HP INC (7HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7HP - US40434L1052 - Common Stock
19.376 EUR
-0.02 (-0.12%)
Overall 7HP gets a fundamental rating of 5 out of 10. We evaluated 7HP against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP is still in line with the averages on profitability rating, 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
In the past year 7HP was profitable.
7HP had a positive operating cash flow in the past year.
In the past 5 years 7HP has always been profitable.
7HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
7HP's Return On Assets of 6.05% is fine compared to the rest of the industry. 7HP outperforms 70.00% of its industry peers.
7HP has a better Return On Invested Capital (20.39%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 15.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 20.39% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.43%
ROIC(5y)27.93%
1.3 Margins
Looking at the Profit Margin, with a value of 4.57%, 7HP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
7HP's Profit Margin has declined in the last couple of years.
7HP's Operating Margin of 6.55% is fine compared to the rest of the industry. 7HP outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of 7HP has remained more or less at the same level.
7HP has a worse Gross Margin (20.60%) than 76.67% 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-6.95%
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, 7HP has an improved debt to assets ratio.
2.2 Solvency
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.
The Debt to FCF ratio of 7HP (3.45) is better than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.93
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.77 indicates that 7HP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.77, 7HP is doing worse than 86.67% of the companies in the same industry.
7HP has a Quick Ratio of 0.77. 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 (0.48) is worse than 93.33% 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.
7HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.64% yearly.
7HP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
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 4.74% on average over the next years.
The Revenue is expected to grow by 1.26% on average over the next years.
EPS Next Y-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
EPS Next 5Y4.74%
Revenue Next Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y1.26%
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
7HP is valuated cheaply with a Price/Earnings ratio of 7.28.
96.67% of the companies in the same industry are more expensive than 7HP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. 7HP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.32 indicates a rather cheap valuation of 7HP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 90.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 7HP to the average of the S&P500 Index (23.13), we can say 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 7HP is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 6 |
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)1.1
EPS Next 2Y1.91%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 5.18%, which is a nice return.
Compared to an average industry Dividend Yield of 0.97, 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 2.00, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
5.2 History
The dividend of 7HP is nicely growing with an annual growth rate of 9.97%!
Dividend Growth(5Y)9.97%
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.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.02%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
FRA:7HP (12/30/2025, 7:00:00 PM)
19.376
-0.02 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners84%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap18.11B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts56
Price Target22.79 (17.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend0.99
Dividend Growth(5Y)9.97%
DP43.02%
Div Incr Years6
Div Non Decr Years6
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)-9.07%
PT rev (3m)-5.48%
EPS NQ rev (1m)-2.57%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)-8.55%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.32 | ||
| P/S | 0.38 | ||
| P/FCF | 7.6 | ||
| P/OCF | 5.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6 |
EPS(TTM)2.66
EY13.73%
EPS(NY)2.65
Fwd EY13.65%
FCF(TTM)2.55
FCFY13.16%
OCF(TTM)3.37
OCFY17.37%
SpS50.35
BVpS-0.32
TBVpS-8.24
PEG (NY)N/A
PEG (5Y)1.1
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 20.39% | ||
| ROICexc | 28.97% | ||
| ROICexgc | 2551.3% | ||
| 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)23.43%
ROIC(5y)27.93%
ROICexc(3y)32.57%
ROICexc(5y)41.53%
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
WACC6.95%
ROIC/WACC2.93
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 Y-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
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 Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y1.26%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year13.75%
EBIT Next 3Y5.38%
EBIT Next 5Y2.76%
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 / 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 7.28 and the Price/Book (PB) ratio is -61.5.
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%.