HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
23.77 EUR
-0.13 (-0.54%)
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 27 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 has a bad growth rate and is valued cheaply. 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.
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 has a better Return On Assets (6.62%) than 74.07% of its industry peers.
The Return On Invested Capital of 7HP (25.92%) is better than 92.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 16.90%.
The last Return On Invested Capital (25.92%) for 7HP is well below the 3 year average (31.68%), which needs to be investigated, but indicates that 7HP had better years and this may not be a problem.
| 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
With a decent Profit Margin value of 4.83%, 7HP is doing good in the industry, outperforming 74.07% of the companies in the same industry.
7HP's Profit Margin has been stable in the last couple of years.
7HP's Operating Margin of 6.71% is fine compared to the rest of the industry. 7HP outperforms 74.07% of its industry peers.
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 66.67% 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
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.
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 3.38, 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.
With a decent Debt to FCF ratio value of 3.38, 7HP is doing good in the industry, outperforming 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.57
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 7HP may have some problems paying its short term obligations.
7HP's Current ratio of 0.74 is on the low side compared to the rest of the industry. 7HP is outperformed by 85.19% of its industry peers.
A Quick Ratio of 0.44 indicates that 7HP may have some problems paying its short term obligations.
7HP has a worse Quick ratio (0.44) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
7HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.85%.
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
7HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.13% yearly.
The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-6.49%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
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 8.97, the valuation of 7HP can be described as very reasonable.
Based on the Price/Earnings ratio, 7HP is valued cheaper than 92.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of 7HP to the average of the S&P500 Index (27.41), we can say 7HP is valued rather cheaply.
A Price/Forward Earnings ratio of 8.26 indicates a reasonable valuation of 7HP.
Based on the Price/Forward Earnings ratio, 7HP is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. 7HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than 77.78% of the companies in the same industry.
85.19% of the companies in the same industry are more expensive than 7HP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y0.17%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, 7HP is a good candidate for dividend investing.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.10. 7HP pays more dividend than 96.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
The dividend of 7HP is nicely growing with an annual growth rate of 11.65%!
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.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
FRA:7HP (9/18/2025, 7:00:00 PM)
23.77
-0.13 (-0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.52%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap22.22B
Analysts66.67
Price Target24.12 (1.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend0.95
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)1.99%
PT rev (3m)-19.23%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-10.9%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-9.39%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 8.26 | ||
| P/S | 0.48 | ||
| P/FCF | 9.24 | ||
| P/OCF | 7.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.19 |
EPS(TTM)2.65
EY11.15%
EPS(NY)2.88
Fwd EY12.11%
FCF(TTM)2.57
FCFY10.83%
OCF(TTM)3.35
OCFY14.08%
SpS49.53
BVpS-0.82
TBVpS-8.7
PEG (NY)N/A
PEG (5Y)1.03
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-6.49%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
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 Year9.32%
EBIT Next 3Y3.63%
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%