Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have read HPE's latest quarterly filing for the period ended April 30, 2026, listened to what management has told the market, and studied a decade of this company's economics. We arrive at our conclusion the way we always do — by asking first whether this is a wonderful business, and only then what it costs. The answer to the first question is no. HPE is an average business. It sells servers, storage, networking gear, and lease financing to enterprises and governments. Roughly half its revenue comes from selling computers that are, at bottom, a commodity — a box around someone else's silicon. The company has earned a return on invested capital of roughly 3% on a five-year average, and about 5.7% today — below its own cost of capital.
Recent filings analysed: 8-K (2026-08-04), 8-K (2026-07-24), 10-Q (2026-06-02), 8-K (2026-06-01).
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