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. There are concerns on the financial health of 2HP while its profitability can be described as average. 2HP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 2HP was profitable.
In the past year 2HP had a positive cash flow from operations.
2HP had positive earnings in 4 of the past 5 years.
2HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.58%, 2HP is doing good in the industry, outperforming 62.96% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.29%, 2HP is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
2HP has a Return On Invested Capital (3.81%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2HP is significantly below the industry average of 16.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 10.29% | ||
| ROIC | 3.81% |
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
2HP's Profit Margin of 8.48% is fine compared to the rest of the industry. 2HP outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of 2HP has grown nicely.
With a decent Operating Margin value of 8.28%, 2HP is doing good in the industry, outperforming 74.07% of the companies in the same industry.
2HP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 32.79%, 2HP is in the better half of the industry, outperforming 66.67% 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 | 8.28% | ||
| PM (TTM) | 8.48% | ||
| GM | 32.79% |
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.
The number of shares outstanding for 2HP has been increased compared to 1 year ago.
2HP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 2HP is higher compared to a year ago.
2.2 Solvency
2HP has an Altman-Z score of 0.97. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 2HP (0.97) is worse than 70.37% of its industry peers.
2HP has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as 2HP would need 9.24 years to pay back of all of its debts.
2HP's Debt to FCF ratio of 9.24 is in line compared to the rest of the industry. 2HP outperforms 55.56% of its industry peers.
2HP has a Debt/Equity ratio of 0.58. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
2HP has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: 2HP outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.38
WACC10.08%
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 in line compared to the rest of the industry. 2HP outperforms 40.74% of its industry peers.
A Quick Ratio of 0.99 indicates that 2HP may have some problems paying its short term obligations.
2HP has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
2HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.33%.
2HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.15% yearly.
Looking at the last year, 2HP shows a small growth in Revenue. The Revenue has grown by 3.40% in the last year.
Measured over the past years, 2HP shows a small growth in Revenue. The Revenue has been growing by 0.67% on average per year.
EPS 1Y (TTM)-8.33%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%11.54%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%15.06%
3.2 Future
The Earnings Per Share is expected to grow by 2.98% on average over the next years.
Based on estimates for the next years, 2HP will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
EPS Next Y8.78%
EPS Next 2Y7.94%
EPS Next 3Y6.54%
EPS Next 5Y2.98%
Revenue Next Year8.79%
Revenue Next 2Y6.8%
Revenue Next 3Y5.55%
Revenue Next 5Y5.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 10.41, the valuation of 2HP can be described as reasonable.
85.19% of the companies in the same industry are more expensive than 2HP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 2HP is valued rather cheaply.
The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of 2HP.
The rest of the industry has a similar Price/Forward Earnings ratio as 2HP.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (92.74), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than 74.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 5.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 2HP may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)4.84
EPS Next 2Y7.94%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, 2HP has a reasonable but not impressive dividend return.
2HP's Dividend Yield is rather good when compared to the industry average which is at 2.05. 2HP pays more dividend than 81.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 2HP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of 2HP has a limited annual growth rate of 3.20%.
Dividend Growth(5Y)3.2%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
2HP pays out 26.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of 2HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.47%
EPS Next 2Y7.94%
EPS Next 3Y6.54%
HEWLETT PACKARD ENTERPRISE
FRA:2HP (2/4/2025, 7:00:00 PM)
19.99
-0.16 (-0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap26.29B
Analysts78.18
Price Target23.6 (18.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend0.52
Dividend Growth(5Y)3.2%
DP26.47%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)2.93%
Max EPS beat(2)5.8%
EPS beat(4)4
Avg EPS beat(4)5.25%
Min EPS beat(4)2.93%
Max EPS beat(4)6.92%
EPS beat(8)8
Avg EPS beat(8)6.23%
EPS beat(12)10
Avg EPS beat(12)4.96%
EPS beat(16)14
Avg EPS beat(16)6.81%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-5.97%
Max Revenue beat(4)4.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.49%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.37%
PT rev (1m)2.42%
PT rev (3m)20.37%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)0.7%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)3.71%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.9 | ||
| P/FCF | 13.77 | ||
| P/OCF | 6.26 | ||
| P/B | 1.1 | ||
| P/tB | 4.37 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)1.92
EY9.6%
EPS(NY)2.08
Fwd EY10.43%
FCF(TTM)1.45
FCFY7.26%
OCF(TTM)3.19
OCFY15.97%
SpS22.16
BVpS18.26
TBVpS4.58
PEG (NY)1.19
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 10.29% | ||
| ROCE | 5.51% | ||
| ROIC | 3.81% | ||
| ROICexc | 5.62% | ||
| ROICexgc | 13.91% | ||
| OM | 8.28% | ||
| PM (TTM) | 8.48% | ||
| GM | 32.79% | ||
| FCFM | 6.55% |
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-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.24 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 92.32% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.23 | ||
| Cash Conversion | 85.82% | ||
| Profit Quality | 77.29% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 0.97 |
F-Score5
WACC10.08%
ROIC/WACC0.38
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)-8.33%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%11.54%
EPS Next Y8.78%
EPS Next 2Y7.94%
EPS Next 3Y6.54%
EPS Next 5Y2.98%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%15.06%
Revenue Next Year8.79%
Revenue Next 2Y6.8%
Revenue Next 3Y5.55%
Revenue Next 5Y5.43%
EBIT growth 1Y2.13%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year92.54%
EBIT Next 3Y28.01%
EBIT Next 5Y23.39%
FCF growth 1Y23.38%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-1.96%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%