HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
FRA:2HP - US42824C1099 - Common Stock
20.435 EUR
+0.51 (+2.59%)
Taking everything into account, 2HP scores 4 out of 10 in our fundamental rating. 2HP was compared to 28 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.
In the past year 2HP had a positive cash flow from operations.
Of the past 5 years 2HP 4 years were profitable.
2HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.47%, 2HP is in line with its industry, outperforming 53.57% of the companies in the same industry.
The Return On Equity of 2HP (4.66%) is better than 64.29% 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 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2HP is significantly below the industry average of 16.90%.
| 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 of 3.43%. This is comparable to the rest of the industry: 2HP outperforms 57.14% of its industry peers.
2HP's Profit Margin has improved in the last couple of years.
2HP's Operating Margin of 6.15% is fine compared to the rest of the industry. 2HP outperforms 67.86% of its industry peers.
2HP's Operating Margin has been stable in the last couple of years.
The Gross Margin of 2HP (29.45%) is comparable to the rest of the industry.
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
2HP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 2HP has been increased compared to 1 year ago.
2HP has more shares outstanding than it did 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 0.79. This is a bad value and indicates that 2HP is not financially healthy and even has some risk of bankruptcy.
2HP has a worse Altman-Z score (0.79) than 60.71% of its industry peers.
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 comparable to the rest of the industry: 2HP outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 2HP is somewhat dependend on debt financing.
2HP's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. 2HP is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 105.12 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.41
WACC6.82%
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 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.
With a Quick ratio value of 0.69, 2HP is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| 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.
Looking at the last year, 2HP shows a quite strong growth in Revenue. The Revenue has grown by 13.97% in the last year.
The Revenue has been growing slightly by 0.67% on average over the past years.
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 5.81% on average over the next years.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y-5.47%
EPS Next 2Y5.97%
EPS Next 3Y9.02%
EPS Next 5Y5.81%
Revenue Next Year12.42%
Revenue Next 2Y11.41%
Revenue Next 3Y9.42%
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.
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
2HP is valuated correctly with a Price/Earnings ratio of 12.69.
2HP's Price/Earnings ratio is rather cheap when compared to the industry. 2HP is cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of 2HP to the average of the S&P500 Index (27.07), we can say 2HP is valued rather cheaply.
A Price/Forward Earnings ratio of 10.78 indicates a reasonable valuation of 2HP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 2HP to the average of the S&P500 Index (22.59), we can say 2HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 64.29% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2HP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 139.77 | ||
| EV/EBITDA | 10.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.9
EPS Next 2Y5.97%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
2HP has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.97, 2HP pays a better dividend. On top of this 2HP pays more dividend than 85.71% of the companies listed in the same industry.
2HP's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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 2Y5.97%
EPS Next 3Y9.02%
FRA:2HP (9/9/2025, 7:00:00 PM)
20.435
+0.51 (+2.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.51%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap26.82B
Analysts76.67
Price Target20.38 (-0.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)8.93%
Min EPS beat(2)1.9%
Max EPS beat(2)15.97%
EPS beat(4)3
Avg EPS beat(4)4.72%
Min EPS beat(4)-1.9%
Max EPS beat(4)15.97%
EPS beat(8)7
Avg EPS beat(8)4.87%
EPS beat(12)11
Avg EPS beat(12)5.51%
EPS beat(16)13
Avg EPS beat(16)5.13%
Revenue beat(2)2
Avg Revenue beat(2)3.94%
Min Revenue beat(2)1.42%
Max Revenue beat(2)6.46%
Revenue beat(4)3
Avg Revenue beat(4)2.21%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)6.46%
Revenue beat(8)4
Avg Revenue beat(8)0.72%
Revenue beat(12)6
Avg Revenue beat(12)0.71%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)4.64%
PT rev (3m)18.21%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-2.98%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)9.32%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.95 | ||
| P/FCF | 139.77 | ||
| P/OCF | 12.66 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)1.61
EY7.88%
EPS(NY)1.9
Fwd EY9.28%
FCF(TTM)0.15
FCFY0.72%
OCF(TTM)1.61
OCFY7.9%
SpS21.49
BVpS15.86
TBVpS-3.9
PEG (NY)N/A
PEG (5Y)5.9
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 | 0.79 |
F-Score4
WACC6.82%
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-5.47%
EPS Next 2Y5.97%
EPS Next 3Y9.02%
EPS Next 5Y5.81%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%18.5%
Revenue Next Year12.42%
Revenue Next 2Y11.41%
Revenue Next 3Y9.42%
Revenue Next 5Y6.77%
EBIT growth 1Y-10.43%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year71.21%
EBIT Next 3Y29.44%
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%