HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
FRA:2HP - Deutsche Boerse Ag - US42824C1099 - Common Stock - Currency: EUR
Taking everything into account, 2HP scores 4 out of 10 in our fundamental rating. 2HP was compared to 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.
In the past year 2HP had a positive cash flow from operations.
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
The Return On Assets of 2HP (2.02%) is comparable to the rest of the industry.
2HP has a Return On Equity of 5.75%. This is in the better half of the industry: 2HP outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.59%, 2HP is in line with its industry, outperforming 53.33% of the companies in the same industry.
2HP had an Average Return On Invested Capital over the past 3 years of 4.36%. This is significantly below the industry average of 16.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 5.75% | ||
| ROIC | 3.59% |
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
Looking at the Profit Margin, with a value of 4.34%, 2HP is in line with its industry, outperforming 60.00% of the companies in the same industry.
2HP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.98%, 2HP is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 2HP has remained more or less at the same level.
The Gross Margin of 2HP (30.05%) 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 | 6.98% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.05% |
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.
The number of shares outstanding for 2HP has been increased compared to 5 years ago.
2HP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, 2HP is doing worse than 63.33% of the companies in the same industry.
The Debt to FCF ratio of 2HP is 163.83, which is on the high side as it means it would take 2HP, 163.83 years of fcf income to pay off all of its debts.
2HP has a Debt to FCF ratio (163.83) which is comparable to the rest of the industry.
2HP has a Debt/Equity ratio of 0.52. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
2HP has a Debt to Equity ratio (0.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 163.83 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.52
WACC6.87%
2.3 Liquidity
2HP has a Current Ratio of 1.29. This is a normal value and indicates that 2HP is financially healthy and should not expect problems in meeting its short term obligations.
2HP's Current ratio of 1.29 is on the low side compared to the rest of the industry. 2HP is outperformed by 63.33% of its industry peers.
A Quick Ratio of 0.96 indicates that 2HP may have some problems paying its short term obligations.
2HP has a Quick ratio of 0.96. This is comparable to the rest of the industry: 2HP outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
2HP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.09%.
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 11.79% 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)2.09%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%5.87%
3.2 Future
The Earnings Per Share is expected to grow by 5.81% on average over the next years.
2HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y-9.19%
EPS Next 2Y3.75%
EPS Next 3Y6.27%
EPS Next 5Y5.81%
Revenue Next Year8.85%
Revenue Next 2Y6.89%
Revenue Next 3Y6.09%
Revenue Next 5Y5.7%
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
A Price/Earnings ratio of 10.98 indicates a reasonable valuation of 2HP.
2HP's Price/Earnings ratio is rather cheap when compared to the industry. 2HP is cheaper than 86.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, 2HP is valued rather cheaply.
A Price/Forward Earnings ratio of 10.07 indicates a reasonable valuation of 2HP.
73.33% 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 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.07 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 263.37 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.1
EPS Next 2Y3.75%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.44%.
2HP's Dividend Yield is rather good when compared to the industry average which is at 2.21. 2HP pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 2HP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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 53.50% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.5%
EPS Next 2Y3.75%
EPS Next 3Y6.27%
FRA:2HP (7/4/2025, 7:00:00 PM)
18.232
+0.03 (+0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.27%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap23.95B
Analysts77
Price Target18.2 (-0.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.45
Dividend Growth(5Y)3.2%
DP53.5%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.04%
Min EPS beat(2)-1.9%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)5.7%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.15%
EPS beat(12)10
Avg EPS beat(12)5.28%
EPS beat(16)13
Avg EPS beat(16)5.62%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.42%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)1.45%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)0.07%
Revenue beat(16)5
Avg Revenue beat(16)-0.37%
PT rev (1m)11.05%
PT rev (3m)-2.88%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)2.47%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.89 | ||
| P/FCF | 263.37 | ||
| P/OCF | 12.08 | ||
| P/B | 1.18 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)1.66
EY9.1%
EPS(NY)1.81
Fwd EY9.93%
FCF(TTM)0.07
FCFY0.38%
OCF(TTM)1.51
OCFY8.28%
SpS20.48
BVpS15.44
TBVpS4.29
PEG (NY)N/A
PEG (5Y)5.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 5.75% | ||
| ROCE | 5.1% | ||
| ROIC | 3.59% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 10.8% | ||
| OM | 6.98% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.05% | ||
| FCFM | 0.34% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 163.83 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 91.3% | ||
| Cap/Sales | 7.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.19% | ||
| Profit Quality | 7.8% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.02 |
F-Score4
WACC6.87%
ROIC/WACC0.52
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)2.09%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-9.52%
EPS Next Y-9.19%
EPS Next 2Y3.75%
EPS Next 3Y6.27%
EPS Next 5Y5.81%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%5.87%
Revenue Next Year8.85%
Revenue Next 2Y6.89%
Revenue Next 3Y6.09%
Revenue Next 5Y5.7%
EBIT growth 1Y-0.76%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year67.25%
EBIT Next 3Y27.85%
EBIT Next 5Y23.39%
FCF growth 1Y-90.23%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-46.37%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%