HP INC (1HPQ.MI) Stock Fundamental Analysis
Europe - BIT:1HPQ - US40434L1052 - Common Stock
23.22 EUR
+0.14 (+0.61%)
We assign a fundamental rating of 5 out of 10 to 1HPQ. 1HPQ was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPQ belongs to the best of the industry regarding profitability, 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
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.
1HPQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.62%, 1HPQ is doing good in the industry, outperforming 75.86% of the companies in the same industry.
1HPQ has a better Return On Invested Capital (25.92%) than 93.10% 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 17.37%.
The last Return On Invested Capital (25.92%) for 1HPQ is well below the 3 year average (31.68%), which needs to be investigated, but indicates that 1HPQ had better years and this may not be a problem.
| 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 has a better Profit Margin (4.83%) than 72.41% of its industry peers.
In the last couple of years the Profit Margin of 1HPQ has remained more or less at the same level.
The Operating Margin of 1HPQ (6.71%) is better than 72.41% of its industry peers.
In the last couple of years the Operating Margin of 1HPQ has grown nicely.
1HPQ has a worse Gross Margin (20.89%) than 65.52% 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.
1HPQ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1HPQ has less shares outstanding
The debt/assets ratio for 1HPQ has been reduced compared to a year ago.
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.
With a decent Debt to FCF ratio value of 3.38, 1HPQ is doing good in the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.57
WACC7.26%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 1HPQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, 1HPQ is doing worse than 82.76% of the companies in the same industry.
1HPQ has a Quick Ratio of 0.74. 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 0.44. This is amonst the worse of the industry: 1HPQ underperforms 86.21% 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.
1HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
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
1HPQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.13% yearly.
The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-6.49%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
EPS Next 5Y2.13%
Revenue Next Year2.31%
Revenue Next 2Y1.88%
Revenue Next 3Y1.83%
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 8.66 indicates a reasonable valuation of 1HPQ.
1HPQ's Price/Earnings ratio is rather cheap when compared to the industry. 1HPQ is cheaper than 93.10% of the companies in the same industry.
1HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.35.
The Price/Forward Earnings ratio is 7.99, which indicates a rather cheap valuation of 1HPQ.
Based on the Price/Forward Earnings ratio, 1HPQ is valued a bit cheaper than 79.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, 1HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPQ is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
1HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y0.17%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
1HPQ has a Yearly Dividend Yield of 4.00%, which is a nice return.
Compared to an average industry Dividend Yield of 2.46, 1HPQ pays a better dividend. On top of this 1HPQ pays more dividend than 96.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 1HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
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 2Y0.17%
EPS Next 3Y2.43%
BIT:1HPQ (8/27/2025, 7:00:00 PM)
23.22
+0.14 (+0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.52%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap21.81B
Analysts66.67
Price Target23.78 (2.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend0.95
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)-1.11%
PT rev (3m)-20.43%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-9.39%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 7.99 | ||
| P/S | 0.47 | ||
| P/FCF | 8.97 | ||
| P/OCF | 6.9 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)2.68
EY11.54%
EPS(NY)2.91
Fwd EY12.52%
FCF(TTM)2.59
FCFY11.14%
OCF(TTM)3.36
OCFY14.49%
SpS49.8
BVpS-0.82
TBVpS-8.75
PEG (NY)N/A
PEG (5Y)0.99
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%
ROICexcg growth 3YN/A
ROICexcg 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
WACC7.26%
ROIC/WACC3.57
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-6.49%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
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 Year2.31%
Revenue Next 2Y1.88%
Revenue Next 3Y1.83%
Revenue Next 5Y1.32%
EBIT growth 1Y-13.36%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year9.32%
EBIT Next 3Y3.63%
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%