HP INC (1HPQ.MI) Stock Fundamental Analysis
Europe - BIT:1HPQ - US40434L1052 - Common Stock
23.89 EUR
-0.37 (-1.55%)
Overall 1HPQ gets a fundamental rating of 5 out of 10. We evaluated 1HPQ against 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 is cheap, but on the other hand it scores bad on growth. 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.
1HPQ had positive earnings in each of the past 5 years.
In the past 5 years 1HPQ always reported a positive cash flow from operatings.
1.2 Ratios
1HPQ has a better Return On Assets (6.62%) than 68.97% of its industry peers.
With an excellent Return On Invested Capital value of 25.92%, 1HPQ belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
1HPQ had an Average Return On Invested Capital over the past 3 years of 31.68%. This is significantly above the industry average of 19.94%.
The 3 year average ROIC (31.68%) for 1HPQ is well above the current ROIC(25.92%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | N/A | ||
| ROIC | 25.92% |
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 4.83% is fine compared to the rest of the industry. 1HPQ outperforms 65.52% of its industry peers.
In the last couple of years the Profit Margin of 1HPQ has remained more or less at the same level.
1HPQ's Operating Margin of 6.71% is fine compared to the rest of the industry. 1HPQ outperforms 65.52% of its industry peers.
1HPQ's Operating Margin has improved in the last couple of years.
The Gross Margin of 1HPQ (20.89%) 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 | 6.71% | ||
| PM (TTM) | 4.83% | ||
| GM | 20.89% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1HPQ is creating value.
Compared to 1 year ago, 1HPQ has less shares outstanding
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 3.38, which is a good value as it means it would take 1HPQ, 3.38 years of fcf income to pay off all of its debts.
1HPQ has a better Debt to FCF ratio (3.38) than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.55
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 1HPQ may have some problems paying its short term obligations.
1HPQ has a Current ratio of 0.74. This is amonst the worse of the industry: 1HPQ underperforms 86.21% of its industry peers.
A Quick Ratio of 0.44 indicates that 1HPQ may have some problems paying its short term obligations.
1HPQ has a Quick ratio of 0.44. This is amonst the worse of the industry: 1HPQ underperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
1HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.85%.
Measured over the past years, 1HPQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.74% on average per year.
The Revenue has been growing slightly by 2.61% in the past year.
Measured over the past years, 1HPQ shows a decrease in Revenue. The Revenue has been decreasing by -1.84% on average per year.
EPS 1Y (TTM)-6.85%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-9.64%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.05%
3.2 Future
The Earnings Per Share is expected to grow by 2.13% 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 1.32% on average per year.
EPS Next Y-7.21%
EPS Next 2Y0.18%
EPS Next 3Y1.91%
EPS Next 5Y2.13%
Revenue Next Year2.98%
Revenue Next 2Y2.34%
Revenue Next 3Y2.14%
Revenue Next 5Y1.32%
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.
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 8.78 indicates a reasonable valuation of 1HPQ.
Compared to the rest of the industry, the Price/Earnings ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, 1HPQ is valued rather cheaply.
A Price/Forward Earnings ratio of 8.09 indicates a reasonable valuation of 1HPQ.
Based on the Price/Forward Earnings ratio, 1HPQ is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, 1HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HPQ indicates a somewhat cheap valuation: 1HPQ is cheaper than 79.31% of the companies listed in the same industry.
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 | 9.04 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
The decent profitability rating of 1HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y0.18%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
1HPQ has a Yearly Dividend Yield of 4.16%, which is a nice return.
1HPQ's Dividend Yield is rather good when compared to the industry average which is at 2.04. 1HPQ pays more dividend than 93.10% of the companies in the same industry.
1HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
40.95% of the earnings are spent on dividend by 1HPQ. This is a bit on the high side, but may be sustainable.
1HPQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y0.18%
EPS Next 3Y1.91%
BIT:1HPQ (10/31/2025, 7:00:00 PM)
23.89
-0.37 (-1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.79%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap22.33B
Revenue(TTM)54.71B
Net Income(TTM)2.64B
Analysts66.36
Price Target24.21 (1.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.96
Dividend Growth(5Y)11.65%
DP40.95%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.84%
Min EPS beat(2)-12.57%
Max EPS beat(2)-1.12%
EPS beat(4)0
Avg EPS beat(4)-4.04%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.96%
EPS beat(8)1
Avg EPS beat(8)-2.81%
EPS beat(12)3
Avg EPS beat(12)-1.67%
EPS beat(16)6
Avg EPS beat(16)-0.46%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)0.72%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.72%
Revenue beat(8)4
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-1.07%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)1.8%
PT rev (3m)0.66%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.09 | ||
| P/S | 0.47 | ||
| P/FCF | 9.04 | ||
| P/OCF | 6.96 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.07 |
EPS(TTM)2.72
EY11.39%
EPS(NY)2.95
Fwd EY12.37%
FCF(TTM)2.64
FCFY11.06%
OCF(TTM)3.43
OCFY14.38%
SpS50.84
BVpS-0.84
TBVpS-8.93
PEG (NY)N/A
PEG (5Y)1.01
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | N/A | ||
| ROCE | 30.63% | ||
| ROIC | 25.92% | ||
| ROICexc | 34.09% | ||
| ROICexgc | 773.03% | ||
| OM | 6.71% | ||
| PM (TTM) | 4.83% | ||
| GM | 20.89% | ||
| FCFM | 5.2% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 93.12% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.56% | ||
| Profit Quality | 107.69% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | N/A |
F-Score5
WACC7.31%
ROIC/WACC3.55
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)-6.85%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-9.64%
EPS Next Y-7.21%
EPS Next 2Y0.18%
EPS Next 3Y1.91%
EPS Next 5Y2.13%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.05%
Revenue Next Year2.98%
Revenue Next 2Y2.34%
Revenue Next 3Y2.14%
Revenue Next 5Y1.32%
EBIT growth 1Y-13.36%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year8.9%
EBIT Next 3Y2.92%
EBIT Next 5Y0.31%
FCF growth 1Y-1.86%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y5.6%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%
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 7 / 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 7 / 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 -7.21% 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 40.95%.