HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - BIT:1HPE - US42824C1099 - Common Stock
11.17 EUR
-3.21 (-22.34%)
Taking everything into account, 1HPE scores 5 out of 10 in our fundamental rating. 1HPE was compared to 27 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of 1HPE while its profitability can be described as average. 1HPE may be a bit undervalued, certainly considering the very reasonable score on growth 1HPE also has an excellent dividend rating.
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.
Of the past 5 years 1HPE 4 years were profitable.
In the past 5 years 1HPE always reported a positive cash flow from operatings.
1.2 Ratios
1HPE's Return On Assets of 3.93% is fine compared to the rest of the industry. 1HPE outperforms 67.74% of its industry peers.
Looking at the Return On Equity, with a value of 10.96%, 1HPE belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
With a Return On Invested Capital value of 4.66%, 1HPE perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
1HPE had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 16.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 10.96% | ||
| ROIC | 4.66% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)5.52%
ROIC(5y)5.09%
1.3 Margins
With an excellent Profit Margin value of 8.85%, 1HPE belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
In the last couple of years the Profit Margin of 1HPE has grown nicely.
1HPE has a better Operating Margin (7.75%) than 83.87% of its industry peers.
In the last couple of years the Operating Margin of 1HPE has remained more or less at the same level.
The Gross Margin of 1HPE (31.12%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1HPE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.75% | ||
| PM (TTM) | 8.85% | ||
| GM | 31.12% |
OM growth 3Y2.85%
OM growth 5Y-0.53%
PM growth 3Y-11.75%
PM growth 5Y18.68%
GM growth 3Y-0.96%
GM growth 5Y0.13%
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.
Compared to 1 year ago, 1HPE has more shares outstanding
Compared to 5 years ago, 1HPE has more shares outstanding
Compared to 1 year ago, 1HPE has a worse debt to assets ratio.
2.2 Solvency
1HPE has an Altman-Z score of 0.88. This is a bad value and indicates that 1HPE is not financially healthy and even has some risk of bankruptcy.
1HPE has a worse Altman-Z score (0.88) than 61.29% of its industry peers.
1HPE has a debt to FCF ratio of 10.85. This is a negative value and a sign of low solvency as 1HPE would need 10.85 years to pay back of all of its debts.
1HPE has a Debt to FCF ratio of 10.85. This is in the better half of the industry: 1HPE outperforms 64.52% of its industry peers.
1HPE has a Debt/Equity ratio of 0.56. This is a neutral value indicating 1HPE is somewhat dependend on debt financing.
The Debt to Equity ratio of 1HPE (0.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 10.85 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.68
WACC6.83%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 1HPE should not have too much problems paying its short term obligations.
1HPE's Current ratio of 1.33 is in line compared to the rest of the industry. 1HPE outperforms 51.61% of its industry peers.
A Quick Ratio of 0.98 indicates that 1HPE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, 1HPE is in line with its industry, outperforming 54.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for 1HPE have decreased by -1.00% in the last year.
1HPE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.15% yearly.
The Revenue has grown by 11.20% in the past year. This is quite good.
1HPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.67% yearly.
EPS 1Y (TTM)-1%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%2.08%
Revenue 1Y (TTM)11.2%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%16.27%
3.2 Future
Based on estimates for the next years, 1HPE will show a small growth in Earnings Per Share. The EPS will grow by 3.87% on average per year.
1HPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
EPS Next Y-8.64%
EPS Next 2Y2.23%
EPS Next 3Y6.25%
EPS Next 5Y3.87%
Revenue Next Year8.33%
Revenue Next 2Y6.98%
Revenue Next 3Y5.93%
Revenue Next 5Y5.51%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.38, the valuation of 1HPE can be described as very cheap.
1HPE's Price/Earnings ratio is rather cheap when compared to the industry. 1HPE is cheaper than 96.77% of the companies in the same industry.
1HPE is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.13 indicates a rather cheap valuation of 1HPE.
1HPE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1HPE is cheaper than 83.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, 1HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPE is valued cheaper than 83.87% of the companies in the same industry.
70.97% of the companies in the same industry are more expensive than 1HPE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| EV/EBITDA | 4.12 |
4.3 Compensation for Growth
1HPE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.97
EPS Next 2Y2.23%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, 1HPE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.10, 1HPE pays a better dividend. On top of this 1HPE pays more dividend than 80.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1HPE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of 1HPE has a limited annual growth rate of 3.20%.
Dividend Growth(5Y)3.2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.42% of the earnings are spent on dividend by 1HPE. This is a low number and sustainable payout ratio.
1HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.42%
EPS Next 2Y2.23%
EPS Next 3Y6.25%
BIT:1HPE (4/9/2025, 7:00:00 PM)
11.17
-3.21 (-22.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.61%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap14.67B
Analysts75.79
Price Target18.71 (67.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.46
Dividend Growth(5Y)3.2%
DP25.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-1.9%
Max EPS beat(2)2.93%
EPS beat(4)3
Avg EPS beat(4)3.44%
Min EPS beat(4)-1.9%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)3.94%
EPS beat(12)9
Avg EPS beat(12)3.64%
EPS beat(16)13
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)4.54%
Revenue beat(8)2
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-0.22%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)-22.9%
PT rev (3m)-12.28%
EPS NQ rev (1m)-35.74%
EPS NQ rev (3m)-35.34%
EPS NY rev (1m)-16.02%
EPS NY rev (3m)-15.1%
Revenue NQ rev (1m)-5.74%
Revenue NQ rev (3m)-4.95%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 6.13 | ||
| P/S | 0.53 | ||
| P/FCF | 10.11 | ||
| P/OCF | 4.29 | ||
| P/B | 0.66 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 4.12 |
EPS(TTM)1.75
EY15.67%
EPS(NY)1.82
Fwd EY16.31%
FCF(TTM)1.1
FCFY9.89%
OCF(TTM)2.6
OCFY23.32%
SpS20.93
BVpS16.9
TBVpS4.44
PEG (NY)N/A
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 10.96% | ||
| ROCE | 5.33% | ||
| ROIC | 4.66% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 15.19% | ||
| OM | 7.75% | ||
| PM (TTM) | 8.85% | ||
| GM | 31.12% | ||
| FCFM | 5.28% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)5.52%
ROIC(5y)5.09%
ROICexc(3y)6.82%
ROICexc(5y)6.08%
ROICexgc(3y)16.7%
ROICexgc(5y)14.78%
ROCE(3y)6.33%
ROCE(5y)5.84%
ROICexcg growth 3Y10.99%
ROICexcg growth 5Y-3.59%
ROICexc growth 3Y8.67%
ROICexc growth 5Y-0.74%
OM growth 3Y2.85%
OM growth 5Y-0.53%
PM growth 3Y-11.75%
PM growth 5Y18.68%
GM growth 3Y-0.96%
GM growth 5Y0.13%
F-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 10.85 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 89.35% | ||
| Cap/Sales | 7.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 59.6% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.88 |
F-Score5
WACC6.83%
ROIC/WACC0.68
Cap/Depr(3y)108.77%
Cap/Depr(5y)102.69%
Cap/Sales(3y)9.51%
Cap/Sales(5y)9.27%
Profit Quality(3y)108.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%2.08%
EPS Next Y-8.64%
EPS Next 2Y2.23%
EPS Next 3Y6.25%
EPS Next 5Y3.87%
Revenue 1Y (TTM)11.2%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%16.27%
Revenue Next Year8.33%
Revenue Next 2Y6.98%
Revenue Next 3Y5.93%
Revenue Next 5Y5.51%
EBIT growth 1Y4.09%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year72.32%
EBIT Next 3Y28.53%
EBIT Next 5Y23.39%
FCF growth 1Y200.73%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y1.22%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%