HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:2HP • US42824C1099
18.126 EUR
-0.02 (-0.13%)
Last: Jan 29, 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. 2HP may be in some trouble as it scores bad on both profitability and health. 2HP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 2HP had positive earnings in the past year.
- In the past year 2HP had a positive cash flow from operations.
- Of the past 5 years 2HP 4 years were profitable.
- In the past 5 years 2HP always reported a positive cash flow from operatings.
1.2 Ratios
- 2HP has a worse Return On Assets (-0.08%) than 61.29% of its industry peers.
- 2HP has a Return On Equity (-0.24%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 2.80%, 2HP perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 2HP 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
- The Operating Margin of 2HP (4.79%) is comparable to the rest of the industry.
- 2HP's Operating Margin has declined in the last couple of years.
- The Gross Margin of 2HP (30.26%) 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 | 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
- 2HP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for 2HP has been increased compared to 1 year ago.
- Compared to 5 years ago, 2HP has more shares outstanding
- 2HP has a worse debt/assets ratio than last year.
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 worse Altman-Z score (0.81) than 67.74% of its industry peers.
- 2HP has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as 2HP would need 35.67 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 35.67, 2HP is doing worse than 67.74% of the companies in the same industry.
- 2HP has a Debt/Equity ratio of 0.72. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.72, 2HP is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.41
WACC6.82%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that 2HP should not have too much problems paying its short term obligations.
- 2HP's Current ratio of 1.01 is on the low side compared to the rest of the industry. 2HP is outperformed by 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.
- With a Quick ratio value of 0.76, 2HP is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The earnings per share for 2HP have decreased by -2.53% in the last year.
- Measured over the past 5 years, 2HP shows a small growth in Earnings Per Share. The EPS has been growing by 7.41% on average per year.
- 2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.84%.
- 2HP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
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
- Based on estimates for the next years, 2HP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.81% on average per year.
- Based on estimates for the next years, 2HP will show a small growth in Revenue. The Revenue will grow by 7.54% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 11.26.
- Based on the Price/Earnings ratio, 2HP is valued a bit cheaper than the industry average as 77.42% 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 28.39.
- 2HP is valuated reasonably with a Price/Forward Earnings ratio of 9.07.
- 80.65% of the companies in the same industry are more expensive than 2HP, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. 2HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 9.07 |
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.
- 2HP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.65 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
- 2HP's 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)0.47
PEG (5Y)1.52
EPS Next 2Y19.73%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
- 2HP has a Yearly Dividend Yield of 2.67%. 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.
- 2HP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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.
- 2HP's earnings are growing more than its dividend. This makes the dividend growth 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 11.26 and the Price/Book (PB) ratio is 1.16.
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.