HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
20.445 EUR
-0.34 (-1.61%)
Taking everything into account, 2HP scores 4 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 decent growth rate and is not valued too expensively.
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.
2HP has a Return On Equity of 4.66%. This is in the better half of the industry: 2HP outperforms 65.52% of its industry peers.
2HP has a Return On Invested Capital (2.77%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 19.94%.
| 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.
In the last couple of years the Profit Margin of 2HP has grown nicely.
2HP's Operating Margin of 6.15% is in line compared to the rest of the industry. 2HP outperforms 58.62% of its industry peers.
2HP's Operating Margin has been stable in the last couple of years.
The Gross Margin of 2HP (29.45%) is comparable to the rest of the 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
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.
Compared to 5 years ago, 2HP has more shares outstanding
The debt/assets ratio for 2HP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
2HP's Altman-Z score of 0.80 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.
With a Debt to FCF ratio value of 105.12, 2HP is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, 2HP is in line with its industry, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.4
WACC6.86%
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.
With a Current ratio value of 0.95, 2HP is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
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.
The Quick ratio of 2HP (0.69) is worse than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
2HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.56%.
The Earnings Per Share has been growing slightly by 2.15% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.76% on average over the next years. This is quite good.
EPS Next Y-3.24%
EPS Next 2Y10.65%
EPS Next 3Y11.05%
EPS Next 5Y10.57%
Revenue Next Year15.43%
Revenue Next 2Y16.63%
Revenue Next 3Y12.15%
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
The Price/Earnings ratio is 12.47, which indicates a correct valuation of 2HP.
86.21% 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 (26.13), we can say 2HP is valued rather cheaply.
A Price/Forward Earnings ratio of 9.69 indicates a reasonable valuation of 2HP.
Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (22.35), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
2HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 72.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 2HP is valued a bit more expensive than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 137.77 | ||
| EV/EBITDA | 10.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.79
EPS Next 2Y10.65%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, 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 2.04. 2HP pays more dividend than 86.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 2HP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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.
The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.34%
EPS Next 2Y10.65%
EPS Next 3Y11.05%
FRA:2HP (11/5/2025, 7:00:00 PM)
20.445
-0.34 (-1.61%)
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 Cap26.98B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts76
Price Target22.98 (12.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)5.26%
PT rev (3m)18.03%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.94 | ||
| P/FCF | 137.77 | ||
| P/OCF | 12.48 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.77 |
EPS(TTM)1.64
EY8.02%
EPS(NY)2.11
Fwd EY10.32%
FCF(TTM)0.15
FCFY0.73%
OCF(TTM)1.64
OCFY8.01%
SpS21.81
BVpS16.09
TBVpS-3.96
PEG (NY)N/A
PEG (5Y)5.79
Graham Number24.37
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 | 0.8 |
F-Score4
WACC6.86%
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-3.24%
EPS Next 2Y10.65%
EPS Next 3Y11.05%
EPS Next 5Y10.57%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.43%
Revenue Next 2Y16.63%
Revenue Next 3Y12.15%
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%
HEWLETT PACKARD ENTERPRISE / 2HP.DE FAQ
Can you provide the ChartMill fundamental rating for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a fundamental rating of 4 / 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 -3.24% 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%.