HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
19.614 EUR
-0.3 (-1.5%)
We assign a fundamental rating of 3 out of 10 to 2HP. 2HP was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 2HP is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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 (1.47%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 4.66%, 2HP is doing good in the industry, outperforming 65.52% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.77%, 2HP is in line with its industry, outperforming 48.28% 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 18.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROIC | 2.77% |
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
The Profit Margin of 2HP (3.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 2HP has grown nicely.
2HP has a better Operating Margin (6.15%) than 65.52% of its industry peers.
In the last couple of years the Operating Margin of 2HP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 29.45%, 2HP is in line with its industry, outperforming 55.17% of the companies in the same industry.
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 | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2HP is destroying value.
The number of shares outstanding for 2HP has been increased compared to 1 year ago.
The number of shares outstanding for 2HP has been increased compared to 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 0.79. 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 0.79 is in line compared to the rest of the industry. 2HP outperforms 41.38% of its industry peers.
The Debt to FCF ratio of 2HP is 105.12, which is on the high side as it means it would take 2HP, 105.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 105.12, 2HP is doing worse than 65.52% of the companies in the same industry.
2HP has a Debt/Equity ratio of 0.76. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
2HP has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: 2HP underperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.41
WACC6.74%
2.3 Liquidity
2HP has a Current Ratio of 0.95. This is a bad value and indicates that 2HP is not financially healthy enough and could expect problems in meeting its short term obligations.
2HP has a worse Current ratio (0.95) than 65.52% of its industry peers.
2HP has a Quick Ratio of 0.95. 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 0.69, 2HP is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for 2HP have decreased by -1.56% in the last year.
2HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.15% yearly.
2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.97%.
2HP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.67% yearly.
EPS 1Y (TTM)-1.56%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-12%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
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 10.57% on average per year.
Based on estimates for the next years, 2HP will show a quite strong growth in Revenue. The Revenue will grow by 9.76% on average per year.
EPS Next Y-3.14%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
EPS Next 5Y10.57%
Revenue Next Year15.38%
Revenue Next 2Y16.2%
Revenue Next 3Y11.6%
Revenue Next 5Y9.76%
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
Based on the Price/Earnings ratio of 12.03, the valuation of 2HP can be described as correct.
2HP's Price/Earnings ratio is rather cheap when compared to the industry. 2HP is cheaper than 82.76% of the companies in the same industry.
2HP is valuated cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
2HP is valuated reasonably with a Price/Forward Earnings ratio of 9.48.
2HP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 75.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 68.97% of the companies listed in the same industry.
2HP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 2HP is more expensive than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 133.5 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.59
EPS Next 2Y10.15%
EPS Next 3Y10.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, 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 2.21. 2HP pays more dividend than 82.76% of the companies in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 67.34% of its income as dividend. This is not a sustainable payout ratio.
2HP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.34%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
FRA:2HP (10/22/2025, 7:00:00 PM)
19.614
-0.3 (-1.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner ChangeN/A
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap25.88B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts76
Price Target22.14 (12.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.45
Dividend Growth(5Y)3.2%
DP67.34%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.57%
Min EPS beat(2)1.17%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)4.54%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)4.78%
EPS beat(12)11
Avg EPS beat(12)5.45%
EPS beat(16)13
Avg EPS beat(16)5.08%
Revenue beat(2)2
Avg Revenue beat(2)3.74%
Min Revenue beat(2)1.42%
Max Revenue beat(2)6.06%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)1.39%
PT rev (3m)13.7%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)5.1%
EPS NY rev (1m)2.47%
EPS NY rev (3m)6.24%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)9.09%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 9.48 | ||
| P/S | 0.91 | ||
| P/FCF | 133.5 | ||
| P/OCF | 12.09 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)1.63
EY8.31%
EPS(NY)2.07
Fwd EY10.55%
FCF(TTM)0.15
FCFY0.75%
OCF(TTM)1.62
OCFY8.27%
SpS21.6
BVpS15.93
TBVpS-3.92
PEG (NY)N/A
PEG (5Y)5.59
Graham Number24.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROCE | 4.07% | ||
| ROIC | 2.77% | ||
| ROICexc | 3.04% | ||
| ROICexgc | 8.54% | ||
| OM | 6.15% | ||
| PM (TTM) | 3.43% | ||
| GM | 29.45% | ||
| FCFM | 0.68% |
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%
ROICexgc growth 3Y10.99%
ROICexgc 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 90.36% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.77% | ||
| Profit Quality | 19.81% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.79 |
F-Score4
WACC6.74%
ROIC/WACC0.41
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)-1.56%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-12%
EPS Next Y-3.14%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
EPS Next 5Y10.57%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.38%
Revenue Next 2Y16.2%
Revenue Next 3Y11.6%
Revenue Next 5Y9.76%
EBIT growth 1Y-10.43%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year79.02%
EBIT Next 3Y33.97%
EBIT Next 5Y17.11%
FCF growth 1Y-84.67%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-46.25%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%