HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
18.362 EUR
-1.65 (-8.26%)
Overall 2HP gets a fundamental rating of 4 out of 10. We evaluated 2HP against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. 2HP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 2HP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
2HP had positive earnings in the past year.
2HP had a positive operating cash flow in the past year.
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 has a Return On Assets (1.47%) which is comparable to the rest of the industry.
2HP has a Return On Equity of 4.66%. This is in the better half of the industry: 2HP outperforms 66.67% of its industry peers.
The Return On Invested Capital of 2HP (2.77%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 17.89%.
| 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
The Profit Margin of 2HP (3.43%) is comparable to the rest of the industry.
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 63.33% of its industry peers.
2HP's Operating Margin has been stable in the last couple of years.
2HP has a Gross Margin of 29.45%. This is comparable to the rest of the industry: 2HP outperforms 56.67% 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
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.
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 0.79, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
2HP has a Altman-Z score (0.79) 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.
The Debt to FCF ratio of 2HP (105.12) is worse than 73.33% of its industry peers.
2HP has a Debt/Equity ratio of 0.76. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
The Debt to Equity ratio of 2HP (0.76) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.4
WACC6.87%
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.
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.
2HP has a worse Quick ratio (0.69) than 76.67% 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%.
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
2HP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
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.
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 11.33, the valuation of 2HP can be described as reasonable.
Based on the Price/Earnings ratio, 2HP is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.56. 2HP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.86, the valuation of 2HP can be described as reasonable.
76.67% of the companies in the same industry are more expensive than 2HP, based on the Price/Forward Earnings ratio.
2HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2HP indicates a slightly more expensive valuation: 2HP is more expensive than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.42 | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.27
EPS Next 2Y10.41%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, 2HP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, 2HP pays a better dividend. On top of this 2HP pays more dividend than 86.67% of the companies listed in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 (11/17/2025, 7:00:00 PM)
18.362
-1.65 (-8.26%)
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 Cap24.23B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts75.38
Price Target22.69 (23.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)2.46%
PT rev (3m)13.84%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)7.28%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.86 | ||
| P/S | 0.85 | ||
| P/FCF | 125.42 | ||
| P/OCF | 11.36 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.63 |
EPS(TTM)1.62
EY8.82%
EPS(NY)2.07
Fwd EY11.28%
FCF(TTM)0.15
FCFY0.8%
OCF(TTM)1.62
OCFY8.8%
SpS21.52
BVpS15.88
TBVpS-3.91
PEG (NY)N/A
PEG (5Y)5.27
Graham Number24.06
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 | 0.79 |
F-Score4
WACC6.87%
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%.