HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - Deutsche Boerse Ag - US40434L1052 - Common Stock - Currency: EUR
Overall 7HP gets a fundamental rating of 6 out of 10. We evaluated 7HP against 26 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP belongs to the best of the industry regarding profitability, there are some minor 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.
7HP had a positive operating cash flow in the past year.
7HP had positive earnings in each of the past 5 years.
7HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
7HP has a Return On Assets of 6.98%. This is amongst the best in the industry. 7HP outperforms 84.62% of its industry peers.
7HP has a better Return On Invested Capital (30.02%) than 92.31% 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 17.30%.
| 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%, 7HP is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
7HP's Profit Margin has been stable in the last couple of years.
7HP has a better Operating Margin (7.61%) than 76.92% of its industry peers.
7HP's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.85%, 7HP is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| 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
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.
The number of shares outstanding for 7HP has been reduced compared to 5 years ago.
7HP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that 7HP is in the distress zone and has some risk of bankruptcy.
7HP has a Altman-Z score of 1.75. This is in the better half of the industry: 7HP outperforms 61.54% of its industry peers.
The Debt to FCF ratio of 7HP is 2.97, which is a good value as it means it would take 7HP, 2.97 years of fcf income to pay off all of its debts.
7HP has a Debt to FCF ratio of 2.97. This is in the better half of the industry: 7HP outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 1.75 |
ROIC/WACC3.98
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.72 indicates that 7HP may have some problems paying its short term obligations.
7HP has a Current ratio of 0.72. This is amonst the worse of the industry: 7HP underperforms 84.62% of its industry peers.
7HP has a Quick Ratio of 0.72. This is a bad value and indicates that 7HP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 7HP (0.42) is worse than 88.46% 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 7HP have decreased by -1.48% in the last year.
Measured over the past years, 7HP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.74% on average per year.
7HP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.51%.
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)-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
7HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.32% yearly.
7HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% yearly.
EPS Next Y3.52%
EPS Next 2Y3.82%
EPS Next 3Y4.58%
EPS Next 5Y5.32%
Revenue Next Year2.75%
Revenue Next 2Y2.47%
Revenue Next 3Y1.96%
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.
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
The Price/Earnings ratio is 7.52, which indicates a rather cheap valuation of 7HP.
96.15% of the companies in the same industry are more expensive than 7HP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.92, 7HP is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.83, the valuation of 7HP can be described as very cheap.
80.77% of the companies in the same industry are more expensive than 7HP, based on the Price/Forward Earnings ratio.
7HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 6.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 7HP indicates a somewhat cheap valuation: 7HP is cheaper than 76.92% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 7HP does not grow enough to justify the current Price/Earnings ratio.
7HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)0.86
EPS Next 2Y3.82%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.86%, which is a nice return.
In the last 3 months the price of 7HP has falen by -30.13%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.42, 7HP pays a better dividend. On top of this 7HP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
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
7HP pays out 39.48% of its income as dividend. This is a sustainable payout ratio.
7HP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y3.82%
EPS Next 3Y4.58%
FRA:7HP (4/23/2025, 7:00:00 PM)
21.87
+1.04 (+4.99%)
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 Cap20.62B
Analysts67
Price Target34.24 (56.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend0.98
Dividend Growth(5Y)11.65%
DP39.48%
Div Incr Years6
Div Non Decr Years6
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)-1.15%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)-4.65%
PT rev (3m)-4.29%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-7.56%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)-2.87%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 6.83 | ||
| P/S | 0.44 | ||
| P/FCF | 7.21 | ||
| P/OCF | 5.88 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.15 |
EPS(TTM)2.91
EY13.31%
EPS(NY)3.2
Fwd EY14.64%
FCF(TTM)3.04
FCFY13.88%
OCF(TTM)3.72
OCFY17.01%
SpS50.07
BVpS-1
TBVpS-10.15
PEG (NY)2.14
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 | 1.75 |
F-Score7
WACC7.55%
ROIC/WACC3.98
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 Y3.52%
EPS Next 2Y3.82%
EPS Next 3Y4.58%
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 Year2.75%
Revenue Next 2Y2.47%
Revenue Next 3Y1.96%
Revenue Next 5Y1.21%
EBIT growth 1Y-3.76%
EBIT growth 3Y-9.21%
EBIT growth 5Y0.07%
EBIT Next Year14.84%
EBIT Next 3Y3.39%
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%