HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1HPE • US42824C1099
21 EUR
+0.48 (+2.34%)
Last: Dec 23, 2025, 07:00 PM
Taking everything into account, 1HPE scores 3 out of 10 in our fundamental rating. 1HPE was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPE has a bad profitability rating. Also its financial health evaluation is rather negative. 1HPE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1HPE was profitable.
- In the past year 1HPE had a positive cash flow from operations.
- Of the past 5 years 1HPE 4 years were profitable.
- Each year in the past 5 years 1HPE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.08%, 1HPE is doing worse than 63.33% of the companies in the same industry.
- With a Return On Equity value of -0.24%, 1HPE perfoms like the industry average, outperforming 46.67% of the companies in the same 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 17.50%.
| 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 has a Operating Margin (4.79%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1HPE has declined.
- The Gross Margin of 1HPE (30.26%) is comparable to the rest of the 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
- 1HPE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for 1HPE has been increased compared to 1 year ago.
- The number of shares outstanding for 1HPE has been increased compared to 5 years ago.
- Compared to 1 year ago, 1HPE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.86, we must say that 1HPE is in the distress zone and has some risk of bankruptcy.
- 1HPE has a worse Altman-Z score (0.86) than 63.33% of its industry peers.
- 1HPE has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as 1HPE would need 35.67 years to pay back of all of its debts.
- The Debt to FCF ratio of 1HPE (35.67) is worse than 70.00% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that 1HPE is somewhat dependend on debt financing.
- 1HPE's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. 1HPE is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.4
WACC6.94%
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's Current ratio of 1.01 is on the low side compared to the rest of the industry. 1HPE is outperformed by 73.33% of its industry peers.
- A Quick Ratio of 0.76 indicates that 1HPE may have some problems paying its short term obligations.
- 1HPE's Quick ratio of 0.76 is on the low side compared to the rest of the industry. 1HPE is outperformed by 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- 1HPE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.53%.
- 1HPE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- 1HPE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.84%.
- Measured over the past years, 1HPE shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
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.
- 1HPE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.07%
Revenue Next Year18.14%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
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
- The Price/Earnings ratio is 12.80, which indicates a correct valuation of 1HPE.
- Based on the Price/Earnings ratio, 1HPE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- 1HPE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 10.33, the valuation of 1HPE can be described as reasonable.
- 66.67% of the companies in the same industry are more expensive than 1HPE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1HPE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.33 |
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 the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.93 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
- The 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 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)1.73
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.37%, 1HPE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.92, 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 a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
- 1HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1349.15%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
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.
What is the valuation status of HEWLETT PACKARD ENTERPRISE (1HPE.MI) stock?
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.
What are the PE and PB ratios of HEWLETT PACKARD ENTERPRISE (1HPE.MI) stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 12.8 and the Price/Book (PB) ratio is 1.32.
How sustainable is the dividend of HEWLETT PACKARD ENTERPRISE (1HPE.MI) stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 4 / 10 and the dividend payout ratio is -1349.15%.