HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
22.695 EUR
-0.14 (-0.61%)
Taking everything into account, 7HP scores 5 out of 10 in our fundamental rating. 7HP was compared to 28 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP has a great profitability rating, there are quite some concerns on its financial health. 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 has a Return On Assets of 6.62%. This is in the better half of the industry: 7HP outperforms 78.57% of its industry peers.
The Return On Invested Capital of 7HP (25.92%) is better than 92.86% of its industry peers.
7HP had an Average Return On Invested Capital over the past 3 years of 31.68%. This is significantly above the industry average of 15.60%.
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
7HP has a better Profit Margin (4.83%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of 7HP has remained more or less at the same level.
With a decent Operating Margin value of 6.71%, 7HP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
7HP's Operating Margin has improved in the last couple of years.
7HP has a Gross Margin of 20.89%. This is in the lower half of the industry: 7HP underperforms 67.86% of its industry peers.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 7HP is creating value.
The number of shares outstanding for 7HP has been reduced compared to 1 year ago.
Compared to 5 years ago, 7HP has less shares outstanding
7HP has a better debt/assets ratio than last year.
2.2 Solvency
7HP has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as 7HP would need 3.38 years to pay back of all of its debts.
The Debt to FCF ratio of 7HP (3.38) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.57
WACC7.25%
2.3 Liquidity
7HP has a Current Ratio of 0.74. This is a bad value and indicates that 7HP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.74, 7HP is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
7HP has a Quick Ratio of 0.74. 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 (0.44) is worse than 89.29% of its industry peers.
| 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.
The Earnings Per Share has been growing by 8.74% on average over the past years. This is quite good.
Looking at the last year, 7HP shows a small growth in Revenue. The Revenue has grown by 2.61% in the last year.
The Revenue has been decreasing by -1.84% on average over the past years.
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
Based on estimates for the next years, 7HP will show a small growth in Earnings Per Share. The EPS will grow by 2.13% on average per year.
Based on estimates for the next years, 7HP will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
EPS Next 5Y2.13%
Revenue Next Year2.88%
Revenue Next 2Y2.21%
Revenue Next 3Y2.02%
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.
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
With a Price/Earnings ratio of 8.53, the valuation of 7HP can be described as very reasonable.
7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 92.86% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.88, which indicates a rather cheap valuation of 7HP.
7HP's Price/Forward Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 85.71% of the companies in the same industry.
7HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 7.88 |
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 78.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.77 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.21%, which is a nice return.
Compared to an average industry Dividend Yield of 2.53, 7HP pays a better dividend. On top of this 7HP pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 (10/2/2025, 7:00:00 PM)
22.695
-0.14 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.79%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap21.21B
Analysts66.67
Price Target24.12 (6.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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)1.71%
PT rev (3m)0.27%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)1.25%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.46 | ||
| P/FCF | 8.77 | ||
| P/OCF | 6.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.9 |
EPS(TTM)2.66
EY11.72%
EPS(NY)2.88
Fwd EY12.7%
FCF(TTM)2.59
FCFY11.4%
OCF(TTM)3.36
OCFY14.82%
SpS49.8
BVpS-0.82
TBVpS-8.75
PEG (NY)N/A
PEG (5Y)0.98
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
WACC7.25%
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-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 Year2.88%
Revenue Next 2Y2.21%
Revenue Next 3Y2.02%
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%