HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
24.4 EUR
+0.37 (+1.54%)
Taking everything into account, 7HP scores 5 out of 10 in our fundamental rating. 7HP was compared to 29 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 valuation in line with the averages, but on the other hand it scores bad on growth. 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.
Each year in the past 5 years 7HP has 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 72.41% of its industry peers.
The Return On Invested Capital of 7HP (25.92%) is better than 89.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 18.32%.
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
The Profit Margin of 7HP (4.83%) is better than 68.97% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP has a Operating Margin of 6.71%. This is in the better half of the industry: 7HP outperforms 72.41% of its industry peers.
In the last couple of years the Operating Margin of 7HP has grown nicely.
With a Gross Margin value of 20.89%, 7HP is not doing good in the industry: 68.97% 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 | 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
7HP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 7HP has been reduced compared to 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
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.
With a decent Debt to FCF ratio value of 3.38, 7HP is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.58
WACC7.24%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 7HP may have some problems paying its short term obligations.
7HP has a Current ratio of 0.74. This is amonst the worse of the industry: 7HP underperforms 86.21% 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 93.10% 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.
7HP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
7HP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.61%.
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)-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.
7HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
EPS Next 5Y2.13%
Revenue Next Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
Revenue Next 5Y1.32%
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
With a Price/Earnings ratio of 9.04, the valuation of 7HP can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, 7HP is valued rather cheaply.
A Price/Forward Earnings ratio of 8.36 indicates a reasonable valuation of 7HP.
7HP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 7HP is cheaper than 79.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 7HP is cheaper than 75.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.31 | ||
| EV/EBITDA | 7.24 |
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 2Y-0.05%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, 7HP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.21, 7HP pays a better dividend. On top of this 7HP pays more dividend than 96.55% of the companies listed in the same industry.
7HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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 (10/21/2025, 7:00:00 PM)
24.4
+0.37 (+1.54%)
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 Cap22.81B
Revenue(TTM)54.71B
Net Income(TTM)2.64B
Analysts66.36
Price Target24.24 (-0.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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)0.52%
PT rev (3m)0.69%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.48 | ||
| P/FCF | 9.31 | ||
| P/OCF | 7.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.24 |
EPS(TTM)2.7
EY11.07%
EPS(NY)2.92
Fwd EY11.96%
FCF(TTM)2.62
FCFY10.74%
OCF(TTM)3.41
OCFY13.96%
SpS50.43
BVpS-0.83
TBVpS-8.86
PEG (NY)N/A
PEG (5Y)1.03
Graham NumberN/A
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%
ROICexgc growth 3YN/A
ROICexgc 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
WACC7.24%
ROIC/WACC3.58
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 Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
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%