HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPE - US42824C1099 - Common Stock
21 EUR
+2.24 (+11.92%)
Overall 1HPE gets a fundamental rating of 3 out of 10. We evaluated 1HPE against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of 1HPE have multiple concerns. 1HPE has a correct valuation and a medium 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.
In the past 5 years 1HPE always reported a positive cash flow from operatings.
1.2 Ratios
1HPE has a Return On Assets (-0.08%) which is in line with its industry peers.
1HPE has a Return On Equity (-0.24%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.80%, 1HPE is in line with its industry, outperforming 46.67% 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 16.24%.
| 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 60.00% of its industry peers.
1HPE's Operating Margin has declined in the last couple of years.
1HPE has a Gross Margin (30.26%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1HPE is destroying value.
1HPE has more shares outstanding than it did 1 year ago.
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
1HPE has an Altman-Z score of 0.85. 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 0.85, 1HPE is not doing good in the industry: 66.67% 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 66.67% 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 has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: 1HPE underperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.41
WACC6.9%
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 has a Current ratio of 1.01. This is in the lower half of the industry: 1HPE underperforms 70.00% of its industry peers.
1HPE has a Quick Ratio of 1.01. This is a bad value and indicates that 1HPE is not financially healthy enough and could expect problems in meeting its short term obligations.
1HPE has a Quick ratio of 0.76. This is in the lower half of the industry: 1HPE underperforms 73.33% 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%.
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.
1HPE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.84%.
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
1HPE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.07% yearly.
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 Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 12.73, the valuation of 1HPE can be described as correct.
Based on the Price/Earnings ratio, 1HPE is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1HPE to the average of the S&P500 Index (26.57), we can say 1HPE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.27 indicates a reasonable valuation of 1HPE.
70.00% of the companies in the same industry are more expensive than 1HPE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1HPE to the average of the S&P500 Index (24.04), we can say 1HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPE is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
1HPE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.76 | ||
| EV/EBITDA | 11.03 |
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.
A more expensive valuation may be justified as 1HPE's earnings are expected to grow with 16.44% in the coming years.
PEG (NY)0.53
PEG (5Y)1.72
EPS Next 2Y20.03%
EPS Next 3Y16.44%
5. Dividend
5.1 Amount
1HPE has a Yearly Dividend Yield of 2.38%.
1HPE's Dividend Yield is rather good when compared to the industry average which is at 0.86. 1HPE pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, 1HPE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 2Y20.03%
EPS Next 3Y16.44%
BIT:1HPE (12/23/2025, 7:00:00 PM)
21
+2.24 (+11.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap27.71B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.32 (6.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)0.92%
PT rev (3m)19.28%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)11.98%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)15.7%
Revenue NQ rev (1m)-5.72%
Revenue NQ rev (3m)14.1%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)18.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.95 | ||
| P/FCF | 51.76 | ||
| P/OCF | 11.12 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.03 |
EPS(TTM)1.65
EY7.86%
EPS(NY)2.04
Fwd EY9.73%
FCF(TTM)0.41
FCFY1.93%
OCF(TTM)1.89
OCFY8.99%
SpS22.19
BVpS15.98
TBVpS-3.53
PEG (NY)0.53
PEG (5Y)1.72
Graham Number24.35
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 | 0.85 |
F-Score4
WACC6.9%
ROIC/WACC0.41
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 Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year108.98%
EBIT Next 3Y38.25%
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.
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 3 / 10.
Can you provide the PE and PB ratios for 1HPE stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 12.73 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 5 / 10 and the dividend payout ratio is -1349.15%.