HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
20.095 EUR
+0.08 (+0.4%)
Taking everything into account, 2HP scores 3 out of 10 in our fundamental rating. 2HP was compared to 29 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. 2HP has a correct valuation and a medium 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.
2HP had positive earnings in 4 of the past 5 years.
In the past 5 years 2HP always reported a positive cash flow from operatings.
1.2 Ratios
2HP has a Return On Assets of 1.47%. This is comparable to the rest of the industry: 2HP outperforms 51.72% of its industry peers.
With a decent Return On Equity value of 4.66%, 2HP is doing good in the industry, outperforming 68.97% of the companies in the same industry.
2HP has a Return On Invested Capital (2.77%) which is in line with its industry peers.
2HP had an Average Return On Invested Capital over the past 3 years of 4.36%. This is significantly below the industry average of 18.98%.
| 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
2HP's Profit Margin of 3.43% is in line compared to the rest of the industry. 2HP outperforms 51.72% of its industry peers.
2HP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.15%, 2HP is doing good in the industry, outperforming 65.52% of the companies in the same industry.
In the last couple of years the Operating Margin of 2HP has remained more or less at the same level.
2HP's Gross Margin of 29.45% is in line compared to the rest of the industry. 2HP outperforms 55.17% of 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 | 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
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.
Compared to 1 year ago, 2HP has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.79, 2HP is in line with its industry, outperforming 44.83% of the companies in the same industry.
2HP has a debt to FCF ratio of 105.12. This is a negative value and a sign of low solvency as 2HP would need 105.12 years to pay back of all of its debts.
The Debt to FCF ratio of 2HP (105.12) is worse than 68.97% of its industry peers.
2HP has a Debt/Equity ratio of 0.76. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
2HP's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. 2HP is outperformed by 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.4
WACC6.87%
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.
The Current ratio of 2HP (0.95) is worse than 68.97% 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.
Measured over the past 5 years, 2HP shows a small growth in Earnings Per Share. The EPS has been growing by 2.15% on average per year.
The Revenue has grown by 13.97% in the past year. This is quite good.
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 11.31% on average per year.
The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
EPS Next Y-3.18%
EPS Next 2Y10.41%
EPS Next 3Y11.54%
EPS Next 5Y11.31%
Revenue Next Year15.45%
Revenue Next 2Y16.61%
Revenue Next 3Y12.71%
Revenue Next 5Y9.51%
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
The Price/Earnings ratio is 12.33, which indicates a correct valuation of 2HP.
Compared to the rest of the industry, the Price/Earnings ratio of 2HP indicates a rather cheap valuation: 2HP is cheaper than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, 2HP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.67, the valuation of 2HP can be described as reasonable.
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 34.59, 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
72.41% of the companies in the same industry are more expensive than 2HP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2HP indicates a slightly more expensive valuation: 2HP is more expensive than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 136.92 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.73
EPS Next 2Y10.41%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, 2HP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.13, 2HP pays a better dividend. On top of this 2HP pays more dividend than 86.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 2HP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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
67.34% of the earnings are spent on dividend by 2HP. 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 2Y10.41%
EPS Next 3Y11.54%
FRA:2HP (11/14/2025, 7:00:00 PM)
20.095
+0.08 (+0.4%)
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 Cap26.51B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts75.38
Price Target22.69 (12.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)3.81%
PT rev (3m)15.34%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 9.67 | ||
| P/S | 0.93 | ||
| P/FCF | 136.92 | ||
| P/OCF | 12.4 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)1.63
EY8.11%
EPS(NY)2.08
Fwd EY10.34%
FCF(TTM)0.15
FCFY0.73%
OCF(TTM)1.62
OCFY8.06%
SpS21.57
BVpS15.92
TBVpS-3.92
PEG (NY)N/A
PEG (5Y)5.73
Graham Number24.16
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
WACC6.87%
ROIC/WACC0.4
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-3.18%
EPS Next 2Y10.41%
EPS Next 3Y11.54%
EPS Next 5Y11.31%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.45%
Revenue Next 2Y16.61%
Revenue Next 3Y12.71%
Revenue Next 5Y9.51%
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%
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.
Can you provide the valuation status for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a valuation rating of 4 / 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 5 / 10.
What is the expected EPS growth for HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
The Earnings per Share (EPS) of HEWLETT PACKARD ENTERPRISE (2HP.DE) is expected to decline by -3.18% in the next year.
How sustainable is the dividend of HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (2HP.DE) is 5 / 10 and the dividend payout ratio is 67.34%.