HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPE - US42824C1099 - Common Stock
21 EUR
+0.48 (+2.34%)
Taking everything into account, 1HPE scores 3 out of 10 in our fundamental rating. 1HPE was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPE may be in some trouble as it scores bad on both profitability and health. 1HPE has a correct valuation and a medium growth rate.
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
1HPE has a worse Return On Assets (-0.08%) than 63.33% of its industry peers.
The Return On Equity of 1HPE (-0.24%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.80%, 1HPE perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1HPE is significantly below the industry average of 16.68%.
| 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.
With a Gross Margin value of 30.26%, 1HPE perfoms like the industry average, 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
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.
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.
With a Altman-Z score value of 0.86, 1HPE is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
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 worse Debt to FCF ratio (35.67) than 70.00% of its industry peers.
1HPE has a Debt/Equity ratio of 0.72. This is a neutral value indicating 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.
Looking at the Current ratio, with a value of 1.01, 1HPE is doing worse than 73.33% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that 1HPE may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, 1HPE is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| 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%.
Measured over the past 5 years, 1HPE shows a small growth in Earnings Per Share. The EPS has been growing by 7.41% on average per year.
The Revenue has grown by 13.84% in the past year. This is quite good.
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
Based on estimates for the next years, 1HPE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.07% on average per year.
Based on estimates for the next years, 1HPE will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
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.
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 12.80, which indicates a correct valuation of 1HPE.
Compared to the rest of the industry, the Price/Earnings ratio of 1HPE indicates a somewhat cheap valuation: 1HPE is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1HPE to the average of the S&P500 Index (27.30), we can say 1HPE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.33 indicates a reasonable valuation of 1HPE.
66.67% of the companies in the same industry are more expensive than 1HPE, based on the Price/Forward Earnings ratio.
1HPE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than 1HPE, based on the Enterprise Value to EBITDA ratio.
60.00% of the companies in the same industry are cheaper than 1HPE, based on the Price/Free Cash Flow ratio.
| 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
1HPE has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
1HPE's Dividend Yield is rather good when compared to the industry average which is at 0.92. 1HPE pays more dividend than 86.67% of the companies in the same industry.
1HPE's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| 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
1HPE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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%
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 Owners90.03%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap27.71B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.6 (7.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)2.17%
PT rev (3m)2.17%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-6.28%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.95 | ||
| P/FCF | 51.93 | ||
| P/OCF | 11.15 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)1.64
EY7.81%
EPS(NY)2.03
Fwd EY9.68%
FCF(TTM)0.4
FCFY1.93%
OCF(TTM)1.88
OCFY8.97%
SpS22.12
BVpS15.92
TBVpS-3.52
PEG (NY)0.54
PEG (5Y)1.73
Graham Number24.24
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
WACC6.94%
ROIC/WACC0.4
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 Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.07%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year18.14%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y8.07%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year113.12%
EBIT Next 3Y37.36%
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.
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%.