HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
BIT:1HPE - Borsa Italiana Milan - US42824C1099 - Common Stock - Currency: EUR
Overall 1HPE gets a fundamental rating of 4 out of 10. We evaluated 1HPE against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPE is still in line with the averages on profitability rating, there are concerns on its financial health. 1HPE is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years 1HPE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1HPE (3.58%) is comparable to the rest of the industry.
1HPE's Return On Equity of 10.29% is fine compared to the rest of the industry. 1HPE outperforms 74.07% of its industry peers.
1HPE's Return On Invested Capital of 4.82% is in line compared to the rest of the industry. 1HPE outperforms 55.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HPE is significantly below the industry average of 16.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 10.29% | ||
| ROIC | 4.82% |
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
Looking at the Profit Margin, with a value of 8.48%, 1HPE is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
1HPE's Profit Margin has improved in the last couple of years.
1HPE has a Operating Margin of 8.28%. This is in the better half of the industry: 1HPE outperforms 70.37% of its industry peers.
In the last couple of years the Operating Margin of 1HPE has remained more or less at the same level.
1HPE's Gross Margin of 32.79% is fine compared to the rest of the industry. 1HPE outperforms 62.96% of its industry peers.
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 | 8.28% | ||
| PM (TTM) | 8.48% | ||
| GM | 32.79% |
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
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
1HPE has more shares outstanding than it did 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 0.99, we must say that 1HPE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, 1HPE is doing worse than 66.67% of the companies in the same industry.
1HPE has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as 1HPE would need 9.24 years to pay back of all of its debts.
The Debt to FCF ratio of 1HPE (9.24) is comparable to the rest of the industry.
1HPE has a Debt/Equity ratio of 0.58. This is a neutral value indicating 1HPE is somewhat dependend on debt financing.
1HPE has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: 1HPE outperforms 48.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.44
WACC10.87%
2.3 Liquidity
1HPE has a Current Ratio of 1.29. 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 Current ratio of 1.29. This is comparable to the rest of the industry: 1HPE outperforms 44.44% of its industry peers.
A Quick Ratio of 0.99 indicates that 1HPE may have some problems paying its short term obligations.
1HPE's Quick ratio of 0.99 is in line compared to the rest of the industry. 1HPE outperforms 48.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
1HPE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.33%.
The Earnings Per Share has been growing slightly by 2.15% on average over the past years.
The Revenue has been growing slightly by 3.40% in the past year.
The Revenue has been growing slightly by 0.67% on average over the past years.
EPS 1Y (TTM)-8.33%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%11.54%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%15.06%
3.2 Future
1HPE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.98% yearly.
1HPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y8.78%
EPS Next 2Y7.94%
EPS Next 3Y6.54%
EPS Next 5Y2.98%
Revenue Next Year8.79%
Revenue Next 2Y6.8%
Revenue Next 3Y5.55%
Revenue Next 5Y5.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 10.91, which indicates a very decent valuation of 1HPE.
1HPE's Price/Earnings ratio is a bit cheaper when compared to the industry. 1HPE is cheaper than 74.07% of the companies in the same industry.
1HPE is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.05, the valuation of 1HPE can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HPE is on the same level as its industry peers.
1HPE is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
70.37% of the companies in the same industry are more expensive than 1HPE, based on the Enterprise Value to EBITDA ratio.
1HPE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1HPE is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1HPE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)5.07
EPS Next 2Y7.94%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
1HPE has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.05, 1HPE pays a better dividend. On top of this 1HPE pays more dividend than 85.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 1HPE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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
1HPE pays out 26.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1HPE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.47%
EPS Next 2Y7.94%
EPS Next 3Y6.54%
HEWLETT PACKARD ENTERPRISE
BIT:1HPE (1/30/2025, 7:00:00 PM)
20.955
-2.26 (-9.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap27.56B
Analysts78.18
Price Target24.27 (15.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend0.52
Dividend Growth(5Y)3.2%
DP26.47%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)2.93%
Max EPS beat(2)5.8%
EPS beat(4)4
Avg EPS beat(4)5.25%
Min EPS beat(4)2.93%
Max EPS beat(4)6.92%
EPS beat(8)8
Avg EPS beat(8)6.23%
EPS beat(12)10
Avg EPS beat(12)4.96%
EPS beat(16)14
Avg EPS beat(16)6.81%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-5.97%
Max Revenue beat(4)4.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.49%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.37%
PT rev (1m)13.78%
PT rev (3m)23.41%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)1.09%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)3.71%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.95 | ||
| P/FCF | 14.43 | ||
| P/OCF | 6.56 | ||
| P/B | 1.15 | ||
| P/tB | 4.58 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)1.92
EY9.16%
EPS(NY)2.08
Fwd EY9.95%
FCF(TTM)1.45
FCFY6.93%
OCF(TTM)3.19
OCFY15.24%
SpS22.16
BVpS18.26
TBVpS4.58
PEG (NY)1.24
PEG (5Y)5.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 10.29% | ||
| ROCE | 5.51% | ||
| ROIC | 4.82% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 17.6% | ||
| OM | 8.28% | ||
| PM (TTM) | 8.48% | ||
| GM | 32.79% | ||
| FCFM | 6.55% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.24 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 92.32% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.23 | ||
| Cash Conversion | 85.82% | ||
| Profit Quality | 77.29% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 0.99 |
F-Score5
WACC10.87%
ROIC/WACC0.44
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)-8.33%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%11.54%
EPS Next Y8.78%
EPS Next 2Y7.94%
EPS Next 3Y6.54%
EPS Next 5Y2.98%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%15.06%
Revenue Next Year8.79%
Revenue Next 2Y6.8%
Revenue Next 3Y5.55%
Revenue Next 5Y5.43%
EBIT growth 1Y2.13%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year92.54%
EBIT Next 3Y28.01%
EBIT Next 5Y23.39%
FCF growth 1Y23.38%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-1.96%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%