
low-moderate value scoreEarnings & returns
EPS Trend
1/5Diluted EPS: $0.66 (2022), $1.54 (2023), $1.93 (2024), -$0.04 (2025). The latest figure is at or below zero; the framework scores that as 1.
ROE Trend
2/5ROE (net income / common equity): 4.4% (2022), 9.6% (2023), 10.3% (2024), -0.2% (2025). Median 7.0%, lowest -0.2%; the framework scores a median 5-10% as 2.
ROIC
1/5ROIC of -0.9%: operating income of -$437.00M divided by $51.26B of capital (total assets $75.91B minus current liabilities $24.64B), fiscal year to Oct 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores below 5% as 1.
Profit Margins
3/5Net margin of 6.7%; the framework scores 5-10% as 3; gross margin 36.6%, operating margin 12.6%.
Balance sheet & cash
Debt-to-Equity
4/5Debt-to-equity of 0.77; the framework scores 0.3-0.8 as 4 (total debt $20.32B, total cash $6.22B).
Free Cash Flow
1/5Free cash flow (operating cash flow minus capital expenditure): $1.47B (2022), $1.60B (2023), $1.97B (2024), $627.00M (2025). The latest figure is half the 2022 figure or less; the framework scores that as 1.
Retained Earnings
1/5Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$5.35B (2022), -$3.95B (2023), -$2.07B (2024), -$2.81B (2025). The latest balance is negative (an accumulated deficit); the framework scores that as 1.
Valuation models
Graham IV
1/5IV = EPS x (8.5 + 2g) x (4.4 / Y) = $1.94 x (8.5 + 2 x 5.0) x (4.4 / 4.5) = $35.09 (EPS CAGR unavailable, default 5% applied). Current price $55.13; price is 57.1% above the model value.
DCF Value
4/5FCF/share = $3.570, stage 1 growth = 8.5% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $17.13, PV of terminal value = $49.04, DCF value = $66.17. Current price $55.13; price is 16.7% below the model value.
Margin of Safety
3/5Graham value $35.09 (price is 57.1% above the model value); DCF value $66.17 (price is 16.7% below the model value).
Price-to-Book
3/5P/B of 2.76; the framework scores 1.5-3.0 as 3.
Business quality
Moat Evidence
Not scoredA moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.
Return on capital, each year
Above 15% in 0 of 10 years (2016-2025); lowest -0.9%, highest 6.8%.
Gross margin, each year
Not reported: the filings don’t state a gross profit or cost of revenue figure, as is common for oil and gas companies, banks and insurers.
Competition, in the company’s own words · 10-K filed Dec 18, 2025
We have a broad technology portfolio of enterprise IT infrastructure products, solutions, and services, including our aaS offerings, and these offerings encounter strong competition. We compete primarily on the basis of technology, innovation, performance, price, quality, reliability, brand, reputation, distribution, range of products and services, ease of use of our products, account relationships, customer training, service and support, security, and the availability of our IT infrastructure offerings. The markets in which we compete are characterized by strong competition among major corporations with long-established positions and a large number of new and rapidly growing firms. Within these markets, most product life cycles are relatively short, and to remain competitive, we must develop new products and services, continuously enhance our existing products and services, and compete effectively on the basis of the factors listed above, among others. In addition, we compete with many of our current and potential partners, including OEMs that design, manufacture, and market their products under their own brand names. Our successful management of these competitive partner relationships is critical to our future success. Moreover, we anticipate that we will have to continue to adjust prices on many of our products and services to stay competitive.
The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.
Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.
Capital Allocation
3/5Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $4.00B paid out against $5.67B of free cash flow (pass); total debt $13.48B to $24.08B, up 78.6%, 5.5x EBITDA (fail: up more than 10% and above 2x EBITDA); shares outstanding 1.28B to 1.32B, up 2.9% (fail: up more than 2%). 2 of 4 tests passed; the framework scores that as 3.
Filings
Company notices to the SEC
Not scoredThree kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.
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These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.
How the Graham and DCF values were calculated
Graham Formula:
IV = EPS x (8.5 + 2g) x (4.4 / Y)
EPS = $1.94, g = 5.0%, Y = 4.5
IV = $35.09
Current price $55.13 vs Graham value $35.09 — price is 57.1% above the model value.
DCF:
FCF/share = $3.570
Stage 1 growth = 8.5% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
Y1: $3.873 → PV $3.521
Y2: $4.202 → PV $3.473
Y3: $4.560 → PV $3.426
Y4: $4.947 → PV $3.379
Y5: $5.368 → PV $3.333
Stage 1 PV sum = $17.13
Terminal value at end of Y5 = $78.98
PV of terminal value = $49.04
DCF value = $66.17
Current price $55.13 vs DCF value $66.17 — price is 16.7% below the model value.Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $55.13. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.
Recent headlines · third-party publishers · not investment advice
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The 8 newest headlines whose title names the company, shown automatically and never chosen by Valerius. From third-party publishers via Yahoo Finance, linked to the source. Valerius doesn't write or endorse them. Not investment advice.