HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPE - US42824C1099 - Common Stock
21 EUR
+0.48 (+2.34%)
Overall 1HPE gets a fundamental rating of 3 out of 10. We evaluated 1HPE against 30 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 is not valued too expensively and it also shows a decent 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
Looking at the Return On Assets, with a value of -0.08%, 1HPE is doing worse than 63.33% of the companies in the same industry.
With a Return On Equity value of -0.24%, 1HPE perfoms like the industry average, outperforming 46.67% of the companies in the same 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.
1HPE had an Average Return On Invested Capital over the past 3 years of 4.48%. This is significantly below the industry average of 15.69%.
| 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
The Operating Margin of 1HPE (4.79%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1HPE has declined.
Looking at the Gross Margin, with a value of 30.26%, 1HPE is in line with its industry, outperforming 50.00% of the companies in the same industry.
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
1HPE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1HPE has more shares outstanding than it did 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.
1HPE has a worse Altman-Z score (0.86) than 63.33% of its industry peers.
1HPE has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as 1HPE would need 35.67 years to pay back of all of its debts.
1HPE has a Debt to FCF ratio of 35.67. This is in the lower half of the industry: 1HPE underperforms 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.
The Debt to Equity ratio of 1HPE (0.72) is worse than 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
A Current Ratio of 1.01 indicates that 1HPE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.01, 1HPE is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that 1HPE may have some problems paying its short term obligations.
1HPE has a Quick ratio of 0.76. This is in the lower half of the industry: 1HPE underperforms 76.67% 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%.
1HPE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
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 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
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
1HPE is valuated correctly with a Price/Earnings ratio of 12.80.
Compared to the rest of the industry, the Price/Earnings ratio of 1HPE indicates a rather cheap valuation: 1HPE is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. 1HPE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.31, the valuation of 1HPE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1HPE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.13. 1HPE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPE is valued a bit cheaper than 66.67% of the companies in the same industry.
1HPE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1HPE is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.93 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
1HPE's 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)1.73
EPS Next 2Y20.03%
EPS Next 3Y16.44%
5. Dividend
5.1 Amount
1HPE has a Yearly Dividend Yield of 2.38%. 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 0.97. 1HPE pays more dividend than 86.67% 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
+0.48 (+2.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
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 | 12.8 | ||
| Fwd PE | 10.31 | ||
| 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)2.04
Fwd EY9.7%
FCF(TTM)0.4
FCFY1.93%
OCF(TTM)1.88
OCFY8.97%
SpS22.12
BVpS15.92
TBVpS-3.52
PEG (NY)0.53
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 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.
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%.