Hewlett Packard Enterprise CoSTU:2HP -0.74%71 Gross Margin % is 36.52% as of Apr. 2026, which is 13% above its 10-year median of 32.43. GuruFocus rates STU:2HP with a GF Score™ of 71/100 and a GF Value™ of €21.46 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 2,449 Hardware companies, Hewlett Packard Enterprise Co ranks better than 67.62% on this metric.
Hewlett Packard Enterprise Co (STU:2HP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hewlett Packard Enterprise Co had a gross margin of 36.52% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hewlett Packard Enterprise Co Gross Margin % Related Terms
Hewlett Packard Enterprise Co Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hewlett Packard Enterprise Co Gross Margin % Chart
STU:2HP vs LITE, MSI, UI: Gross Margin % Comparison
For the Communication Equipment subindustry, Hewlett Packard Enterprise Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hewlett Packard Enterprise Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hewlett Packard Enterprise Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hewlett Packard Enterprise Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hewlett Packard Enterprise Co (STU:2HP) has a Gross Margin % of 36.52% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hewlett Packard Enterprise Co and its competitors. This is 13% above median its historical median of 32.43. Over the past decade, Hewlett Packard Enterprise Co's Gross Margin % has ranged from 29.92 to 35.14. According to the industry distribution chart, Hewlett Packard Enterprise Co ranks #793 out of 2449 companies in the Hardware industry, placing it in the top 32.4%.
Is Hewlett Packard Enterprise Co's Gross Margin % too high?
Hewlett Packard Enterprise Co's current Gross Margin % of 36.52% is 13% above median its 10-year median of 32.43. Over the past 10 years, this metric has ranged from a low of 29.92 to a high of 35.14. The Hardware industry median Gross Margin % is 24.52. Hewlett Packard Enterprise Co's value of 36.52% is 48.9% above this industry median. Based on the distribution chart, Hewlett Packard Enterprise Co ranks #793 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Hewlett Packard Enterprise Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hewlett Packard Enterprise Co's Gross Margin % compare to LITE and MSI?
According to the Hardware industry distribution chart, Hewlett Packard Enterprise Co ranks #793 out of 2449 companies for Gross Margin %. This puts Hewlett Packard Enterprise Co in the upper half of its industry. The industry median Gross Margin % is 24.52. Hewlett Packard Enterprise Co's value of 36.52% is 48.9% above this benchmark. Historically, Hewlett Packard Enterprise Co's own Gross Margin % has ranged from 29.92 to 35.14 over the past decade. While the company's 10-year median is 32.43 vs. the industry median of 24.52, Hewlett Packard Enterprise Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,449 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hewlett Packard Enterprise Co's current Gross Margin % of 36.52% is 48.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hewlett Packard Enterprise Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hewlett Packard Enterprise Co's current Gross Margin % is 36.52%, which is 13% above median its own 10-year median of 32.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hewlett Packard Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Hewlett Packard Enterprise Co (STU:2HP) is currently considered Significantly Overvalued. The stock's GF Value™ is €21.46, compared to a current price of €42.77 — trading 99.3% above its estimated fair value. The current Gross Margin % is 36.52%, which is 13% above median its 10-year median of 32.43 and 48.9% above the Hardware industry median of 24.52. Hewlett Packard Enterprise Co's overall GF Score™ is 71/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hewlett Packard Enterprise Co (STU:2HP), the current Gross Margin % is 36.52% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hewlett Packard Enterprise Co (STU:2HP) Overvalued in 2026?
Based on GuruFocus' analysis, Hewlett Packard Enterprise Co stock appears to be overvalued.
The current stock price of €42.77 is trading 99.3% above its estimated GF Value™ of €21.46.
GuruFocus considers Hewlett Packard Enterprise Co to be Significantly Overvalued.
Key valuation signals for STU:2HP:
Gross Margin %: 36.52% (13% above median its 10-year median of 32.43)
GF Value™: €21.46 vs. price of €42.77 (99.3% above fair value)
Industry Position: 48.9% above the Hardware median (#793 of 2449)
No single metric tells the full story. See the STU:2HP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hewlett Packard Enterprise Co Business Description
Hewlett Packard Enterprise is an information technology vendor that provides hardware and software to enterprises. Its primary product lines are compute servers, storage arrays, and networking equipment; it also has a high-performance computing business. HPE's stated goal is to be a complete edge-to-cloud company. Its portfolio enables hybrid clouds and hyperconverged infrastructure.
71GF Score
Get the complete analysis for STU:2HP
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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