HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2HP - US42824C1099 - Common Stock
20.575 EUR
-0.09 (-0.41%)
2HP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of 2HP have multiple concerns. 2HP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 2HP was profitable.
In the past year 2HP had a positive cash flow from operations.
2HP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 2HP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 2HP (-0.08%) is worse than 60.00% of its industry peers.
2HP has a Return On Equity (-0.24%) which is in line with its industry peers.
2HP has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
2HP 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
2HP has a Operating Margin of 4.79%. This is comparable to the rest of the industry: 2HP outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of 2HP has declined.
2HP's Gross Margin of 30.26% is in line compared to the rest of the industry. 2HP outperforms 53.33% of its industry peers.
2HP'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2HP is destroying value.
The number of shares outstanding for 2HP has been increased compared to 1 year ago.
Compared to 5 years ago, 2HP has more shares outstanding
Compared to 1 year ago, 2HP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
2HP has a Altman-Z score of 0.85. This is in the lower half of the industry: 2HP underperforms 66.67% of its industry peers.
2HP has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as 2HP would need 35.67 years to pay back of all of its debts.
2HP has a Debt to FCF ratio of 35.67. This is in the lower half of the industry: 2HP underperforms 66.67% of its industry peers.
2HP has a Debt/Equity ratio of 0.72. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, 2HP is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.41
WACC6.91%
2.3 Liquidity
2HP has a Current Ratio of 1.01. This is a normal value and indicates that 2HP is financially healthy and should not expect problems in meeting its short term obligations.
2HP's Current ratio of 1.01 is on the low side compared to the rest of the industry. 2HP is outperformed by 70.00% of its industry peers.
2HP has a Quick Ratio of 1.01. This is a bad value and indicates that 2HP is not financially healthy enough and could expect problems in meeting its short term obligations.
2HP's Quick ratio of 0.76 is on the low side compared to the rest of the industry. 2HP is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
2HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.53%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.84%.
Measured over the past years, 2HP shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
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
The Earnings Per Share is expected to grow by 15.07% on average over the next years. This is quite good.
Based on estimates for the next years, 2HP 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 12.55 indicates a correct valuation of 2HP.
Compared to the rest of the industry, the Price/Earnings ratio of 2HP indicates a rather cheap valuation: 2HP is cheaper than 86.67% of the companies listed in the same industry.
2HP is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.12 indicates a reasonable valuation of 2HP.
Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than 70.00% of the companies in the same industry.
2HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
2HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 70.00% of the companies in the same industry.
2HP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.87 | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
2HP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
2HP's earnings are expected to grow with 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)1.69
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.33%.
2HP's Dividend Yield is rather good when compared to the industry average which is at 0.97. 2HP pays more dividend than 83.33% of the companies in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of 2HP has a limited annual growth rate of 4.91%.
Dividend Growth(5Y)4.91%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
2HP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
2HP'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%
FRA:2HP (12/30/2025, 7:00:00 PM)
20.575
-0.09 (-0.41%)
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 Cap27.15B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.62 (9.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend0.52
Dividend Growth(5Y)4.91%
DP-1349.15%
Div Incr Years2
Div Non Decr Years5
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)-4.35%
PT rev (3m)3.59%
EPS NQ rev (1m)9.28%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-6%
Revenue NQ rev (3m)-6.15%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 10.12 | ||
| P/S | 0.93 | ||
| P/FCF | 50.87 | ||
| P/OCF | 10.93 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)1.64
EY7.97%
EPS(NY)2.03
Fwd EY9.88%
FCF(TTM)0.4
FCFY1.97%
OCF(TTM)1.88
OCFY9.15%
SpS22.12
BVpS15.92
TBVpS-3.52
PEG (NY)0.53
PEG (5Y)1.69
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 | 0.85 |
F-Score4
WACC6.91%
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 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 5Y19.53%
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 / 2HP.DE FAQ
Can you provide the ChartMill fundamental rating for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a fundamental rating of 3 / 10 to 2HP.DE.
What is the valuation status of HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to HEWLETT PACKARD ENTERPRISE (2HP.DE). This can be considered as Fairly Valued.
How profitable is HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
HEWLETT PACKARD ENTERPRISE (2HP.DE) has a profitability rating of 3 / 10.
What is the valuation of HEWLETT PACKARD ENTERPRISE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (2HP.DE) is 12.55 and the Price/Book (PB) ratio is 1.29.
What is the earnings growth outlook for HEWLETT PACKARD ENTERPRISE?
The Earnings per Share (EPS) of HEWLETT PACKARD ENTERPRISE (2HP.DE) is expected to grow by 23.77% in the next year.