HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
BIT:1HPE - Euronext Milan - US42824C1099 - Common Stock - Currency: EUR
Overall 1HPE gets a fundamental rating of 5 out of 10. We evaluated 1HPE against 28 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 1HPE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1HPE was profitable.
In the past year 1HPE had a positive cash flow from operations.
Of the past 5 years 1HPE 4 years were profitable.
1HPE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1HPE has a Return On Assets of 3.93%. This is in the better half of the industry: 1HPE outperforms 67.74% of its industry peers.
1HPE's Return On Equity of 10.96% is amongst the best of the industry. 1HPE outperforms 83.87% of its industry peers.
1HPE has a Return On Invested Capital of 4.66%. This is comparable to the rest of the industry: 1HPE outperforms 58.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HPE is significantly below the industry average of 18.07%.
| 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
1HPE has a Profit Margin of 8.85%. This is amongst the best in the industry. 1HPE outperforms 87.10% of its industry peers.
1HPE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.75%, 1HPE belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
1HPE's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 31.12%, 1HPE perfoms like the industry average, outperforming 58.06% 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 | 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.
The number of shares outstanding for 1HPE has been increased compared to 1 year ago.
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.
The Altman-Z score of 1HPE (0.88) is worse than 61.29% of its industry peers.
The Debt to FCF ratio of 1HPE is 10.85, which is on the high side as it means it would take 1HPE, 10.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.85, 1HPE is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that 1HPE is somewhat dependend on debt financing.
1HPE's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. 1HPE outperforms 48.39% of its industry peers.
| 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.
With a Quick ratio value of 0.98, 1HPE perfoms like the industry average, 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
1HPE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.00%.
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.
The Revenue has grown by 11.20% in the past year. This is quite good.
Measured over the past years, 1HPE shows a small growth in Revenue. The Revenue has been growing by 0.67% on average per year.
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
The Price/Earnings ratio is 6.38, which indicates a rather cheap valuation of 1HPE.
Based on the Price/Earnings ratio, 1HPE is valued cheaper than 96.77% of the companies in the same industry.
1HPE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 6.13, the valuation of 1HPE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HPE indicates a rather cheap valuation: 1HPE is cheaper than 83.87% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1HPE to the average of the S&P500 Index (21.76), we can say 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.
Based on the Price/Free Cash Flow ratio, 1HPE is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| EV/EBITDA | 4.12 |
4.3 Compensation for Growth
The decent profitability rating of 1HPE 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
1HPE has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, 1HPE pays a better dividend. On top of this 1HPE pays more dividend than 80.65% of the companies listed in the same industry.
1HPE's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| 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
1HPE pays out 25.42% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1HPE is growing, but earnings are growing more, so the dividend growth is 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%