HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
17.948 EUR
-0.29 (-1.57%)
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. 2HP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 (1.47%) which is in line with its industry peers.
2HP's Return On Equity of 4.66% is fine compared to the rest of the industry. 2HP outperforms 66.67% of its industry peers.
2HP has a Return On Invested Capital of 2.77%. This is comparable to the rest of the industry: 2HP outperforms 46.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 17.89%.
| 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 50.00% 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 6.15%, 2HP is doing good in the industry, outperforming 63.33% of the companies in the same industry.
2HP's Operating Margin has been stable in the last couple of years.
2HP's Gross Margin of 29.45% is in line compared to the rest of the industry. 2HP outperforms 56.67% 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
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.
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
Based on the Altman-Z score of 0.75, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 2HP (0.75) is comparable to the rest of the 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.
2HP's Debt to FCF ratio of 105.12 is on the low side compared to the rest of the industry. 2HP is outperformed by 73.33% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 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 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.41
WACC6.72%
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 Current ratio of 0.95. This is in the lower half of the industry: 2HP underperforms 66.67% of its industry peers.
A Quick Ratio of 0.69 indicates that 2HP may have some problems paying its short term obligations.
The Quick ratio of 2HP (0.69) is worse than 76.67% 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%.
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.
Looking at the last year, 2HP shows a quite strong growth in Revenue. The Revenue has grown by 13.97% 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)-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
2HP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
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
Based on the Price/Earnings ratio of 11.01, the valuation of 2HP can be described as reasonable.
Based on the Price/Earnings ratio, 2HP is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. 2HP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.61, the valuation of 2HP can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.42. 2HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than 73.33% of the companies in the same industry.
70.00% of the companies in the same industry are cheaper than 2HP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 121.91 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.12
EPS Next 2Y10.41%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.97, 2HP pays a better dividend. On top of this 2HP pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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
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 2Y10.41%
EPS Next 3Y11.54%
FRA:2HP (11/19/2025, 7:00:00 PM)
17.948
-0.29 (-1.57%)
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 Cap23.68B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts75.38
Price Target22.69 (26.42%)
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)2.46%
PT rev (3m)13.84%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)7.28%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 8.61 | ||
| P/S | 0.83 | ||
| P/FCF | 121.91 | ||
| P/OCF | 11.04 | ||
| P/B | 1.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.87 |
EPS(TTM)1.63
EY9.08%
EPS(NY)2.08
Fwd EY11.61%
FCF(TTM)0.15
FCFY0.82%
OCF(TTM)1.63
OCFY9.06%
SpS21.64
BVpS15.97
TBVpS-3.93
PEG (NY)N/A
PEG (5Y)5.12
Graham Number24.2
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 | 0.75 |
F-Score4
WACC6.72%
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-3.18%
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 4 / 10 to 2HP.DE.
Can you provide the valuation status for HEWLETT PACKARD ENTERPRISE?
ChartMill assigns a valuation rating of 5 / 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%.