HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
20.69 EUR
-0.33 (-1.57%)
Overall 2HP gets a fundamental rating of 4 out of 10. We evaluated 2HP against 27 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 correct valuation and a medium 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.
Each year in the past 5 years 2HP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.47%, 2HP is in line with its industry, outperforming 51.85% 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 62.96% of the companies in the same industry.
2HP has a Return On Invested Capital of 2.77%. This is comparable to the rest of the industry: 2HP outperforms 48.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 16.90%.
| 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 of 3.43%. This is comparable to the rest of the industry: 2HP outperforms 59.26% of its industry peers.
In the last couple of years the Profit Margin of 2HP has grown nicely.
2HP has a better Operating Margin (6.15%) than 66.67% 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's Gross Margin of 29.45% is in line compared to the rest of the industry. 2HP outperforms 51.85% of its industry peers.
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
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 0.81, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
2HP has a Altman-Z score of 0.81. This is comparable to the rest of the industry: 2HP outperforms 40.74% 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.
The Debt to FCF ratio of 2HP (105.12) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
2HP has a worse Debt to Equity ratio (0.76) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.4
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 2HP may have some problems paying its short term obligations.
The Current ratio of 2HP (0.95) is worse than 66.67% 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.
With a Quick ratio value of 0.69, 2HP is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
| 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%.
Measured over the past 5 years, 2HP shows a small growth in Earnings Per Share. The EPS has been growing by 2.15% on average per year.
The Revenue has grown by 13.97% in the past year. This is quite good.
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
2HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.81% yearly.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y-5.47%
EPS Next 2Y5.97%
EPS Next 3Y9.02%
EPS Next 5Y5.81%
Revenue Next Year15.29%
Revenue Next 2Y16.12%
Revenue Next 3Y11.6%
Revenue Next 5Y6.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 12.93, the valuation of 2HP can be described as correct.
Based on the Price/Earnings ratio, 2HP is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.20. 2HP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.99, the valuation of 2HP can be described as reasonable.
74.07% of the companies in the same industry are more expensive than 2HP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than 66.67% 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 | 143.25 | ||
| EV/EBITDA | 10.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)6.01
EPS Next 2Y5.97%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, 2HP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.10, 2HP pays a better dividend. On top of this 2HP pays more dividend than 85.19% of the companies listed in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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.
2HP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.34%
EPS Next 2Y5.97%
EPS Next 3Y9.02%
FRA:2HP (9/16/2025, 7:00:00 PM)
20.69
-0.33 (-1.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.51%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap27.30B
Analysts76.67
Price Target21.84 (5.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)9.58%
PT rev (3m)26.68%
EPS NQ rev (1m)3.93%
EPS NQ rev (3m)6.65%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)7.72%
Revenue NQ rev (3m)15.41%
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)6.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.99 | ||
| P/S | 0.97 | ||
| P/FCF | 143.25 | ||
| P/OCF | 12.98 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.93 |
EPS(TTM)1.6
EY7.73%
EPS(NY)1.88
Fwd EY9.1%
FCF(TTM)0.14
FCFY0.7%
OCF(TTM)1.59
OCFY7.71%
SpS21.23
BVpS15.66
TBVpS-3.85
PEG (NY)N/A
PEG (5Y)6.01
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%
ROICexcg growth 3Y10.99%
ROICexcg 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 | 0.81 |
F-Score4
WACC6.85%
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-5.47%
EPS Next 2Y5.97%
EPS Next 3Y9.02%
EPS Next 5Y5.81%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.29%
Revenue Next 2Y16.12%
Revenue Next 3Y11.6%
Revenue Next 5Y6.77%
EBIT growth 1Y-10.43%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year71.21%
EBIT Next 3Y29.44%
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%