HPE – Market expectations are for Uniform ROA to fade, and management may have concerns about supply chain disruptions, demand, growth, and profitability

January 18, 2022

  • Hewlett Packard Enterprise (HPE) currently trades below corporate and near historical averages relative to Uniform earnings, with a 15.6x Uniform P/E (Fwd. V/E’).
  • At these levels, markets are pricing in expectations for Uniform ROA to decline to 8%, accompanied by 3% Uniform asset growth.
  • Meanwhile, analysts expect Uniform ROA to only fade to 11% levels through 2023, accompanied by 2% Uniform asset growth.
  • If sustained going forward, these levels would imply a stock price closer to $21, representing approximately 39% potential equity upside for the firm.
  • That said, the firm’s most recent earnings call suggests management may have concerns about supply chain disruptions, demand, growth, and profitability.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683