HEWLETT PACKARD ENTERPRISE (1HPE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPE - US42824C1099 - Common Stock
21 EUR
+0.48 (+2.34%)
Taking everything into account, 1HPE scores 3 out of 10 in our fundamental rating. 1HPE was compared to 30 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPE has a bad profitability rating. Also its financial health evaluation is rather negative. 1HPE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1HPE was profitable.
In the past year 1HPE had a positive cash flow from operations.
Of the past 5 years 1HPE 4 years were profitable.
In the past 5 years 1HPE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.08%, 1HPE is doing worse than 63.33% of the companies in the same industry.
The Return On Equity of 1HPE (-0.24%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.80%, 1HPE perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
1HPE had an Average Return On Invested Capital over the past 3 years of 4.48%. This is significantly below the industry average of 15.69%.
| 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
With a Operating Margin value of 4.79%, 1HPE perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
In the last couple of years the Operating Margin of 1HPE has declined.
With a Gross Margin value of 30.26%, 1HPE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 1HPE 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), 1HPE is destroying value.
The number of shares outstanding for 1HPE has been increased compared to 1 year ago.
1HPE has more shares outstanding than it did 5 years ago.
1HPE has a worse debt/assets ratio than last year.
2.2 Solvency
1HPE has an Altman-Z score of 0.86. This is a bad value and indicates that 1HPE is not financially healthy and even has some risk of bankruptcy.
1HPE has a worse Altman-Z score (0.86) than 63.33% of its industry peers.
1HPE has a debt to FCF ratio of 35.67. This is a negative value and a sign of low solvency as 1HPE would need 35.67 years to pay back of all of its debts.
1HPE has a worse Debt to FCF ratio (35.67) than 70.00% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that 1HPE is somewhat dependend on debt financing.
The Debt to Equity ratio of 1HPE (0.72) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 35.67 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.4
WACC6.94%
2.3 Liquidity
1HPE has a Current Ratio of 1.01. This is a normal value and indicates that 1HPE is financially healthy and should not expect problems in meeting its short term obligations.
1HPE's Current ratio of 1.01 is on the low side compared to the rest of the industry. 1HPE is outperformed by 73.33% of its industry peers.
1HPE has a Quick Ratio of 1.01. This is a bad value and indicates that 1HPE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.76, 1HPE is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for 1HPE have decreased by -2.53% in the last year.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
Looking at the last year, 1HPE 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
1HPE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.07% yearly.
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
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
A Price/Earnings ratio of 12.80 indicates a correct valuation of 1HPE.
Based on the Price/Earnings ratio, 1HPE is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1HPE to the average of the S&P500 Index (26.51), we can say 1HPE is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.31, the valuation of 1HPE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1HPE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1HPE to the average of the S&P500 Index (23.13), we can say 1HPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
1HPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1HPE is cheaper than 66.67% of the companies in the same industry.
60.00% of the companies in the same industry are cheaper than 1HPE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.93 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The 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 1HPE's earnings are expected to grow with 16.44% in the coming years.
PEG (NY)0.53
PEG (5Y)1.73
EPS Next 2Y20.03%
EPS Next 3Y16.44%
5. Dividend
5.1 Amount
1HPE has a Yearly Dividend Yield of 2.38%.
Compared to an average industry Dividend Yield of 0.97, 1HPE pays a better dividend. On top of this 1HPE pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, 1HPE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of 1HPE has a limited annual growth rate of 4.91%.
Dividend Growth(5Y)4.91%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1HPE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
1HPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1349.15%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
BIT:1HPE (12/23/2025, 7:00:00 PM)
21
+0.48 (+2.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap27.71B
Revenue(TTM)34.30B
Net Income(TTM)-59.00M
Analysts74.62
Price Target22.32 (6.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend0.52
Dividend Growth(5Y)4.91%
DP-1349.15%
Div Incr Years0
Div Non Decr Years0
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)0.92%
PT rev (3m)19.28%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)11.98%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)15.7%
Revenue NQ rev (1m)-5.72%
Revenue NQ rev (3m)14.1%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)18.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.95 | ||
| P/FCF | 51.93 | ||
| P/OCF | 11.15 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)1.64
EY7.81%
EPS(NY)2.04
Fwd EY9.7%
FCF(TTM)0.4
FCFY1.93%
OCF(TTM)1.88
OCFY8.97%
SpS22.12
BVpS15.92
TBVpS-3.52
PEG (NY)0.53
PEG (5Y)1.73
Graham Number24.24
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 | 0.86 |
F-Score4
WACC6.94%
ROIC/WACC0.4
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 Y24.04%
EPS Next 2Y20.03%
EPS Next 3Y16.44%
EPS Next 5Y15.07%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y6.37%
Revenue growth 5Y4.91%
Sales Q2Q%14.44%
Revenue Next Year17.95%
Revenue Next 2Y11.47%
Revenue Next 3Y9.35%
Revenue Next 5Y8.07%
EBIT growth 1Y-34.08%
EBIT growth 3Y-9.62%
EBIT growth 5Y0.7%
EBIT Next Year108.98%
EBIT Next 3Y38.25%
EBIT Next 5YN/A
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 / 1HPE.MI FAQ
What is the fundamental rating for 1HPE stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1HPE.MI.
What is the valuation status of HEWLETT PACKARD ENTERPRISE (1HPE.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to HEWLETT PACKARD ENTERPRISE (1HPE.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for HEWLETT PACKARD ENTERPRISE?
HEWLETT PACKARD ENTERPRISE (1HPE.MI) has a profitability rating of 3 / 10.
What are the PE and PB ratios of HEWLETT PACKARD ENTERPRISE (1HPE.MI) stock?
The Price/Earnings (PE) ratio for HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 12.8 and the Price/Book (PB) ratio is 1.32.
How sustainable is the dividend of HEWLETT PACKARD ENTERPRISE (1HPE.MI) stock?
The dividend rating of HEWLETT PACKARD ENTERPRISE (1HPE.MI) is 4 / 10 and the dividend payout ratio is -1349.15%.