HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2HP - US42824C1099 - Common Stock
20.575 EUR
-0.09 (-0.41%)
Taking everything into account, 2HP scores 3 out of 10 in our fundamental rating. 2HP was compared to 30 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of 2HP have multiple concerns. 2HP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 2HP was profitable.
2HP had a positive operating cash flow in the past year.
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
2HP has a Return On Assets of -0.08%. This is in the lower half of the industry: 2HP underperforms 60.00% of its industry peers.
2HP's Return On Equity of -0.24% is in line compared to the rest of the industry. 2HP outperforms 50.00% of its industry peers.
2HP has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
2HP had an Average Return On Invested Capital over the past 3 years of 4.48%. This is significantly below the industry average of 15.69%.
| 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 has a Operating Margin (4.79%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 2HP has declined.
2HP has a Gross Margin (30.26%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 2HP has remained more or less at the same level.
| 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.
Compared to 1 year ago, 2HP has more shares outstanding
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
2HP has an Altman-Z score of 0.85. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
2HP has a worse Altman-Z score (0.85) than 66.67% 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.
Looking at the Debt to FCF ratio, with a value of 35.67, 2HP is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that 2HP is somewhat dependend on debt financing.
2HP has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: 2HP underperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.41
WACC6.89%
2.3 Liquidity
2HP has a Current Ratio of 1.01. This is a normal value and indicates that 2HP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, 2HP is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that 2HP may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, 2HP is not doing good in the industry: 73.33% 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
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
Based on estimates for the next years, 2HP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.07% on average per year.
2HP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.07%
Revenue Next Year18.14%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y8.07%
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.
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
2HP is valuated correctly with a Price/Earnings ratio of 12.55.
86.67% of the companies in the same industry are more expensive than 2HP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. 2HP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.12, the valuation of 2HP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.13. 2HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than 70.00% of the companies in the same industry.
2HP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.87 | ||
| EV/EBITDA | 11.07 |
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.
A more expensive valuation may be justified as 2HP's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)0.53
PEG (5Y)1.69
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.33%.
Compared to an average industry Dividend Yield of 0.97, 2HP pays a better dividend. On top of this 2HP pays more dividend than 83.33% of the companies listed in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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
The earnings of 2HP are negative and hence is the payout ratio. 2HP will probably not be able to sustain this dividend level.
2HP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1349.15%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
FRA:2HP (12/30/2025, 7:00:00 PM)
20.575
-0.09 (-0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap27.15B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.62 (9.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend0.52
Dividend Growth(5Y)4.91%
DP-1349.15%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.29%
Min EPS beat(2)1.17%
Max EPS beat(2)5.42%
EPS beat(4)3
Avg EPS beat(4)5.16%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.21%
EPS beat(12)11
Avg EPS beat(12)5.87%
EPS beat(16)13
Avg EPS beat(16)5.01%
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)6.06%
Revenue beat(4)2
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.04%
PT rev (1m)-4.35%
PT rev (3m)3.59%
EPS NQ rev (1m)9.28%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-6%
Revenue NQ rev (3m)-6.15%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 10.12 | ||
| P/S | 0.93 | ||
| P/FCF | 50.87 | ||
| P/OCF | 10.93 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)1.64
EY7.97%
EPS(NY)2.03
Fwd EY9.88%
FCF(TTM)0.4
FCFY1.97%
OCF(TTM)1.88
OCFY9.15%
SpS22.12
BVpS15.92
TBVpS-3.52
PEG (NY)0.53
PEG (5Y)1.69
Graham Number24.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROCE | 3.21% | ||
| ROIC | 2.8% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 9.35% | ||
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% | ||
| FCFM | 1.83% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
ROICexc(3y)5.61%
ROICexc(5y)5.73%
ROICexgc(3y)14.25%
ROICexgc(5y)14.22%
ROCE(3y)5.21%
ROCE(5y)5.58%
ROICexgc growth 3Y-15.86%
ROICexgc growth 5Y-2.73%
ROICexc growth 3Y-20.88%
ROICexc growth 5Y-6.13%
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%
F-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 83.74% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.85 |
F-Score4
WACC6.89%
ROIC/WACC0.41
Cap/Depr(3y)94.72%
Cap/Depr(5y)101.28%
Cap/Sales(3y)8.08%
Cap/Sales(5y)8.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
EPS Next Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.07%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year18.14%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y8.07%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year113.12%
EBIT Next 3Y37.36%
EBIT Next 5Y19.53%
FCF growth 1Y-68.24%
FCF growth 3Y-24.74%
FCF growth 5YN/A
OCF growth 1Y-32.76%
OCF growth 3Y-14.02%
OCF growth 5Y5.44%
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 12.55 and the Price/Book (PB) ratio is 1.29.
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 23.77% in the next year.