Hewlett Packard Enterprise reported stellar second-quarter results that fundamentally shift the timeline of its formerly multiyear turnaround. Revenue was up 40% year over year, while all guidance points were raised materially.
If HPE can execute on its Juniper acquisition, leading to higher margins, and reinvigorate growth in its hybrid cloud business while benefiting from the AI server wave, there should be upside.
The AI server market’s current growth may not be durable, and future growth will depend on AI demand proving sustainable. OEMs like HPE will struggle to see this structurally change the profitability of their overall server business.
|
Metric
|
HPE
|
DELL
|
CSCO
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.25 | 28.96 | 29.62 |
Price/Book Value | 2.52 | — | 9.77 |
Price/Sales | 1.67 | 1.99 | 7.94 |
Price/Cash Flow | 9.76 | 21.16 | 28.03 |
|
Metric
|
HPE
|
DELL
|
CSCO
|
|---|---|---|---|
Quick Ratio | 0.57 | 0.61 | 0.66 |
Current Ratio | 1.09 | 0.95 | 0.92 |
Interest Coverage | 4.05 | 7.09 | 10.01 |
|
Metric
|
HPE
|
DELL
|
CSCO
|
|---|---|---|---|
Return on Assets (Normalized) | 4.65% | 9.54% | 13.34% |
Return on Equity (Normalized) | 14.24% | — | 34.57% |
Return on Invested Capital (Normalized) | 8.22% | 36.69% | 21.97% |
|
1-Day Chart
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Morningstar Rating for Stocks
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United States