HP INC (1HPQ.MI) Stock Fundamental Analysis
BIT:1HPQ - Euronext Milan - US40434L1052 - Common Stock - Currency: EUR
Overall 1HPQ gets a fundamental rating of 5 out of 10. We evaluated 1HPQ against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPQ has a great profitability rating, there are some minor concerns on its financial health. 1HPQ is cheap, but on the other hand it scores bad on growth. Finally 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.
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
Looking at the Return On Assets, with a value of 6.98%, 1HPQ is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
1HPQ's Return On Invested Capital of 30.02% is amongst the best of the industry. 1HPQ outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1HPQ is significantly above the industry average of 16.05%.
| 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
Looking at the Profit Margin, with a value of 5.04%, 1HPQ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 7.61% is fine compared to the rest of the industry. 1HPQ outperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of 1HPQ has grown nicely.
With a Gross Margin value of 21.85%, 1HPQ is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
1HPQ's Gross Margin has improved in the last couple of years.
| 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
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.
1HPQ has less shares outstanding than it did 5 years ago.
1HPQ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that 1HPQ is in the distress zone and has some risk of bankruptcy.
1HPQ has a Altman-Z score of 1.81. This is comparable to the rest of the industry: 1HPQ outperforms 56.67% of its industry peers.
The Debt to FCF ratio of 1HPQ is 2.97, which is a good value as it means it would take 1HPQ, 2.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1HPQ (2.97) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 1.81 |
ROIC/WACC3.85
WACC7.79%
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.
1HPQ's Current ratio of 0.72 is on the low side compared to the rest of the industry. 1HPQ is outperformed by 90.00% of its industry peers.
A Quick Ratio of 0.42 indicates that 1HPQ may have some problems paying its short term obligations.
1HPQ has a Quick ratio of 0.42. This is amonst the worse of the industry: 1HPQ underperforms 93.33% 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.
The Earnings Per Share has been growing by 8.74% on average over the past years. This is quite good.
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
Based on estimates for the next years, 1HPQ will show a small growth in Earnings Per Share. The EPS will grow by 5.32% on average per year.
Based on estimates for the next years, 1HPQ will show a small growth in Revenue. The Revenue will grow by 1.21% on average per year.
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
Based on the Price/Earnings ratio of 7.47, the valuation of 1HPQ can be described as very cheap.
83.33% of the companies in the same industry are more expensive than 1HPQ, based on the Price/Earnings ratio.
1HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 6.83, which indicates a rather cheap valuation of 1HPQ.
1HPQ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1HPQ is cheaper than 73.33% of the companies in the same industry.
1HPQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 6.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPQ is valued a bit cheaper than 70.00% of the companies in the same industry.
1HPQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1HPQ is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.17 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1HPQ may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)0.86
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.
1HPQ's Dividend Yield is rather good when compared to the industry average which is at 2.21. 1HPQ pays more dividend than 96.67% 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 | 4.05% |
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 39.48% of its income as dividend. This is a sustainable payout ratio.
1HPQ's earnings are growing slower than its dividend. 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
+1.07 (+5.14%)
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 | 7.47 | ||
| Fwd PE | 6.83 | ||
| P/S | 0.43 | ||
| P/FCF | 7.17 | ||
| P/OCF | 5.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)2.94
EY13.38%
EPS(NY)3.22
Fwd EY14.64%
FCF(TTM)3.07
FCFY13.95%
OCF(TTM)3.76
OCFY17.1%
SpS50.57
BVpS-1.01
TBVpS-10.25
PEG (NY)2.33
PEG (5Y)0.86
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 | 1.81 |
F-Score7
WACC7.79%
ROIC/WACC3.85
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%