HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2HP - US42824C1099 - Common Stock
17.912 EUR
-0.68 (-3.65%)
We assign a fundamental rating of 3 out of 10 to 2HP. 2HP was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. 2HP may be in some trouble as it scores bad on both profitability and health. 2HP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 2HP had positive earnings in the past year.
- In the past year 2HP had a positive cash flow from operations.
- Of the past 5 years 2HP 4 years were profitable.
- 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 63.64% of the companies in the same industry.
- 2HP has a Return On Equity of -0.24%. This is comparable to the rest of the industry: 2HP outperforms 51.52% of its industry peers.
- The Return On Invested Capital of 2HP (2.80%) is comparable to the rest of the industry.
- 2HP had an Average Return On Invested Capital over the past 3 years of 4.48%. This is significantly below the industry average of 17.59%.
| 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 of 4.79%. This is comparable to the rest of the industry: 2HP outperforms 51.52% of its industry peers.
- In the last couple of years the Operating Margin of 2HP has declined.
- Looking at the Gross Margin, with a value of 30.26%, 2HP is in line with its industry, outperforming 48.48% of the companies in the same 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 | 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
- 2HP has a worse debt/assets ratio than last year.
2.2 Solvency
- 2HP has an Altman-Z score of 0.81. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of 2HP (0.81) is worse than 66.67% of its industry peers.
- The Debt to FCF ratio of 2HP is 35.67, which is on the high side as it means it would take 2HP, 35.67 years of fcf income to pay off all of its debts.
- 2HP's Debt to FCF ratio of 35.67 is on the low side compared to the rest of the industry. 2HP is outperformed by 66.67% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that 2HP is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.72, 2HP is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.41
WACC6.79%
2.3 Liquidity
- 2HP has a Current Ratio of 1.01. This is a normal value and indicates that 2HP is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.01, 2HP is doing worse than 69.70% of the companies in the same industry.
- 2HP has a Quick Ratio of 1.01. 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 0.76, 2HP is not doing good in the industry: 72.73% 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
- The earnings per share for 2HP have decreased by -2.53% in the last year.
- 2HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- Looking at the last year, 2HP shows a quite strong growth in Revenue. The Revenue has grown by 13.84% in the last year.
- The Revenue has been growing slightly by 4.91% on average over the past years.
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
- Based on estimates for the next years, 2HP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.81% on average per year.
- 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 2Y11.81%
Revenue Next 3Y9.23%
Revenue Next 5Y7.54%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.86, which indicates a very decent valuation of 2HP.
- 78.79% of the companies in the same industry are more expensive than 2HP, based on the Price/Earnings ratio.
- 2HP is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.78, which indicates a very decent valuation of 2HP.
- Based on the Price/Forward Earnings ratio, 2HP is valued cheaper than 81.82% 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 | 10.86 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
- 69.70% of the companies in the same industry are more expensive than 2HP, based on the Enterprise Value to EBITDA ratio.
- 2HP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.12 | ||
| EV/EBITDA | 10.34 |
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.
- A more expensive valuation may be justified as 2HP's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)0.46
PEG (5Y)1.47
EPS Next 2Y19.75%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
- 2HP has a Yearly Dividend Yield of 2.67%.
- Compared to an average industry Dividend Yield of 0.90, 2HP pays a better dividend. On top of this 2HP pays more dividend than 87.88% of the companies listed in the same industry.
- 2HP's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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.
- The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1349.15%
EPS Next 2Y19.75%
EPS Next 3Y17.21%
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 10.86 and the Price/Book (PB) ratio is 1.12.
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.