HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2HP - US42824C1099 - Common Stock
17.912 EUR
-0.68 (-3.65%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. 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
- The Return On Assets of 2HP (-0.08%) is worse than 63.64% of its industry peers.
- With a Return On Equity value of -0.24%, 2HP perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
- 2HP's Return On Invested Capital of 2.80% is in line compared to the rest of the industry. 2HP outperforms 42.42% of its industry peers.
- 2HP had an Average Return On Invested Capital over the past 3 years of 4.48%. This 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.
- With a Gross Margin value of 30.26%, 2HP perfoms like the industry average, outperforming 48.48% of the companies in the same 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 2HP 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
- 2HP has an Altman-Z score of 0.80. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
- 2HP's Altman-Z score of 0.80 is on the low side compared to the rest of the industry. 2HP is outperformed by 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.
- 2HP has a Debt to FCF ratio of 35.67. This is in the lower half of the industry: 2HP underperforms 66.67% of its industry peers.
- 2HP has a Debt/Equity ratio of 0.72. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
- The Debt to Equity ratio of 2HP (0.72) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.41
WACC6.79%
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.
- With a Current ratio value of 1.01, 2HP is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
- A Quick Ratio of 0.76 indicates that 2HP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.76, 2HP is doing worse than 72.73% of the companies in the same industry.
| 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%.
- 2HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- Looking at the last year, 2HP shows a quite strong growth in Revenue. The Revenue has grown by 13.84% in the last year.
- 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
- 2HP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.81% yearly.
- 2HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
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
- 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 10.92 indicates a reasonable valuation of 2HP.
- Based on the Price/Earnings ratio, 2HP is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. 2HP is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 8.80 indicates a reasonable valuation of 2HP.
- 81.82% 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 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
- 2HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 69.70% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 2HP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.26 | ||
| EV/EBITDA | 10.12 |
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 17.12% in the coming years.
PEG (NY)0.46
PEG (5Y)1.47
EPS Next 2Y19.73%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
- 2HP has a Yearly Dividend Yield of 2.67%.
- 2HP's Dividend Yield is rather good when compared to the industry average which is at 0.91. 2HP pays more dividend than 87.88% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 2HP pays a bit more dividend than the S&P500 average.
| 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 10.92 and the Price/Book (PB) ratio is 1.12.
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.