HEWLETT PACKARD ENTERPRISE (HPE) Stock Fundamental Analysis
USA - NYSE:HPE - US42824C1099 - Common Stock
24.41 USD
+0.14 (+0.58%)
24.6 USD
+0.19 (+0.78%)
Taking everything into account, HPE scores 4 out of 10 in our fundamental rating. HPE was compared to 34 industry peers in the Technology Hardware, Storage & Peripherals industry. HPE has a medium profitability rating, but doesn't score so well on its financial health evaluation. HPE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HPE was profitable.
In the past year HPE had a positive cash flow from operations.
HPE had positive earnings in 4 of the past 5 years.
HPE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.47%, HPE is doing good in the industry, outperforming 64.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.66%, HPE is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.50%, HPE is doing good in the industry, outperforming 64.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HPE is significantly below the industry average of 15.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROIC | 3.5% |
ROA(3y)2.88%
ROA(5y)2.8%
ROE(3y)8.07%
ROE(5y)7.88%
ROIC(3y)5.52%
ROIC(5y)5.09%
1.3 Margins
With a decent Profit Margin value of 3.43%, HPE is doing good in the industry, outperforming 67.65% of the companies in the same industry.
HPE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.15%, HPE is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
In the last couple of years the Operating Margin of HPE has remained more or less at the same level.
With a Gross Margin value of 29.45%, HPE perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
HPE's Gross Margin has been stable in the last couple of years.
| 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), HPE is destroying value.
HPE has more shares outstanding than it did 1 year ago.
HPE has more shares outstanding than it did 5 years ago.
HPE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that HPE is in the distress zone and has some risk of bankruptcy.
HPE's Altman-Z score of 0.81 is in line compared to the rest of the industry. HPE outperforms 41.18% of its industry peers.
HPE has a debt to FCF ratio of 105.12. This is a negative value and a sign of low solvency as HPE would need 105.12 years to pay back of all of its debts.
HPE has a Debt to FCF ratio (105.12) which is comparable to the rest of the industry.
HPE has a Debt/Equity ratio of 0.76. This is a neutral value indicating HPE is somewhat dependend on debt financing.
HPE has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.48
WACC7.36%
2.3 Liquidity
HPE has a Current Ratio of 0.95. This is a bad value and indicates that HPE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, HPE is doing worse than 73.53% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that HPE may have some problems paying its short term obligations.
HPE's Quick ratio of 0.69 is on the low side compared to the rest of the industry. HPE is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
HPE 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, HPE 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, HPE shows a quite strong growth in Revenue. The Revenue has grown by 13.97% in the last year.
Measured over the past years, HPE 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
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
HPE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.76% yearly.
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
Based on the Price/Earnings ratio of 12.92, the valuation of HPE can be described as correct.
Based on the Price/Earnings ratio, HPE is valued cheaper than 94.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of HPE to the average of the S&P500 Index (26.19), we can say HPE is valued rather cheaply.
The Price/Forward Earnings ratio is 10.07, which indicates a very decent valuation of HPE.
HPE's Price/Forward Earnings ratio is rather cheap when compared to the industry. HPE is cheaper than 88.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPE is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 143.15 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
HPE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6
EPS Next 2Y10.65%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
HPE has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 1.86, HPE pays a better dividend. On top of this HPE pays more dividend than 91.18% of the companies listed in the same industry.
HPE's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of HPE has a limited annual growth rate of 3.20%.
HPE has been paying a dividend for at least 10 years, so it has a reliable track record.
HPE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.2%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
67.34% of the earnings are spent on dividend by HPE. This is not a sustainable payout ratio.
The dividend of HPE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.34%
EPS Next 2Y10.65%
EPS Next 3Y11.05%
24.41
+0.14 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change-0.48%
Ins Owners0.36%
Ins Owner Change-7.96%
Market Cap32.21B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts76
Price Target25.94 (6.27%)
Short Float %3.36%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend0.52
Dividend Growth(5Y)3.2%
DP67.34%
Div Incr Years2
Div Non Decr Years9
Ex-Date
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)2.19%
PT rev (3m)15.94%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)7.33%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.97 | ||
| P/FCF | 143.15 | ||
| P/OCF | 12.97 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.92 |
EPS(TTM)1.89
EY7.74%
EPS(NY)2.42
Fwd EY9.93%
FCF(TTM)0.17
FCFY0.7%
OCF(TTM)1.88
OCFY7.71%
SpS25.07
BVpS18.49
TBVpS-4.55
PEG (NY)N/A
PEG (5Y)6
Graham Number28.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 4.66% | ||
| ROCE | 4.07% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 10.81% | ||
| 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)5.52%
ROIC(5y)5.09%
ROICexc(3y)6.82%
ROICexc(5y)6.08%
ROICexgc(3y)16.7%
ROICexgc(5y)14.78%
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 | 0.81 |
F-Score4
WACC7.36%
ROIC/WACC0.48
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 / HPE FAQ
What is the fundamental rating for HPE stock?
ChartMill assigns a fundamental rating of 4 / 10 to HPE.
What is the valuation status for HPE stock?
ChartMill assigns a valuation rating of 6 / 10 to HEWLETT PACKARD ENTERPRISE (HPE). This can be considered as Fairly Valued.
What is the profitability of HPE stock?
HEWLETT PACKARD ENTERPRISE (HPE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of HEWLETT PACKARD ENTERPRISE (HPE) stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (HPE) is 12.92 and the Price/Book (PB) ratio is 1.32.
What is the financial health of HEWLETT PACKARD ENTERPRISE (HPE) stock?
The financial health rating of HEWLETT PACKARD ENTERPRISE (HPE) is 1 / 10.