HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPE - US42824C1099 - Common Stock
21 EUR
+0.48 (+2.34%)
We assign a fundamental rating of 3 out of 10 to 1HPE. 1HPE was compared to 30 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of 1HPE have multiple concerns. 1HPE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1HPE had positive earnings in the past year.
In the past year 1HPE had a positive cash flow from operations.
1HPE had positive earnings in 4 of the past 5 years.
In the past 5 years 1HPE always reported a positive cash flow from operatings.
1.2 Ratios
1HPE's Return On Assets of -0.08% is on the low side compared to the rest of the industry. 1HPE is outperformed by 63.33% of its industry peers.
The Return On Equity of 1HPE (-0.24%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.80%, 1HPE is in line with its industry, outperforming 43.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1HPE is significantly below the industry average of 15.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROIC | 2.8% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
1.3 Margins
1HPE's Operating Margin of 4.79% is in line compared to the rest of the industry. 1HPE outperforms 56.67% of its industry peers.
In the last couple of years the Operating Margin of 1HPE has declined.
Looking at the Gross Margin, with a value of 30.26%, 1HPE is in line with its industry, outperforming 50.00% of the companies in the same industry.
1HPE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% |
OM growth 3Y-15.03%
OM growth 5Y-4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.2%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1HPE is destroying value.
Compared to 1 year ago, 1HPE has more shares outstanding
The number of shares outstanding for 1HPE has been increased compared to 5 years ago.
The debt/assets ratio for 1HPE is higher compared to a year ago.
2.2 Solvency
1HPE has an Altman-Z score of 0.86. This is a bad value and indicates that 1HPE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, 1HPE is doing worse than 63.33% of the companies in the same industry.
The Debt to FCF ratio of 1HPE is 35.67, which is on the high side as it means it would take 1HPE, 35.67 years of fcf income to pay off all of its debts.
1HPE has a Debt to FCF ratio of 35.67. This is in the lower half of the industry: 1HPE underperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that 1HPE is somewhat dependend on debt financing.
1HPE has a worse Debt to Equity ratio (0.72) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.41
WACC6.9%
2.3 Liquidity
1HPE has a Current Ratio of 1.01. This is a normal value and indicates that 1HPE is financially healthy and should not expect problems in meeting its short term obligations.
1HPE has a worse Current ratio (1.01) than 73.33% of its industry peers.
1HPE has a Quick Ratio of 1.01. This is a bad value and indicates that 1HPE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1HPE (0.76) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for 1HPE have decreased by -2.53% in the last year.
1HPE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
Looking at the last year, 1HPE shows a quite strong growth in Revenue. The Revenue has grown by 13.84% in the last year.
The Revenue has been growing slightly by 4.91% on average over the past years.
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
3.2 Future
The Earnings Per Share is expected to grow by 15.07% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.80, 1HPE is valued correctly.
83.33% of the companies in the same industry are more expensive than 1HPE, based on the Price/Earnings ratio.
1HPE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.77.
With a Price/Forward Earnings ratio of 10.31, the valuation of 1HPE can be described as very reasonable.
1HPE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1HPE is cheaper than 66.67% of the companies in the same industry.
1HPE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
1HPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1HPE is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1HPE is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.96 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
1HPE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1HPE's earnings are expected to grow with 16.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)1.73
EPS Next 2Y20.03%
EPS Next 3Y16.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, 1HPE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.97, 1HPE pays a better dividend. On top of this 1HPE pays more dividend than 86.67% of the companies listed in the same industry.
1HPE's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of 1HPE has a limited annual growth rate of 4.91%.
Dividend Growth(5Y)4.91%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of 1HPE are negative and hence is the payout ratio. 1HPE will probably not be able to sustain this dividend level.
The dividend of 1HPE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1349.15%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
BIT:1HPE (12/23/2025, 7:00:00 PM)
21
+0.48 (+2.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap27.71B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.32 (6.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend0.52
Dividend Growth(5Y)4.91%
DP-1349.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.29%
Min EPS beat(2)1.17%
Max EPS beat(2)5.42%
EPS beat(4)3
Avg EPS beat(4)5.16%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.21%
EPS beat(12)11
Avg EPS beat(12)5.87%
EPS beat(16)13
Avg EPS beat(16)5.01%
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)6.06%
Revenue beat(4)2
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.04%
PT rev (1m)0.92%
PT rev (3m)19.28%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)11.98%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)15.7%
Revenue NQ rev (1m)-5.72%
Revenue NQ rev (3m)14.1%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)18.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.95 | ||
| P/FCF | 51.96 | ||
| P/OCF | 11.16 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)1.64
EY7.81%
EPS(NY)2.04
Fwd EY9.7%
FCF(TTM)0.4
FCFY1.92%
OCF(TTM)1.88
OCFY8.96%
SpS22.11
BVpS15.91
TBVpS-3.51
PEG (NY)0.53
PEG (5Y)1.73
Graham Number24.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROCE | 3.21% | ||
| ROIC | 2.8% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 9.35% | ||
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% | ||
| FCFM | 1.83% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
ROICexc(3y)5.61%
ROICexc(5y)5.73%
ROICexgc(3y)14.25%
ROICexgc(5y)14.22%
ROCE(3y)5.21%
ROCE(5y)5.58%
ROICexgc growth 3Y-15.86%
ROICexgc growth 5Y-2.73%
ROICexc growth 3Y-20.88%
ROICexc growth 5Y-6.13%
OM growth 3Y-15.03%
OM growth 5Y-4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.2%
GM growth 5Y-0.73%
F-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 83.74% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.86 |
F-Score4
WACC6.9%
ROIC/WACC0.41
Cap/Depr(3y)94.72%
Cap/Depr(5y)101.28%
Cap/Sales(3y)8.08%
Cap/Sales(5y)8.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
EPS Next Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year108.98%
EBIT Next 3Y38.25%
EBIT Next 5YN/A
FCF growth 1Y-68.24%
FCF growth 3Y-24.74%
FCF growth 5YN/A
OCF growth 1Y-32.76%
OCF growth 3Y-14.02%
OCF growth 5Y5.44%
HEWLETT PACKARD ENTERPRISE / 1HPE.MI FAQ
What is the fundamental rating for 1HPE stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1HPE.MI.
Can you provide the valuation status for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a valuation rating of 6 / 10 to HEWLETT PACKARD ENTERPRISE (1HPE.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for HEWLETT PACKARD ENTERPRISE?
HEWLETT PACKARD ENTERPRISE (1HPE.MI) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for 1HPE stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 12.8 and the Price/Book (PB) ratio is 1.32.
Can you provide the dividend sustainability for 1HPE stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 4 / 10 and the dividend payout ratio is -1349.15%.