HP INC (1HPQ.MI) Stock Fundamental Analysis
BIT:1HPQ - Euronext Milan - US40434L1052 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1HPQ. 1HPQ was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPQ has a great profitability rating, there are quite some concerns on its financial health. 1HPQ has a bad growth rate and is valued cheaply. 1HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1HPQ had positive earnings in the past year.
1HPQ had a positive operating cash flow in the past year.
Each year in the past 5 years 1HPQ has been profitable.
1HPQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1HPQ (6.49%) is better than 72.41% of its industry peers.
1HPQ has a better Return On Invested Capital (26.59%) than 89.66% of its industry peers.
1HPQ had an Average Return On Invested Capital over the past 3 years of 31.68%. This is significantly above the industry average of 17.48%.
The last Return On Invested Capital (26.59%) for 1HPQ is well below the 3 year average (31.68%), which needs to be investigated, but indicates that 1HPQ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | N/A | ||
| ROIC | 26.59% |
ROA(3y)7.97%
ROA(5y)9.81%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.51%
1.3 Margins
1HPQ's Profit Margin of 4.64% is fine compared to the rest of the industry. 1HPQ outperforms 62.07% of its industry peers.
1HPQ's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.08%, 1HPQ is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
In the last couple of years the Operating Margin of 1HPQ has grown nicely.
The Gross Margin of 1HPQ (21.15%) is worse than 68.97% of its industry peers.
1HPQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | 4.64% | ||
| GM | 21.15% |
OM growth 3Y-4.29%
OM growth 5Y1.94%
PM growth 3Y-20.49%
PM growth 5Y-0.69%
GM growth 3Y1.46%
GM growth 5Y3.02%
2. Health
2.1 Basic Checks
1HPQ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1HPQ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1HPQ has less shares outstanding
1HPQ has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1HPQ is 4.04, which is a neutral value as it means it would take 1HPQ, 4.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1HPQ (4.04) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | N/A |
ROIC/WACC3.58
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.73 indicates that 1HPQ may have some problems paying its short term obligations.
With a Current ratio value of 0.73, 1HPQ is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
1HPQ has a Quick Ratio of 0.73. This is a bad value and indicates that 1HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
1HPQ's Quick ratio of 0.42 is on the low side compared to the rest of the industry. 1HPQ is outperformed by 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
1HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.31%.
The Earnings Per Share has been growing by 8.74% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.45% in the past year.
The Revenue has been decreasing by -1.84% on average over the past years.
EPS 1Y (TTM)-5.31%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-13.41%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
3.2 Future
The Earnings Per Share is expected to grow by 2.51% on average over the next years.
The Revenue is expected to grow by 1.01% on average over the next years.
EPS Next Y-7.19%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
EPS Next 5Y2.51%
Revenue Next Year2.17%
Revenue Next 2Y1.86%
Revenue Next 3Y1.91%
Revenue Next 5Y1.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 7.99, the valuation of 1HPQ can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 93.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, 1HPQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of 1HPQ can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 86.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, 1HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
75.86% of the companies in the same industry are more expensive than 1HPQ, based on the Enterprise Value to EBITDA ratio.
1HPQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1HPQ is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
1HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y0.15%
EPS Next 3Y2.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, 1HPQ is a good candidate for dividend investing.
1HPQ's Dividend Yield is rather good when compared to the industry average which is at 2.17. 1HPQ pays more dividend than 96.55% of the companies in the same industry.
1HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
On average, the dividend of 1HPQ grows each year by 11.65%, which is quite nice.
Dividend Growth(5Y)11.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1HPQ pays out 42.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1HPQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.79%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
BIT:1HPQ (7/4/2025, 7:00:00 PM)
21.97
-3.75 (-14.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.45%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap20.64B
Analysts66.67
Price Target24.05 (9.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend0.95
Dividend Growth(5Y)11.65%
DP42.79%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.03%
Min EPS beat(2)-12.57%
Max EPS beat(2)-1.5%
EPS beat(4)0
Avg EPS beat(4)-4.86%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.96%
EPS beat(8)1
Avg EPS beat(8)-2.77%
EPS beat(12)3
Avg EPS beat(12)-1.65%
EPS beat(16)7
Avg EPS beat(16)-0.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)-19.54%
PT rev (3m)-30.8%
EPS NQ rev (1m)-15.99%
EPS NQ rev (3m)-20.47%
EPS NY rev (1m)-10.07%
EPS NY rev (3m)-13.01%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.44 | ||
| P/FCF | 9.07 | ||
| P/OCF | 6.97 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.89 |
EPS(TTM)2.75
EY12.52%
EPS(NY)2.91
Fwd EY13.25%
FCF(TTM)2.42
FCFY11.03%
OCF(TTM)3.15
OCFY14.35%
SpS49.48
BVpS-1.16
TBVpS-9.1
PEG (NY)N/A
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | N/A | ||
| ROCE | 31.41% | ||
| ROIC | 26.59% | ||
| ROICexc | 34.21% | ||
| ROICexgc | 406.86% | ||
| OM | 7.08% | ||
| PM (TTM) | 4.64% | ||
| GM | 21.15% | ||
| FCFM | 4.9% |
ROA(3y)7.97%
ROA(5y)9.81%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.51%
ROICexc(3y)43.22%
ROICexc(5y)62.78%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.59%
ROCE(5y)43.81%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.53%
ROICexc growth 5Y-14.33%
OM growth 3Y-4.29%
OM growth 5Y1.94%
PM growth 3Y-20.49%
PM growth 5Y-0.69%
GM growth 3Y1.46%
GM growth 5Y3.02%
F-Score5
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 97.8% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.16% | ||
| Profit Quality | 105.64% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | N/A |
F-Score5
WACC7.43%
ROIC/WACC3.58
Cap/Depr(3y)81.46%
Cap/Depr(5y)78.41%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.09%
Profit Quality(3y)107.26%
Profit Quality(5y)108.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.31%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-13.41%
EPS Next Y-7.19%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
EPS Next 5Y2.51%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
Revenue Next Year2.17%
Revenue Next 2Y1.86%
Revenue Next 3Y1.91%
Revenue Next 5Y1.01%
EBIT growth 1Y-10.66%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year13.8%
EBIT Next 3Y4.08%
EBIT Next 5Y0.31%
FCF growth 1Y17.81%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y18.54%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%