HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
FRA:2HP - Deutsche Boerse Ag - US42824C1099 - Common Stock - Currency: EUR
Overall 2HP gets a fundamental rating of 5 out of 10. We evaluated 2HP against 28 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on 2HP.
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
2HP has a better Return On Assets (3.58%) than 67.86% of its industry peers.
The Return On Equity of 2HP (10.29%) is better than 78.57% of its industry peers.
With a Return On Invested Capital value of 3.81%, 2HP perfoms like the industry average, outperforming 53.57% 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 15.94%.
| 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 has a better Profit Margin (8.48%) than 85.71% of its industry peers.
2HP's Profit Margin has improved in the last couple of years.
2HP's Operating Margin of 8.28% is fine compared to the rest of the industry. 2HP outperforms 78.57% of its industry peers.
2HP's Operating Margin has been stable in the last couple of years.
2HP's Gross Margin of 32.79% is fine compared to the rest of the industry. 2HP outperforms 60.71% of its industry peers.
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
2HP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, 2HP has a worse debt to assets ratio.
2.2 Solvency
2HP has an Altman-Z score of 0.88. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
2HP has a Altman-Z score of 0.88. This is in the lower half of the industry: 2HP underperforms 60.71% of its industry peers.
The Debt to FCF ratio of 2HP is 9.24, which is on the high side as it means it would take 2HP, 9.24 years of fcf income to pay off all of its debts.
2HP has a better Debt to FCF ratio (9.24) than 64.29% 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.
With a Debt to Equity ratio value of 0.58, 2HP perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.58
WACC6.6%
2.3 Liquidity
A Current Ratio of 1.29 indicates that 2HP should not have too much problems paying its short term obligations.
The Current ratio of 2HP (1.29) is comparable to the rest of the industry.
2HP has a Quick Ratio of 1.29. 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 Quick ratio of 0.99. This is comparable to the rest of the industry: 2HP outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for 2HP have decreased by -1.00% in the last year.
The Earnings Per Share has been growing slightly by 2.15% on average over the past years.
The Revenue has been growing slightly by 3.40% in the past 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)-1%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%2.08%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%16.27%
3.2 Future
The Earnings Per Share is expected to grow by 2.98% 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 5.43% yearly.
EPS Next Y8.55%
EPS Next 2Y7.89%
EPS Next 3Y6.53%
EPS Next 5Y2.98%
Revenue Next Year8.69%
Revenue Next 2Y6.69%
Revenue Next 3Y5.35%
Revenue Next 5Y5.43%
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 cheaply with a Price/Earnings ratio of 7.58.
96.43% of the companies in the same industry are more expensive than 2HP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 2HP to the average of the S&P500 Index (29.35), we can say 2HP is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.53, the valuation of 2HP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2HP indicates a rather cheap valuation: 2HP is cheaper than 82.14% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (22.10), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 6.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 67.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.02 | ||
| EV/EBITDA | 4.43 |
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.
2HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)3.52
EPS Next 2Y7.89%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.90%.
In the last 3 months the price of 2HP has falen by -38.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
2HP's Dividend Yield is rather good when compared to the industry average which is at 2.25. 2HP pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 2HP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
26.47% of the earnings are spent on dividend by 2HP. This is a low number and 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 2Y7.89%
EPS Next 3Y6.53%
FRA:2HP (3/7/2025, 7:00:00 PM)
13.87
-3.22 (-18.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.61%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap18.22B
Analysts75.79
Price Target23.86 (72.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend0.48
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)1.13%
PT rev (3m)10.04%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 6.53 | ||
| P/S | 0.66 | ||
| P/FCF | 10.02 | ||
| P/OCF | 4.56 | ||
| P/B | 0.8 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)1.83
EY13.19%
EPS(NY)2.12
Fwd EY15.31%
FCF(TTM)1.38
FCFY9.98%
OCF(TTM)3.04
OCFY21.95%
SpS21.13
BVpS17.4
TBVpS4.36
PEG (NY)0.89
PEG (5Y)3.52
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 | 0.88 |
F-Score5
WACC6.6%
ROIC/WACC0.58
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%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%2.08%
EPS Next Y8.55%
EPS Next 2Y7.89%
EPS Next 3Y6.53%
EPS Next 5Y2.98%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%16.27%
Revenue Next Year8.69%
Revenue Next 2Y6.69%
Revenue Next 3Y5.35%
Revenue Next 5Y5.43%
EBIT growth 1Y2.13%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year91.87%
EBIT Next 3Y28.27%
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%