HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
23.365 EUR
+0.14 (+0.62%)
Overall 7HP gets a fundamental rating of 5 out of 10. We evaluated 7HP against 29 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP scores excellent on profitability, but there are concerns on its financial health. 7HP is cheap, but on the other hand it scores bad on growth. Finally 7HP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
7HP had positive earnings in the past year.
In the past year 7HP had a positive cash flow from operations.
7HP had positive earnings in each of the past 5 years.
In the past 5 years 7HP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.62%, 7HP is doing good in the industry, outperforming 75.86% of the companies in the same industry.
7HP's Return On Invested Capital of 25.92% is amongst the best of the industry. 7HP outperforms 89.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 17.37%.
The 3 year average ROIC (31.68%) for 7HP 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
Looking at the Profit Margin, with a value of 4.83%, 7HP is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
In the last couple of years the Profit Margin of 7HP has remained more or less at the same level.
Looking at the Operating Margin, with a value of 6.71%, 7HP is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
In the last couple of years the Operating Margin of 7HP has grown nicely.
7HP has a Gross Margin of 20.89%. This is in the lower half of the industry: 7HP underperforms 68.97% of its industry peers.
7HP'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
7HP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
7HP has less shares outstanding than it did 1 year ago.
7HP has less shares outstanding than it did 5 years ago.
7HP has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 7HP is 3.38, which is a good value as it means it would take 7HP, 3.38 years of fcf income to pay off all of its debts.
7HP 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/WACC3.58
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 7HP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, 7HP is doing worse than 86.21% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that 7HP may have some problems paying its short term obligations.
With a Quick ratio value of 0.44, 7HP is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for 7HP have decreased by -6.85% in the last year.
7HP 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, 7HP shows a small growth in Revenue. The Revenue has grown by 2.61% in the last year.
Measured over the past years, 7HP 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.
7HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
EPS Next 5Y2.13%
Revenue Next Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
Revenue Next 5Y1.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 8.62, the valuation of 7HP can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 93.10% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. 7HP is valued rather cheaply when compared to this.
7HP is valuated cheaply with a Price/Forward Earnings ratio of 7.98.
7HP's Price/Forward Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 82.76% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 7HP is cheaper than 79.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.89 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
7HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.29%, which is a nice return.
Compared to an average industry Dividend Yield of 2.46, 7HP pays a better dividend. On top of this 7HP pays more dividend than 93.10% of the companies listed in the same industry.
7HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
5.2 History
On average, the dividend of 7HP grows each year by 11.65%, which is quite nice.
Dividend Growth(5Y)11.65%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
40.95% of the earnings are spent on dividend by 7HP. This is a bit on the high side, but may be sustainable.
7HP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
FRA:7HP (10/10/2025, 7:00:00 PM)
23.365
+0.14 (+0.62%)
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 Cap21.84B
Analysts66.36
Price Target24.24 (3.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
Yearly Dividend0.96
Dividend Growth(5Y)11.65%
DP40.95%
Div Incr Years6
Div Non Decr Years6
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)2.24%
PT rev (3m)0.8%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.98 | ||
| P/S | 0.46 | ||
| P/FCF | 8.89 | ||
| P/OCF | 6.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)2.71
EY11.6%
EPS(NY)2.93
Fwd EY12.53%
FCF(TTM)2.63
FCFY11.25%
OCF(TTM)3.42
OCFY14.63%
SpS50.6
BVpS-0.83
TBVpS-8.89
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
WACC7.23%
ROIC/WACC3.58
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-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
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 Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
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%