HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2HP - US42824C1099 - Common Stock
17.728 EUR
-0.24 (-1.31%)
Taking everything into account, 2HP scores 4 out of 10 in our fundamental rating. 2HP was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of 2HP while its profitability can be described as average. 2HP is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years 2HP 4 years were profitable.
2HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2HP's Return On Assets of 1.47% is in line compared to the rest of the industry. 2HP outperforms 48.39% of its industry peers.
2HP's Return On Equity of 4.66% is fine compared to the rest of the industry. 2HP outperforms 67.74% of its industry peers.
2HP has a Return On Invested Capital (2.77%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2HP is significantly below the industry average of 17.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROIC | 2.77% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)4.36%
ROIC(5y)4.02%
1.3 Margins
2HP has a Profit Margin (3.43%) which is comparable to the rest of the industry.
2HP's Profit Margin has improved in the last couple of years.
2HP has a Operating Margin of 6.15%. This is in the better half of the industry: 2HP outperforms 64.52% of its industry peers.
In the last couple of years the Operating Margin of 2HP has remained more or less at the same level.
2HP has a Gross Margin (29.45%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 2HP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 2HP is destroying value.
2HP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 2HP has been increased compared to 5 years ago.
Compared to 1 year ago, 2HP has a worse debt to assets ratio.
2.2 Solvency
2HP has an Altman-Z score of 0.75. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
2HP has a Altman-Z score (0.75) which is comparable to the rest of the industry.
2HP has a debt to FCF ratio of 105.12. This is a negative value and a sign of low solvency as 2HP would need 105.12 years to pay back of all of its debts.
2HP has a worse Debt to FCF ratio (105.12) than 70.97% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
2HP's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. 2HP is outperformed by 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.42
WACC6.67%
2.3 Liquidity
2HP has a Current Ratio of 0.95. This is a bad value and indicates that 2HP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, 2HP is doing worse than 67.74% of the companies in the same industry.
2HP has a Quick Ratio of 0.95. 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 has a Quick ratio of 0.69. This is in the lower half of the industry: 2HP underperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for 2HP have decreased by -1.56% in the last year.
The Earnings Per Share has been growing slightly by 2.15% on average over the past years.
2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.97%.
2HP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.67% yearly.
EPS 1Y (TTM)-1.56%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-12%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
3.2 Future
Based on estimates for the next years, 2HP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
EPS Next Y-3.18%
EPS Next 2Y10.41%
EPS Next 3Y11.54%
EPS Next 5Y11.31%
Revenue Next Year15.45%
Revenue Next 2Y16.61%
Revenue Next 3Y12.71%
Revenue Next 5Y9.51%
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
2HP is valuated reasonably with a Price/Earnings ratio of 10.81.
83.87% of the companies in the same industry are more expensive than 2HP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.47. 2HP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.46, the valuation of 2HP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than 77.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (34.42), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 8.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than 74.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 2HP is valued a bit more expensive than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.76 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.02
EPS Next 2Y10.41%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.60%.
2HP's Dividend Yield is rather good when compared to the industry average which is at 2.34. 2HP pays more dividend than 87.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 2HP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of 2HP has a limited annual growth rate of 3.20%.
Dividend Growth(5Y)3.2%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
67.34% of the earnings are spent on dividend by 2HP. This is not a sustainable payout ratio.
The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.34%
EPS Next 2Y10.41%
EPS Next 3Y11.54%
FRA:2HP (11/21/2025, 7:00:00 PM)
17.728
-0.24 (-1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner ChangeN/A
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap23.39B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts75.38
Price Target23.65 (33.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend0.45
Dividend Growth(5Y)3.2%
DP67.34%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.57%
Min EPS beat(2)1.17%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)4.54%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)4.78%
EPS beat(12)11
Avg EPS beat(12)5.45%
EPS beat(16)13
Avg EPS beat(16)5.08%
Revenue beat(2)2
Avg Revenue beat(2)3.74%
Min Revenue beat(2)1.42%
Max Revenue beat(2)6.06%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)6.81%
PT rev (3m)16.06%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)0.07%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 8.46 | ||
| P/S | 0.81 | ||
| P/FCF | 119.76 | ||
| P/OCF | 10.85 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)1.64
EY9.25%
EPS(NY)2.1
Fwd EY11.82%
FCF(TTM)0.15
FCFY0.83%
OCF(TTM)1.63
OCFY9.22%
SpS21.76
BVpS16.05
TBVpS-3.95
PEG (NY)N/A
PEG (5Y)5.02
Graham Number24.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROCE | 4.07% | ||
| ROIC | 2.77% | ||
| ROICexc | 3.04% | ||
| ROICexgc | 8.54% | ||
| OM | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% | ||
| FCFM | 0.68% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)4.36%
ROIC(5y)4.02%
ROICexc(3y)5.39%
ROICexc(5y)4.81%
ROICexgc(3y)13.2%
ROICexgc(5y)11.68%
ROCE(3y)6.33%
ROCE(5y)5.84%
ROICexgc growth 3Y10.99%
ROICexgc 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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 90.36% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.77% | ||
| Profit Quality | 19.81% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.75 |
F-Score4
WACC6.67%
ROIC/WACC0.42
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)-1.56%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-12%
EPS Next Y-3.18%
EPS Next 2Y10.41%
EPS Next 3Y11.54%
EPS Next 5Y11.31%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.45%
Revenue Next 2Y16.61%
Revenue Next 3Y12.71%
Revenue Next 5Y9.51%
EBIT growth 1Y-10.43%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year79.02%
EBIT Next 3Y33.97%
EBIT Next 5Y17.11%
FCF growth 1Y-84.67%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-46.25%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%
HEWLETT PACKARD ENTERPRISE / 2HP.DE FAQ
Can you provide the ChartMill fundamental rating for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a fundamental rating of 4 / 10 to 2HP.DE.
Can you provide the valuation status for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a valuation rating of 5 / 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 5 / 10.
What is the expected EPS growth for HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
The Earnings per Share (EPS) of HEWLETT PACKARD ENTERPRISE (2HP.DE) is expected to decline by -3.18% in the next year.
How sustainable is the dividend of HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (2HP.DE) is 5 / 10 and the dividend payout ratio is 67.34%.