HEWLETT PACKARD ENTERPRISE (2HP.DE) Stock Fundamental Analysis
FRA:2HP - Deutsche Boerse Ag - US42824C1099 - Common Stock - Currency: EUR
Taking everything into account, 2HP scores 5 out of 10 in our fundamental rating. 2HP was compared to 28 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 has a correct valuation and a medium growth rate. 2HP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
2HP had positive earnings in the past year.
In the past year 2HP had a positive cash flow from operations.
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 3.93% is fine compared to the rest of the industry. 2HP outperforms 64.29% of its industry peers.
2HP has a Return On Equity of 10.96%. This is in the better half of the industry: 2HP outperforms 75.00% of its industry peers.
The Return On Invested Capital of 2HP (3.69%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for 2HP is significantly below the industry average of 16.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 10.96% | ||
| ROIC | 3.69% |
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
Looking at the Profit Margin, with a value of 8.85%, 2HP is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
2HP's Profit Margin has improved in the last couple of years.
2HP's Operating Margin of 7.75% is fine compared to the rest of the industry. 2HP outperforms 75.00% of its industry peers.
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 (31.12%) which 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 | 7.75% | ||
| PM (TTM) | 8.85% | ||
| GM | 31.12% |
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.
The number of shares outstanding for 2HP has been increased compared to 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 0.97. 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 0.97, 2HP is doing worse than 64.29% of the companies in the same industry.
The Debt to FCF ratio of 2HP is 10.85, which is on the high side as it means it would take 2HP, 10.85 years of fcf income to pay off all of its debts.
2HP has a better Debt to FCF ratio (10.85) than 64.29% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 2HP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, 2HP is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 10.85 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.54
WACC6.89%
2.3 Liquidity
2HP has a Current Ratio of 1.33. This is a normal value and indicates that 2HP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, 2HP is doing worse than 60.71% of the companies in the same industry.
2HP has a Quick Ratio of 1.33. 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 0.98. This is in the lower half of the industry: 2HP underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for 2HP have decreased by -1.00% in the last year.
The Earnings Per Share has been growing slightly by 2.15% on average over the past years.
The Revenue has grown by 11.20% in the past year. This is quite good.
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%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%2.08%
Revenue 1Y (TTM)11.2%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%16.27%
3.2 Future
2HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.87% yearly.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y-8.78%
EPS Next 2Y2.12%
EPS Next 3Y6.25%
EPS Next 5Y3.87%
Revenue Next Year8.41%
Revenue Next 2Y6.91%
Revenue Next 3Y5.77%
Revenue Next 5Y5.51%
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.
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
The Price/Earnings ratio is 8.93, which indicates a very decent valuation of 2HP.
Compared to the rest of the industry, the Price/Earnings ratio of 2HP indicates a rather cheap valuation: 2HP is cheaper than 82.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. 2HP is valued rather cheaply when compared to this.
2HP is valuated reasonably with a Price/Forward Earnings ratio of 8.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2HP indicates a somewhat cheap valuation: 2HP is cheaper than 67.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 2HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
2HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 75.00% of the companies in the same industry.
2HP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 2HP is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.17 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
2HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.15
EPS Next 2Y2.12%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, 2HP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.25, 2HP pays a better dividend. On top of this 2HP pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 2HP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of 2HP has a limited annual growth rate of 3.20%.
Dividend Growth(5Y)3.2%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
2HP pays out 25.42% of its income as dividend. This is a sustainable payout ratio.
The dividend of 2HP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.42%
EPS Next 2Y2.12%
EPS Next 3Y6.25%
FRA:2HP (5/28/2025, 7:00:00 PM)
15.71
-0.1 (-0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.61%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap20.64B
Analysts74.74
Price Target16.39 (4.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend0.46
Dividend Growth(5Y)3.2%
DP25.42%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-1.9%
Max EPS beat(2)2.93%
EPS beat(4)3
Avg EPS beat(4)3.44%
Min EPS beat(4)-1.9%
Max EPS beat(4)6.92%
EPS beat(8)7
Avg EPS beat(8)3.94%
EPS beat(12)9
Avg EPS beat(12)3.64%
EPS beat(16)13
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)4.54%
Revenue beat(8)2
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-0.22%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)-12.54%
PT rev (3m)-30.55%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-35.9%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-15.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 8.61 | ||
| P/S | 0.75 | ||
| P/FCF | 14.17 | ||
| P/OCF | 6.01 | ||
| P/B | 0.93 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)1.76
EY11.2%
EPS(NY)1.82
Fwd EY11.61%
FCF(TTM)1.11
FCFY7.06%
OCF(TTM)2.61
OCFY16.64%
SpS21.01
BVpS16.97
TBVpS4.46
PEG (NY)N/A
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 10.96% | ||
| ROCE | 5.33% | ||
| ROIC | 3.69% | ||
| ROICexc | 5.2% | ||
| ROICexgc | 12% | ||
| OM | 7.75% | ||
| PM (TTM) | 8.85% | ||
| GM | 31.12% | ||
| FCFM | 5.28% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 10.85 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 89.35% | ||
| Cap/Sales | 7.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 59.6% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.97 |
F-Score5
WACC6.89%
ROIC/WACC0.54
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%
EPS 3Y0.17%
EPS 5Y2.15%
EPS Q2Q%2.08%
EPS Next Y-8.78%
EPS Next 2Y2.12%
EPS Next 3Y6.25%
EPS Next 5Y3.87%
Revenue 1Y (TTM)11.2%
Revenue growth 3Y2.74%
Revenue growth 5Y0.67%
Sales Q2Q%16.27%
Revenue Next Year8.41%
Revenue Next 2Y6.91%
Revenue Next 3Y5.77%
Revenue Next 5Y5.51%
EBIT growth 1Y4.09%
EBIT growth 3Y5.66%
EBIT growth 5Y0.14%
EBIT Next Year67.25%
EBIT Next 3Y27.85%
EBIT Next 5Y23.39%
FCF growth 1Y200.73%
FCF growth 3Y-16.32%
FCF growth 5Y11.59%
OCF growth 1Y1.22%
OCF growth 3Y-9.57%
OCF growth 5Y1.66%