HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
19.8 EUR
-0.37 (-1.86%)
2HP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 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.
2HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2HP's Return On Assets of 1.47% is in line compared to the rest of the industry. 2HP outperforms 48.28% of its industry peers.
2HP has a Return On Equity of 4.66%. This is in the better half of the industry: 2HP outperforms 65.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.77%, 2HP is in line with its industry, outperforming 44.83% of the companies in the same industry.
2HP had an Average Return On Invested Capital over the past 3 years of 4.36%. This is significantly below the industry average of 19.94%.
| 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 has a Profit Margin (3.43%) which is in line with its industry peers.
In the last couple of years the Profit Margin of 2HP has grown nicely.
Looking at the Operating Margin, with a value of 6.15%, 2HP is in line with its industry, outperforming 58.62% of the companies in the same industry.
In the last couple of years the Operating Margin of 2HP has remained more or less at the same level.
2HP has a Gross Margin of 29.45%. This is comparable to the rest of the industry: 2HP outperforms 58.62% of its industry peers.
2HP'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2HP is destroying value.
2HP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 2HP has been increased compared to 5 years ago.
Compared to 1 year ago, 2HP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that 2HP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.79, 2HP perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
The Debt to FCF ratio of 2HP is 105.12, which is on the high side as it means it would take 2HP, 105.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 105.12, 2HP is doing worse than 68.97% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, 2HP perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.41
WACC6.83%
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.
The Current ratio of 2HP (0.95) is worse than 62.07% of its industry peers.
2HP has a Quick 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.
The Quick ratio of 2HP (0.69) is worse than 75.86% 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%.
2HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.15% yearly.
2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.97%.
2HP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.67% yearly.
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 10.57% yearly.
The Revenue is expected to grow by 9.76% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 12.07, 2HP is valued correctly.
86.21% of the companies in the same industry are more expensive than 2HP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. 2HP is valued rather cheaply when compared to this.
2HP is valuated reasonably with a Price/Forward Earnings ratio of 9.42.
Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than 75.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. 2HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
2HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 72.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 2HP is valued a bit more expensive than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 133.91 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.61
EPS Next 2Y10.65%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
2HP's Dividend Yield is rather good when compared to the industry average which is at 2.04. 2HP pays more dividend than 86.21% of the companies in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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
67.34% of the earnings are spent on dividend by 2HP. This is not a sustainable payout ratio.
2HP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.34%
EPS Next 2Y10.65%
EPS Next 3Y11.05%
FRA:2HP (11/7/2025, 7:00:00 PM)
19.8
-0.37 (-1.86%)
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 Cap26.13B
Revenue(TTM)33.08B
Net Income(TTM)1.14B
Analysts75.38
Price Target22.98 (16.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)5.26%
PT rev (3m)18.03%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.91 | ||
| P/FCF | 133.91 | ||
| P/OCF | 12.13 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)1.64
EY8.28%
EPS(NY)2.1
Fwd EY10.62%
FCF(TTM)0.15
FCFY0.75%
OCF(TTM)1.63
OCFY8.24%
SpS21.74
BVpS16.04
TBVpS-3.94
PEG (NY)N/A
PEG (5Y)5.61
Graham Number24.33
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 | 0.79 |
F-Score4
WACC6.83%
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-3.24%
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 / 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 4 / 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 -3.24% 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%.