HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
20.38 EUR
-0.11 (-0.54%)
Taking everything into account, 2HP scores 3 out of 10 in our fundamental rating. 2HP was compared to 29 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 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.
Of the past 5 years 2HP 4 years were profitable.
Each year in the past 5 years 2HP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.47%, 2HP perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.66%, 2HP is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
With a Return On Invested Capital value of 2.77%, 2HP perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2HP is significantly below the industry average of 18.98%.
| 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's Profit Margin of 3.43% is in line compared to the rest of the industry. 2HP outperforms 51.72% of its industry peers.
2HP's Profit Margin has improved in the last couple of years.
2HP's Operating Margin of 6.15% is fine compared to the rest of the industry. 2HP outperforms 65.52% 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 comparable to the rest of the industry.
2HP's Gross Margin has been stable in the last couple of years.
| 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
2HP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 2HP has more shares outstanding
2HP has more shares outstanding than it did 5 years ago.
2HP has a worse debt/assets ratio than last year.
2.2 Solvency
2HP has an Altman-Z score of 0.78. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
2HP's Altman-Z score of 0.78 is in line compared to the rest of the industry. 2HP outperforms 44.83% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 105.12, 2HP is doing worse than 68.97% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, 2HP is doing worse than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.4
WACC6.84%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 2HP may have some problems paying its short term obligations.
2HP has a worse Current ratio (0.95) than 68.97% of its industry peers.
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 worse Quick ratio (0.69) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
2HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.56%.
2HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.15% yearly.
2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.97%.
The Revenue has been growing slightly by 0.67% on average over the past years.
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
The Price/Earnings ratio is 12.50, which indicates a correct valuation of 2HP.
Based on the Price/Earnings ratio, 2HP is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
2HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 9.77, the valuation of 2HP can be described as reasonable.
75.86% of the companies in the same industry are more expensive than 2HP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (34.43), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
68.97% of the companies in the same industry are cheaper than 2HP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 138.34 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.81
EPS Next 2Y10.41%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.07, 2HP pays a better dividend. On top of this 2HP pays more dividend than 86.21% of the companies listed in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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
2HP pays out 67.34% of its income as dividend. 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 (11/12/2025, 7:00:00 PM)
20.38
-0.11 (-0.54%)
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 Cap26.89B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts75.38
Price Target22.98 (12.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)3.81%
PT rev (3m)15.34%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.77 | ||
| P/S | 0.94 | ||
| P/FCF | 138.34 | ||
| P/OCF | 12.53 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)1.63
EY8%
EPS(NY)2.09
Fwd EY10.23%
FCF(TTM)0.15
FCFY0.72%
OCF(TTM)1.63
OCFY7.98%
SpS21.66
BVpS15.98
TBVpS-3.93
PEG (NY)N/A
PEG (5Y)5.81
Graham Number24.21
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 | 0.78 |
F-Score4
WACC6.84%
ROIC/WACC0.4
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 3 / 10 to 2HP.DE.
Can you provide the valuation status for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a valuation rating of 4 / 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%.