HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
FRA:2HP - Deutsche Boerse Ag - US42824C1099 - Common Stock - Currency: EUR
Overall 2HP gets a fundamental rating of 4 out of 10. We evaluated 2HP against 29 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of 2HP while its profitability can be described as average. 2HP has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years 2HP had a positive operating cash flow.
1.2 Ratios
2HP's Return On Assets of 2.02% is in line compared to the rest of the industry. 2HP outperforms 55.17% of its industry peers.
With a decent Return On Equity value of 5.75%, 2HP is doing good in the industry, outperforming 62.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.59%, 2HP is in line with its industry, outperforming 51.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 17.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 5.75% | ||
| ROIC | 3.59% |
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 (4.34%) which is in line with its industry peers.
2HP's Profit Margin has improved in the last couple of years.
2HP has a Operating Margin of 6.98%. This is in the better half of the industry: 2HP outperforms 68.97% of its industry peers.
2HP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.05%, 2HP is in line with its industry, outperforming 48.28% of the companies in the same industry.
2HP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.05% |
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
2HP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 2HP has more shares outstanding
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
2HP has an Altman-Z score of 1.01. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
2HP has a Altman-Z score of 1.01. This is in the lower half of the industry: 2HP underperforms 62.07% of its industry peers.
2HP has a debt to FCF ratio of 163.83. This is a negative value and a sign of low solvency as 2HP would need 163.83 years to pay back of all of its debts.
2HP has a Debt to FCF ratio (163.83) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that 2HP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, 2HP perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 163.83 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.52
WACC6.92%
2.3 Liquidity
2HP has a Current Ratio of 1.29. This is a normal value and indicates that 2HP is financially healthy and should not expect problems in meeting its short term obligations.
2HP has a worse Current ratio (1.29) than 65.52% of its industry peers.
2HP has a Quick Ratio of 1.29. This is a bad value and indicates that 2HP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, 2HP is in line with its industry, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
2HP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.09%.
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.
Looking at the last year, 2HP shows a quite strong growth in Revenue. The Revenue has grown by 11.79% in the last year.
The Revenue has been growing slightly by 0.67% on average over the past years.
EPS 1Y (TTM)2.09%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%5.87%
3.2 Future
Based on estimates for the next years, 2HP will show a small growth in Earnings Per Share. The EPS will grow by 5.81% on average per year.
Based on estimates for the next years, 2HP will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y-8.82%
EPS Next 2Y4.87%
EPS Next 3Y7.75%
EPS Next 5Y5.81%
Revenue Next Year11.18%
Revenue Next 2Y9.54%
Revenue Next 3Y7.77%
Revenue Next 5Y5.7%
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 10.75 indicates a reasonable valuation of 2HP.
Based on the Price/Earnings ratio, 2HP is valued cheaper than 86.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of 2HP to the average of the S&P500 Index (27.50), we can say 2HP is valued rather cheaply.
2HP is valuated reasonably with a Price/Forward Earnings ratio of 9.61.
Based on the Price/Forward Earnings ratio, 2HP is valued cheaper than 82.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. 2HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
75.86% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 256.54 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5
EPS Next 2Y4.87%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.44%. 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 2.17. 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
53.50% of the earnings are spent on dividend by 2HP. This is a bit on the high side, but may be sustainable.
The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.5%
EPS Next 2Y4.87%
EPS Next 3Y7.75%
FRA:2HP (7/18/2025, 7:00:00 PM)
18.066
+0.84 (+4.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.27%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap23.71B
Analysts77
Price Target18.2 (0.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.45
Dividend Growth(5Y)3.2%
DP53.5%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.04%
Min EPS beat(2)-1.9%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)5.7%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)5.15%
EPS beat(12)10
Avg EPS beat(12)5.28%
EPS beat(16)13
Avg EPS beat(16)5.62%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.42%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)1.45%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)0.07%
Revenue beat(16)5
Avg Revenue beat(16)-0.37%
PT rev (1m)5.58%
PT rev (3m)-2.88%
EPS NQ rev (1m)1%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)4.54%
Revenue NY rev (1m)2.54%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 9.61 | ||
| P/S | 0.87 | ||
| P/FCF | 256.54 | ||
| P/OCF | 11.77 | ||
| P/B | 1.15 | ||
| P/tB | 4.14 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)1.68
EY9.3%
EPS(NY)1.88
Fwd EY10.41%
FCF(TTM)0.07
FCFY0.39%
OCF(TTM)1.54
OCFY8.5%
SpS20.83
BVpS15.71
TBVpS4.36
PEG (NY)N/A
PEG (5Y)5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 5.75% | ||
| ROCE | 5.1% | ||
| ROIC | 3.59% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 10.8% | ||
| OM | 6.98% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.05% | ||
| FCFM | 0.34% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 163.83 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 91.3% | ||
| Cap/Sales | 7.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.19% | ||
| Profit Quality | 7.8% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.01 |
F-Score4
WACC6.92%
ROIC/WACC0.52
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)2.09%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%-9.52%
EPS Next Y-8.82%
EPS Next 2Y4.87%
EPS Next 3Y7.75%
EPS Next 5Y5.81%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%5.87%
Revenue Next Year11.18%
Revenue Next 2Y9.54%
Revenue Next 3Y7.77%
Revenue Next 5Y5.7%
EBIT growth 1Y-0.76%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year67.25%
EBIT Next 3Y27.85%
EBIT Next 5Y23.39%
FCF growth 1Y-90.23%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y-46.37%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%