HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - BIT:1HPE - US42824C1099 - Common Stock
20.585 EUR
+9.42 (+84.29%)
1HPE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate. 1HPE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1HPE was profitable.
1HPE had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.47%, 1HPE perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
1HPE has a better Return On Equity (4.66%) than 67.86% of its industry peers.
1HPE has a Return On Invested Capital (3.50%) which is in line with its industry peers.
1HPE had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 17.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROIC | 3.5% |
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
The Profit Margin of 1HPE (3.43%) is comparable to the rest of the industry.
1HPE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.15%, 1HPE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
1HPE's Operating Margin has been stable in the last couple of years.
1HPE has a Gross Margin (29.45%) which is in line with 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 | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1HPE is destroying value.
Compared to 1 year ago, 1HPE has more shares outstanding
Compared to 5 years ago, 1HPE has more shares outstanding
The debt/assets ratio for 1HPE is higher compared to a year ago.
2.2 Solvency
1HPE has an Altman-Z score of 0.80. 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 (0.80) than 60.71% of its industry peers.
The Debt to FCF ratio of 1HPE is 105.12, which is on the high side as it means it would take 1HPE, 105.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 105.12, 1HPE is in line with its industry, outperforming 42.86% of the companies in the same industry.
1HPE has a Debt/Equity ratio of 0.76. This is a neutral value indicating 1HPE is somewhat dependend on debt financing.
The Debt to Equity ratio of 1HPE (0.76) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.48
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 1HPE may have some problems paying its short term obligations.
1HPE has a worse Current ratio (0.95) than 64.29% of its industry peers.
A Quick Ratio of 0.69 indicates that 1HPE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, 1HPE is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
1HPE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.56%.
Measured over the past 5 years, 1HPE shows a small growth in Earnings Per Share. The EPS has been growing by 2.15% on average per year.
Looking at the last year, 1HPE shows a quite strong growth in Revenue. The Revenue has grown by 13.97% in the last year.
1HPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.67% yearly.
EPS 1Y (TTM)-1.56%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-12%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
3.2 Future
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.76% on average over the next years. This is quite good.
EPS Next Y-3.14%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
EPS Next 5Y10.57%
Revenue Next Year15.38%
Revenue Next 2Y16.2%
Revenue Next 3Y11.6%
Revenue Next 5Y9.76%
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 12.79, 1HPE is valued correctly.
Based on the Price/Earnings ratio, 1HPE is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
1HPE is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.05 indicates a reasonable valuation of 1HPE.
Based on the Price/Forward Earnings ratio, 1HPE is valued a bit cheaper than 78.57% 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 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HPE indicates a somewhat cheap valuation: 1HPE is cheaper than 67.86% of the companies listed in the same industry.
1HPE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 141.65 | ||
| EV/EBITDA | 10.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.94
EPS Next 2Y10.15%
EPS Next 3Y10.54%
5. Dividend
5.1 Amount
1HPE has a Yearly Dividend Yield of 5.61%, which is a nice return.
Compared to an average industry Dividend Yield of 2.15, 1HPE pays a better dividend. On top of this 1HPE pays more dividend than 96.43% of the companies listed in the same industry.
1HPE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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 67.34% of its income as dividend. This is not a sustainable payout ratio.
1HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.34%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
BIT:1HPE (9/25/2025, 7:00:00 PM)
20.585
+9.42 (+84.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner ChangeN/A
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap27.16B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts76
Price Target22.12 (7.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.45
Dividend Growth(5Y)3.2%
DP67.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.57%
Min EPS beat(2)1.17%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)4.54%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)4.78%
EPS beat(12)11
Avg EPS beat(12)5.45%
EPS beat(16)13
Avg EPS beat(16)5.08%
Revenue beat(2)2
Avg Revenue beat(2)3.74%
Min Revenue beat(2)1.42%
Max Revenue beat(2)6.06%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)18.2%
PT rev (3m)18.2%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)6.03%
EPS NY rev (3m)6.03%
Revenue NQ rev (1m)15%
Revenue NQ rev (3m)15%
Revenue NY rev (1m)6.51%
Revenue NY rev (3m)6.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.96 | ||
| P/FCF | 141.65 | ||
| P/OCF | 12.83 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.85 |
EPS(TTM)1.61
EY7.82%
EPS(NY)2.05
Fwd EY9.95%
FCF(TTM)0.15
FCFY0.71%
OCF(TTM)1.6
OCFY7.79%
SpS21.36
BVpS15.76
TBVpS-3.88
PEG (NY)N/A
PEG (5Y)5.94
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROCE | 4.07% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 10.81% | ||
| OM | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% | ||
| FCFM | 0.68% |
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%
ROICexgc growth 3Y10.99%
ROICexgc 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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 90.36% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.77% | ||
| Profit Quality | 19.81% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.8 |
F-Score4
WACC7.23%
ROIC/WACC0.48
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)-1.56%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-12%
EPS Next Y-3.14%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
EPS Next 5Y10.57%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.38%
Revenue Next 2Y16.2%
Revenue Next 3Y11.6%
Revenue Next 5Y9.76%
EBIT growth 1Y-10.43%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year79.02%
EBIT Next 3Y33.97%
EBIT Next 5Y23.39%
FCF growth 1Y-84.67%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-46.25%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%
HEWLETT PACKARD ENTERPRISE / 1HPE.MI FAQ
What is the fundamental rating for 1HPE stock?
ChartMill assigns a fundamental rating of 5 / 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 6 / 10.
Can you provide the PE and PB ratios for 1HPE stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 12.79 and the Price/Book (PB) ratio is 1.31.
Can you provide the dividend sustainability for 1HPE stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 7 / 10 and the dividend payout ratio is 67.34%.