HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
Europe - FRA:2HP - US42824C1099 - Common Stock
20.64 EUR
+0.16 (+0.76%)
We assign a fundamental rating of 3 out of 10 to 2HP. 2HP was compared to 28 industry peers in the Technology Hardware, Storage & Peripherals industry. While 2HP is still in line with the averages on profitability rating, there are concerns on its financial health. 2HP is not valued too expensively and it also shows a decent growth rate. Finally 2HP also has an excellent dividend rating.
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.
Of the past 5 years 2HP 4 years were profitable.
Each year in the past 5 years 2HP had a positive operating cash flow.
1.2 Ratios
2HP's Return On Assets of 1.47% is in line compared to the rest of the industry. 2HP outperforms 53.57% of its industry peers.
With a decent Return On Equity value of 4.66%, 2HP is doing good in the industry, outperforming 64.29% of the companies in the same industry.
2HP's Return On Invested Capital of 2.77% is in line compared to the rest of the industry. 2HP outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 15.60%.
| 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
The Profit Margin of 2HP (3.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 2HP has grown nicely.
2HP has a Operating Margin of 6.15%. This is in the better half of the industry: 2HP outperforms 67.86% of its industry peers.
In the last couple of years the Operating Margin of 2HP has remained more or less at the same level.
With a Gross Margin value of 29.45%, 2HP 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 2HP has remained more or less at the same level.
| 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.
2HP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 2HP is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.81, 2HP is doing worse than 60.71% 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.
2HP has a Debt to FCF ratio of 105.12. This is in the lower half of the industry: 2HP underperforms 60.71% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
The Debt to Equity ratio of 2HP (0.76) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.4
WACC6.94%
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.
2HP's Current ratio of 0.95 is on the low side compared to the rest of the industry. 2HP is outperformed by 67.86% 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.
2HP has a Quick ratio of 0.69. This is in the lower half of the industry: 2HP underperforms 78.57% 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%.
Measured over the past 5 years, 2HP shows a small growth in Earnings Per Share. The EPS has been growing by 2.15% on average per year.
2HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.97%.
Measured over the past years, 2HP 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
2HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.81% yearly.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y-3.14%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
EPS Next 5Y5.81%
Revenue Next Year15.29%
Revenue Next 2Y16.12%
Revenue Next 3Y11.6%
Revenue Next 5Y6.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
2HP is valuated correctly with a Price/Earnings ratio of 12.82.
Based on the Price/Earnings ratio, 2HP is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 2HP to the average of the S&P500 Index (27.67), we can say 2HP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.07, the valuation of 2HP can be described as reasonable.
Based on the Price/Forward Earnings ratio, 2HP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (23.13), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2HP is valued a bit cheaper than 64.29% of the companies in the same industry.
60.71% of the companies in the same industry are cheaper than 2HP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 141.89 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.96
EPS Next 2Y10.15%
EPS Next 3Y10.54%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 5.61%, which is a nice return.
2HP's Dividend Yield is rather good when compared to the industry average which is at 2.53. 2HP pays more dividend than 100.00% of the companies in the same industry.
2HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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.
The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.34%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
FRA:2HP (9/29/2025, 7:00:00 PM)
20.64
+0.16 (+0.76%)
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 Cap27.23B
Analysts76.67
Price Target21.84 (5.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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)7.16%
PT rev (3m)19.98%
EPS NQ rev (1m)3.54%
EPS NQ rev (3m)6.65%
EPS NY rev (1m)2.47%
EPS NY rev (3m)6.67%
Revenue NQ rev (1m)5.71%
Revenue NQ rev (3m)15.41%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)5.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.97 | ||
| P/FCF | 141.89 | ||
| P/OCF | 12.85 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.86 |
EPS(TTM)1.61
EY7.8%
EPS(NY)2.05
Fwd EY9.93%
FCF(TTM)0.15
FCFY0.7%
OCF(TTM)1.61
OCFY7.78%
SpS21.38
BVpS15.78
TBVpS-3.88
PEG (NY)N/A
PEG (5Y)5.96
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%
ROICexcg growth 3Y10.99%
ROICexcg 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
WACC6.94%
ROIC/WACC0.4
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-3.14%
EPS Next 2Y10.15%
EPS Next 3Y10.54%
EPS Next 5Y5.81%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year15.29%
Revenue Next 2Y16.12%
Revenue Next 3Y11.6%
Revenue Next 5Y6.77%
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%