HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2HP - US42824C1099 - Common Stock
18.766 EUR
-0.47 (-2.45%)
2HP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of 2HP have multiple concerns. 2HP has a correct valuation and a medium growth rate.
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
- Looking at the Return On Assets, with a value of -0.08%, 2HP is doing worse than 62.50% of the companies in the same industry.
- The Return On Equity of 2HP (-0.24%) is comparable to the rest of the industry.
- 2HP's Return On Invested Capital of 2.80% is in line compared to the rest of the industry. 2HP outperforms 43.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 16.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROIC | 2.8% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
1.3 Margins
- 2HP has a Operating Margin (4.79%) which is comparable to the rest of the industry.
- 2HP's Operating Margin has declined in the last couple of years.
- 2HP has a Gross Margin (30.26%) which is comparable to the rest of the industry.
- 2HP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% |
OM growth 3Y-15.03%
OM growth 5Y-4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.2%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 2HP is destroying value.
- Compared to 1 year ago, 2HP has more shares outstanding
- 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
- 2HP has an Altman-Z score of 0.82. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.82, 2HP is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
- 2HP has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as 2HP would need 35.67 years to pay back of all of its debts.
- 2HP has a Debt to FCF ratio of 35.67. This is in the lower half of the industry: 2HP underperforms 65.63% of its industry peers.
- 2HP has a Debt/Equity ratio of 0.72. This is a neutral value indicating 2HP is somewhat dependend on debt financing.
- 2HP has a worse Debt to Equity ratio (0.72) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.41
WACC6.85%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that 2HP should not have too much problems paying its short term obligations.
- 2HP's Current ratio of 1.01 is on the low side compared to the rest of the industry. 2HP is outperformed by 75.00% of its industry peers.
- A Quick Ratio of 0.76 indicates that 2HP may have some problems paying its short term obligations.
- With a Quick ratio value of 0.76, 2HP is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- 2HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.53%.
- The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
- Looking at the last year, 2HP shows a quite strong growth in Revenue. The Revenue has grown by 13.84% in the last year.
- Measured over the past years, 2HP shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
3.2 Future
- The Earnings Per Share is expected to grow by 15.81% on average over the next years. This is quite good.
- 2HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.81%
Revenue Next Year18.14%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y7.54%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 11.30, the valuation of 2HP can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 78.13% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. 2HP is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.13, the valuation of 2HP can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than 71.88% of the companies in the same industry.
- 2HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
- 71.88% 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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.9 | ||
| EV/EBITDA | 10.52 |
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's earnings are expected to grow with 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)1.53
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.60%, 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 0.91. 2HP pays more dividend than 87.50% of the companies in the same industry.
- 2HP's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
- The dividend of 2HP has a limited annual growth rate of 4.91%.
Dividend Growth(5Y)4.91%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
- 2HP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 2HP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1349.15%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
FRA:2HP (1/16/2026, 7:00:00 PM)
18.766
-0.47 (-2.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)12-04 2025-12-04/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners90.03%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap24.76B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.77 (21.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend0.52
Dividend Growth(5Y)4.91%
DP-1349.15%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.29%
Min EPS beat(2)1.17%
Max EPS beat(2)5.42%
EPS beat(4)3
Avg EPS beat(4)5.16%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.21%
EPS beat(12)11
Avg EPS beat(12)5.87%
EPS beat(16)13
Avg EPS beat(16)5.01%
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)6.06%
Revenue beat(4)2
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.04%
PT rev (1m)-0.63%
PT rev (3m)2.17%
EPS NQ rev (1m)5.37%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-3.44%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 9.13 | ||
| P/S | 0.84 | ||
| P/FCF | 45.9 | ||
| P/OCF | 9.86 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.52 |
EPS(TTM)1.66
EY8.85%
EPS(NY)2.06
Fwd EY10.95%
FCF(TTM)0.41
FCFY2.18%
OCF(TTM)1.9
OCFY10.14%
SpS22.36
BVpS16.1
TBVpS-3.55
PEG (NY)0.48
PEG (5Y)1.53
Graham Number24.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.24% | ||
| ROCE | 3.21% | ||
| ROIC | 2.8% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 9.35% | ||
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 30.26% | ||
| FCFM | 1.83% |
ROA(3y)2.35%
ROA(5y)2.9%
ROE(3y)6.54%
ROE(5y)8.23%
ROIC(3y)4.48%
ROIC(5y)4.78%
ROICexc(3y)5.61%
ROICexc(5y)5.73%
ROICexgc(3y)14.25%
ROICexgc(5y)14.22%
ROCE(3y)5.21%
ROCE(5y)5.58%
ROICexgc growth 3Y-15.86%
ROICexgc growth 5Y-2.73%
ROICexc growth 3Y-20.88%
ROICexc growth 5Y-6.13%
OM growth 3Y-15.03%
OM growth 5Y-4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.2%
GM growth 5Y-0.73%
F-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 83.74% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.82 |
F-Score4
WACC6.85%
ROIC/WACC0.41
Cap/Depr(3y)94.72%
Cap/Depr(5y)101.28%
Cap/Sales(3y)8.08%
Cap/Sales(5y)8.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.53%
EPS 3Y-1.51%
EPS 5Y7.41%
EPS Q2Q%6.9%
EPS Next Y23.77%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
EPS Next 5Y15.81%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year18.14%
Revenue Next 2Y11.82%
Revenue Next 3Y9.25%
Revenue Next 5Y7.54%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year113.12%
EBIT Next 3Y37.36%
EBIT Next 5Y19.53%
FCF growth 1Y-68.24%
FCF growth 3Y-24.74%
FCF growth 5YN/A
OCF growth 1Y-32.76%
OCF growth 3Y-14.02%
OCF growth 5Y5.44%
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.
What is the valuation status of HEWLETT PACKARD ENTERPRISE (2HP.DE) stock?
ChartMill assigns a valuation rating of 6 / 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 3 / 10.
What is the valuation of HEWLETT PACKARD ENTERPRISE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (2HP.DE) is 11.3 and the Price/Book (PB) ratio is 1.17.
What is the earnings growth outlook for HEWLETT PACKARD ENTERPRISE?
The Earnings per Share (EPS) of HEWLETT PACKARD ENTERPRISE (2HP.DE) is expected to grow by 23.77% in the next year.