HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:2HP • US42824C1099
18.262 EUR
+0.14 (+0.75%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, 2HP scores 3 out of 10 in our fundamental rating. 2HP was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of 2HP have multiple concerns. 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.
- 2HP had positive earnings in 4 of the past 5 years.
- In the past 5 years 2HP always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of -0.08%, 2HP is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of -0.24%, 2HP is in line with its industry, outperforming 51.61% of the companies in the same industry.
- 2HP has a Return On Invested Capital of 2.80%. This is comparable to the rest of the industry: 2HP outperforms 41.94% of its industry peers.
- 2HP had an Average Return On Invested Capital over the past 3 years of 4.48%. This is significantly below the industry average of 16.24%.
| 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's Operating Margin of 4.79% is in line compared to the rest of the industry. 2HP outperforms 51.61% 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 51.61% 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.
- 2HP has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for 2HP is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.81, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of 2HP (0.81) is worse than 67.74% of its industry peers.
- The Debt to FCF ratio of 2HP is 35.67, which is on the high side as it means it would take 2HP, 35.67 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 35.67, 2HP is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.72 indicates that 2HP is somewhat dependend on debt financing.
- 2HP has a worse Debt to Equity ratio (0.72) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.41
WACC6.83%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that 2HP should not have too much problems paying its short term obligations.
- The Current ratio of 2HP (1.01) is worse than 70.97% 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.
- The Quick ratio of 2HP (0.76) is worse than 74.19% 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%.
- 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
- The Earnings Per Share is expected to grow by 15.81% on average over the next years. This is quite good.
- 2HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y23.86%
EPS Next 2Y19.73%
EPS Next 3Y17.12%
EPS Next 5Y15.81%
Revenue Next Year18.19%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y7.54%
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 11.34 indicates a reasonable valuation of 2HP.
- Based on the Price/Earnings ratio, 2HP is valued a bit cheaper than 77.42% of the companies in the same industry.
- 2HP is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.14, the valuation of 2HP can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 2HP is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
- 2HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
- 67.74% of the companies in the same industry are more expensive than 2HP, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 2HP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.99 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
- The 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 17.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)1.53
EPS Next 2Y19.73%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
- 2HP has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
- 2HP's Dividend Yield is rather good when compared to the industry average which is at 0.91. 2HP pays more dividend than 87.10% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 2HP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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.
- The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1349.15%
EPS Next 2Y19.73%
EPS Next 3Y17.12%
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 11.34 and the Price/Book (PB) ratio is 1.17.
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 23.86% in the next year.