HP INC (7HP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:7HP • US40434L1052
16.872 EUR
+0.66 (+4.06%)
Last: Feb 2, 2026, 05:12 PM
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP has only an average score on both its financial health and profitability. 7HP is valued quite cheap, but it does not seem to be growing. 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.
- In the past 5 years 7HP has always been profitable.
- In the past 5 years 7HP always reported a positive cash flow from operatings.
1.2 Ratios
- 7HP's Return On Assets of 6.05% is fine compared to the rest of the industry. 7HP outperforms 66.67% of its industry peers.
- 7HP has a Return On Invested Capital of 20.30%. This is amongst the best in the industry. 7HP outperforms 81.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 7HP is significantly above the industry average of 17.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 20.3% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.52%
ROIC(5y)27.98%
1.3 Margins
- 7HP's Profit Margin of 4.57% is in line compared to the rest of the industry. 7HP outperforms 57.58% of its industry peers.
- In the last couple of years the Profit Margin of 7HP has declined.
- With a decent Operating Margin value of 6.55%, 7HP is doing good in the industry, outperforming 60.61% of the companies in the same industry.
- 7HP's Operating Margin has been stable in the last couple of years.
- 7HP has a worse Gross Margin (20.60%) than 78.79% of its industry peers.
- 7HP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% |
OM growth 3Y-6.4%
OM growth 5Y-0.83%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 7HP 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.
- The debt/assets ratio for 7HP has been reduced compared to a year ago.
2.2 Solvency
- 7HP has an Altman-Z score of 1.60. This is a bad value and indicates that 7HP is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.60, 7HP is in line with its industry, outperforming 51.52% of the companies in the same industry.
- The Debt to FCF ratio of 7HP is 3.45, which is a good value as it means it would take 7HP, 3.45 years of fcf income to pay off all of its debts.
- 7HP has a better Debt to FCF ratio (3.45) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.6 |
ROIC/WACC3.04
WACC6.67%
2.3 Liquidity
- A Current Ratio of 0.77 indicates that 7HP may have some problems paying its short term obligations.
- With a Current ratio value of 0.77, 7HP is not doing good in the industry: 87.88% of the companies in the same industry are doing better.
- A Quick Ratio of 0.48 indicates that 7HP may have some problems paying its short term obligations.
- 7HP's Quick ratio of 0.48 is on the low side compared to the rest of the industry. 7HP is outperformed by 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- The earnings per share for 7HP have decreased by -7.67% in the last year.
- Measured over the past 5 years, 7HP shows a small growth in Earnings Per Share. The EPS has been growing by 6.64% on average per year.
- The Revenue has been growing slightly by 3.24% in the past year.
- 7HP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
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
- The Earnings Per Share is expected to grow by 2.75% on average over the next years.
- Based on estimates for the next years, 7HP will show a small growth in Revenue. The Revenue will grow by 0.50% on average per year.
EPS Next Y-1.08%
EPS Next 2Y1.46%
EPS Next 3Y3.48%
EPS Next 5Y2.75%
Revenue Next Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
Revenue Next 5Y0.5%
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
- The Price/Earnings ratio is 6.42, which indicates a rather cheap valuation of 7HP.
- 7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 96.97% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 7HP to the average of the S&P500 Index (28.32), we can say 7HP is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.50, the valuation of 7HP can be described as very cheap.
- Based on the Price/Forward Earnings ratio, 7HP is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 7HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 6.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 7HP is valued cheaper than 81.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
- The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y1.46%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.19%, 7HP is a good candidate for dividend investing.
- The stock price of 7HP dropped by -32.07% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- 7HP's Dividend Yield is rather good when compared to the industry average which is at 0.92. 7HP pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
- The dividend of 7HP is nicely growing with an annual growth rate of 10.14%!
Dividend Growth(5Y)10.14%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 7HP pays out 43.02% of its income as dividend. 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.
DP43.02%
EPS Next 2Y1.46%
EPS Next 3Y3.48%
HP INC / 7HP.DE FAQ
What is the fundamental rating for 7HP stock?
ChartMill assigns a fundamental rating of 5 / 10 to 7HP.DE.
What is the valuation status for 7HP stock?
ChartMill assigns a valuation rating of 8 / 10 to HP INC (7HP.DE). This can be considered as Undervalued.
How profitable is HP INC (7HP.DE) stock?
HP INC (7HP.DE) has a profitability rating of 6 / 10.
What is the valuation of HP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HP INC (7HP.DE) is 6.42 and the Price/Book (PB) ratio is -54.33.
Can you provide the dividend sustainability for 7HP stock?
The dividend rating of HP INC (7HP.DE) is 7 / 10 and the dividend payout ratio is 43.02%.