HP INC (1HPQ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPQ - US40434L1052 - Common Stock
21.13 EUR
+1.58 (+8.09%)
Taking everything into account, 1HPQ scores 5 out of 10 in our fundamental rating. 1HPQ was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPQ is still in line with the averages on profitability rating, there are concerns on its financial health. 1HPQ has a bad growth rate and is valued cheaply. Finally 1HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1HPQ was profitable.
In the past year 1HPQ had a positive cash flow from operations.
Each year in the past 5 years 1HPQ has been profitable.
In the past 5 years 1HPQ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.05%, 1HPQ is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.99%, 1HPQ belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
1HPQ had an Average Return On Invested Capital over the past 3 years of 29.86%. This is significantly above the industry average of 16.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 25.99% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.86%
ROIC(5y)35.59%
1.3 Margins
1HPQ has a better Profit Margin (4.57%) than 67.65% of its industry peers.
1HPQ's Profit Margin has declined in the last couple of years.
The Operating Margin of 1HPQ (6.55%) is better than 70.59% of its industry peers.
In the last couple of years the Operating Margin of 1HPQ has remained more or less at the same level.
With a Gross Margin value of 20.60%, 1HPQ is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of 1HPQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% |
OM growth 3Y-6.95%
OM growth 5Y-1.18%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
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.
The number of shares outstanding for 1HPQ has been reduced compared to 5 years ago.
Compared to 1 year ago, 1HPQ has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1HPQ is 3.45, which is a good value as it means it would take 1HPQ, 3.45 years of fcf income to pay off all of its debts.
1HPQ's Debt to FCF ratio of 3.45 is fine compared to the rest of the industry. 1HPQ outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC3.53
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.77 indicates that 1HPQ may have some problems paying its short term obligations.
With a Current ratio value of 0.77, 1HPQ is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
A Quick Ratio of 0.48 indicates that 1HPQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.48, 1HPQ is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
1HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.67%.
The Earnings Per Share has been growing slightly by 6.64% on average over the past years.
Looking at the last year, 1HPQ shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
1HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
3.2 Future
The Earnings Per Share is expected to grow by 4.74% on average over the next years.
Based on estimates for the next years, 1HPQ will show a small growth in Revenue. The Revenue will grow by 1.26% on average per year.
EPS Next Y-1%
EPS Next 2Y1.55%
EPS Next 3Y4%
EPS Next 5Y4.74%
Revenue Next Year1.96%
Revenue Next 2Y1.67%
Revenue Next 3Y1.61%
Revenue Next 5Y1.26%
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 decreasing.
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
1HPQ is valuated cheaply with a Price/Earnings ratio of 7.86.
Compared to the rest of the industry, the Price/Earnings ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 97.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, 1HPQ is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.94, the valuation of 1HPQ can be described as very cheap.
1HPQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1HPQ is cheaper than 85.29% of the companies in the same industry.
1HPQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 82.35% of the companies listed in the same industry.
88.24% of the companies in the same industry are more expensive than 1HPQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
The decent profitability rating of 1HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y1.55%
EPS Next 3Y4%
5. Dividend
5.1 Amount
1HPQ has a Yearly Dividend Yield of 4.47%, which is a nice return.
1HPQ's Dividend Yield is rather good when compared to the industry average which is at 0.89. 1HPQ pays more dividend than 97.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, 1HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
On average, the dividend of 1HPQ grows each year by 9.97%, which is quite nice.
Dividend Growth(5Y)9.97%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
43.02% of the earnings are spent on dividend by 1HPQ. 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.
DP43.02%
EPS Next 2Y1.55%
EPS Next 3Y4%
BIT:1HPQ (11/24/2025, 7:00:00 PM)
21.13
+1.58 (+8.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners84%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap19.75B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts56
Price Target22.36 (5.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend1
Dividend Growth(5Y)9.97%
DP43.02%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.64%
Min EPS beat(2)-1.12%
Max EPS beat(2)-0.16%
EPS beat(4)0
Avg EPS beat(4)-3.83%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.16%
EPS beat(8)1
Avg EPS beat(8)-2.72%
EPS beat(12)2
Avg EPS beat(12)-1.72%
EPS beat(16)5
Avg EPS beat(16)-0.81%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.72%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)0.72%
Revenue beat(8)5
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-1.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)-7.65%
PT rev (3m)-5.99%
EPS NQ rev (1m)-2.82%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)-8.83%
EPS NY rev (3m)-8.9%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.42 | ||
| P/FCF | 8.21 | ||
| P/OCF | 6.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.38 |
EPS(TTM)2.69
EY12.73%
EPS(NY)2.66
Fwd EY12.59%
FCF(TTM)2.57
FCFY12.17%
OCF(TTM)3.4
OCFY16.07%
SpS50.8
BVpS-0.32
TBVpS-8.32
PEG (NY)N/A
PEG (5Y)1.18
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 25.99% | ||
| ROICexc | 36.92% | ||
| ROICexgc | 3251.08% | ||
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% | ||
| FCFM | 5.06% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.86%
ROIC(5y)35.59%
ROICexc(3y)41.51%
ROICexc(5y)52.92%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.38%
ROCE(5y)40.28%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.52%
ROICexc growth 5Y-18.88%
OM growth 3Y-6.95%
OM growth 5Y-1.18%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
F-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 97.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.43% | ||
| Profit Quality | 110.72% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | N/A |
F-Score5
WACC7.37%
ROIC/WACC3.53
Cap/Depr(3y)80.3%
Cap/Depr(5y)83.29%
Cap/Sales(3y)1.29%
Cap/Sales(5y)1.21%
Profit Quality(3y)105.09%
Profit Quality(5y)104.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
EPS Next Y-1%
EPS Next 2Y1.55%
EPS Next 3Y4%
EPS Next 5Y4.74%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
Revenue Next Year1.96%
Revenue Next 2Y1.67%
Revenue Next 3Y1.61%
Revenue Next 5Y1.26%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year13.75%
EBIT Next 3Y5.38%
EBIT Next 5Y2.76%
FCF growth 1Y-11.31%
FCF growth 3Y-8.64%
FCF growth 5Y-5.6%
OCF growth 1Y-1.39%
OCF growth 3Y-6.08%
OCF growth 5Y-3.05%
HP INC / 1HPQ.MI FAQ
Can you provide the ChartMill fundamental rating for HP INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1HPQ.MI.
What is the valuation status for 1HPQ stock?
ChartMill assigns a valuation rating of 9 / 10 to HP INC (1HPQ.MI). This can be considered as Undervalued.
How profitable is HP INC (1HPQ.MI) stock?
HP INC (1HPQ.MI) has a profitability rating of 6 / 10.
What is the expected EPS growth for HP INC (1HPQ.MI) stock?
The Earnings per Share (EPS) of HP INC (1HPQ.MI) is expected to decline by -1% in the next year.
Is the dividend of HP INC sustainable?
The dividend rating of HP INC (1HPQ.MI) is 7 / 10 and the dividend payout ratio is 43.02%.