HP INC (1HPQ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPQ - US40434L1052 - Common Stock
21.13 EUR
+1.58 (+8.09%)
We assign a fundamental rating of 5 out of 10 to 1HPQ. 1HPQ was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of 1HPQ while its profitability can be described as average. 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
1HPQ had positive earnings in the past year.
In the past year 1HPQ had a positive cash flow from operations.
In the past 5 years 1HPQ has always been profitable.
Each year in the past 5 years 1HPQ had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.05%, 1HPQ is doing good in the industry, outperforming 75.76% of the companies in the same industry.
1HPQ has a better Return On Invested Capital (25.99%) than 90.91% 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 18.15%.
| 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
Looking at the Profit Margin, with a value of 4.57%, 1HPQ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1HPQ's Profit Margin has declined in the last couple of years.
The Operating Margin of 1HPQ (6.55%) is better than 69.70% of its industry peers.
In the last couple of years the Operating Margin of 1HPQ has remained more or less at the same level.
1HPQ has a worse Gross Margin (20.60%) than 69.70% of its industry peers.
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.
The number of shares outstanding for 1HPQ has been reduced compared to 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 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 has a Debt to FCF ratio of 3.45. This is in the better half of the industry: 1HPQ outperforms 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC3.54
WACC7.35%
2.3 Liquidity
1HPQ has a Current Ratio of 0.77. 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 0.77 is on the low side compared to the rest of the industry. 1HPQ is outperformed by 81.82% of its industry peers.
1HPQ has a Quick Ratio of 0.77. 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 has a Quick ratio of 0.48. This is amonst the worse of the industry: 1HPQ underperforms 87.88% of its industry peers.
| 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.
1HPQ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
The Revenue has been decreasing by -0.48% on average over the past years.
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
Based on estimates for the next years, 1HPQ will show a small growth in Earnings Per Share. The EPS will grow by 4.74% on average per year.
Based on estimates for the next years, 1HPQ will show a small growth in Revenue. The Revenue will grow by 1.27% on average per year.
EPS Next Y8.59%
EPS Next 2Y7.07%
EPS Next 3Y4.93%
EPS Next 5Y4.74%
Revenue Next Year1.62%
Revenue Next 2Y1.66%
Revenue Next 3Y1.37%
Revenue Next 5Y1.27%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 7.88, the valuation of 1HPQ can be described as very cheap.
1HPQ's Price/Earnings ratio is rather cheap when compared to the industry. 1HPQ is cheaper than 96.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. 1HPQ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.25, 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 87.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, 1HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
1HPQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1HPQ is cheaper than 81.82% of the companies in the same industry.
87.88% 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 | 8.23 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
1HPQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)1.19
EPS Next 2Y7.07%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
1HPQ has a Yearly Dividend Yield of 4.83%, which is a nice return.
Compared to an average industry Dividend Yield of 2.16, 1HPQ pays a better dividend. On top of this 1HPQ pays more dividend than 96.97% of the companies listed in the same industry.
1HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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
1HPQ pays out 43.02% of its income as dividend. 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.
DP43.02%
EPS Next 2Y7.07%
EPS Next 3Y4.93%
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 Owners82.79%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap19.75B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts65.45
Price Target24.76 (17.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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)2.29%
PT rev (3m)4.13%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 7.25 | ||
| P/S | 0.42 | ||
| P/FCF | 8.23 | ||
| P/OCF | 6.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.39 |
EPS(TTM)2.68
EY12.68%
EPS(NY)2.91
Fwd EY13.79%
FCF(TTM)2.57
FCFY12.15%
OCF(TTM)3.39
OCFY16.05%
SpS50.71
BVpS-0.32
TBVpS-8.3
PEG (NY)0.92
PEG (5Y)1.19
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
WACC7.35%
ROIC/WACC3.54
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 Y8.59%
EPS Next 2Y7.07%
EPS Next 3Y4.93%
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 Year1.62%
Revenue Next 2Y1.66%
Revenue Next 3Y1.37%
Revenue Next 5Y1.27%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year23.47%
EBIT Next 3Y3.64%
EBIT Next 5Y2.77%
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 grow by 8.59% 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%.