HP INC (1HPQ.MI) Stock Fundamental Analysis
BIT:1HPQ - Euronext Milan - US40434L1052 - Common Stock - Currency: EUR
1HPQ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPQ scores excellent on profitability, but there are some minor 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.
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 (6.98%) is better than 82.14% of its industry peers.
With an excellent Return On Invested Capital value of 30.02%, 1HPQ belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1HPQ is significantly above the industry average of 18.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | N/A | ||
| ROIC | 30.02% |
ROA(3y)7.97%
ROA(5y)9.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.41%
1.3 Margins
1HPQ's Profit Margin of 5.04% is fine compared to the rest of the industry. 1HPQ outperforms 71.43% of its industry peers.
1HPQ's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1HPQ (7.61%) is better than 82.14% of its industry peers.
1HPQ's Operating Margin has improved in the last couple of years.
The Gross Margin of 1HPQ (21.85%) is worse than 64.29% of its industry peers.
In the last couple of years the Gross Margin of 1HPQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.61% | ||
| PM (TTM) | 5.04% | ||
| GM | 21.85% |
OM growth 3Y-3.92%
OM growth 5Y1.94%
PM growth 3Y-20.32%
PM growth 5Y-0.69%
GM growth 3Y1.45%
GM growth 5Y3.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1HPQ is creating value.
The number of shares outstanding for 1HPQ has been reduced compared to 1 year ago.
1HPQ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1HPQ has been reduced compared to a year ago.
2.2 Solvency
1HPQ has an Altman-Z score of 1.76. This is a bad value and indicates that 1HPQ is not financially healthy and even has some risk of bankruptcy.
1HPQ has a Altman-Z score of 1.76. This is comparable to the rest of the industry: 1HPQ outperforms 57.14% of its industry peers.
1HPQ has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as 1HPQ would need 2.97 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.97, 1HPQ is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 1.76 |
ROIC/WACC4.07
WACC7.38%
2.3 Liquidity
1HPQ has a Current Ratio of 0.72. This is a bad value and indicates that 1HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1HPQ (0.72) is worse than 85.71% of its industry peers.
1HPQ has a Quick Ratio of 0.72. This is a bad value and indicates that 1HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1HPQ (0.42) is worse than 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for 1HPQ have decreased by -1.48% in the last year.
1HPQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
Looking at the last year, 1HPQ shows a small growth in Revenue. The Revenue has grown by 1.51% in the last year.
1HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
EPS 1Y (TTM)-1.48%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-8.64%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%2.42%
3.2 Future
1HPQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.32% yearly.
The Revenue is expected to grow by 1.21% on average over the next years.
EPS Next Y3.21%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
EPS Next 5Y5.32%
Revenue Next Year2.43%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.21%
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
With a Price/Earnings ratio of 7.76, 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 96.43% of the companies listed in the same industry.
1HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
Based on the Price/Forward Earnings ratio of 7.09, the valuation of 1HPQ can be described as very cheap.
Based on the Price/Forward Earnings ratio, 1HPQ is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1HPQ to the average of the S&P500 Index (21.74), we can say 1HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 7.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPQ is valued cheaper than 82.14% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)0.89
EPS Next 2Y3.55%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, 1HPQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.38, 1HPQ pays a better dividend. On top of this 1HPQ pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, 1HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
The dividend of 1HPQ is nicely growing with an annual growth rate of 11.65%!
Dividend Growth(5Y)11.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1HPQ pays out 39.48% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1HPQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
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 Owners82.73%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap20.71B
Analysts67
Price Target29.89 (36.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend0.99
Dividend Growth(5Y)11.65%
DP39.48%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.23%
Min EPS beat(2)-1.5%
Max EPS beat(2)-0.96%
EPS beat(4)1
Avg EPS beat(4)-1.72%
Min EPS beat(4)-4.43%
Max EPS beat(4)0.02%
EPS beat(8)2
Avg EPS beat(8)-0.68%
EPS beat(12)4
Avg EPS beat(12)-0.47%
EPS beat(16)8
Avg EPS beat(16)0.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.04%
Revenue beat(4)3
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.18%
Revenue beat(12)4
Avg Revenue beat(12)-1.69%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)-12.69%
PT rev (3m)-14%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-3.27%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 7.09 | ||
| P/S | 0.45 | ||
| P/FCF | 7.44 | ||
| P/OCF | 6.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)2.83
EY12.88%
EPS(NY)3.1
Fwd EY14.11%
FCF(TTM)2.95
FCFY13.45%
OCF(TTM)3.62
OCFY16.48%
SpS48.73
BVpS-0.97
TBVpS-9.88
PEG (NY)2.42
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | N/A | ||
| ROCE | 35.65% | ||
| ROIC | 30.02% | ||
| ROICexc | 40.06% | ||
| ROICexgc | N/A | ||
| OM | 7.61% | ||
| PM (TTM) | 5.04% | ||
| GM | 21.85% | ||
| FCFM | 6.06% |
ROA(3y)7.97%
ROA(5y)9.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.41%
ROICexc(3y)43.22%
ROICexc(5y)62.59%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.59%
ROCE(5y)43.67%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.23%
ROICexc growth 5Y-14.33%
OM growth 3Y-3.92%
OM growth 5Y1.94%
PM growth 3Y-20.32%
PM growth 5Y-0.69%
GM growth 3Y1.45%
GM growth 5Y3.02%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 89.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.34% | ||
| Profit Quality | 120.16% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.76 |
F-Score7
WACC7.38%
ROIC/WACC4.07
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)108.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.48%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-8.64%
EPS Next Y3.21%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
EPS Next 5Y5.32%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%2.42%
Revenue Next Year2.43%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.21%
EBIT growth 1Y-3.76%
EBIT growth 3Y-9.21%
EBIT growth 5Y0.07%
EBIT Next Year13.8%
EBIT Next 3Y4.08%
EBIT Next 5Y1.68%
FCF growth 1Y57.02%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y43.44%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%