HP INC (7HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7HP - US40434L1052 - Common Stock
18.304 EUR
+0.19 (+1.06%)
7HP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 7HP is valued quite cheap, but it does not seem to be growing. 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.
In the past 5 years 7HP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.05%, 7HP is doing good in the industry, outperforming 65.63% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.39%, 7HP belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 16.68%.
| 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
With a Profit Margin value of 4.57%, 7HP perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
In the last couple of years the Profit Margin of 7HP has declined.
7HP has a Operating Margin of 6.55%. This is comparable to the rest of the industry: 7HP outperforms 59.38% 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 78.13% of its industry peers.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 7HP is creating value.
7HP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 7HP has less shares outstanding
The debt/assets ratio for 7HP has been reduced compared to a year ago.
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 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.95
WACC6.91%
2.3 Liquidity
7HP has a Current 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.
7HP has a worse Current ratio (0.77) than 87.50% of its industry peers.
A Quick Ratio of 0.48 indicates that 7HP may have some problems paying its short term obligations.
7HP's Quick ratio of 0.48 is on the low side compared to the rest of the industry. 7HP is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
7HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.67%.
7HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.64% yearly.
The Revenue has been growing slightly by 3.24% in the past year.
The Revenue has been decreasing by -0.48% on average over the past years.
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 2.75% on average over the next years.
Based on estimates for the next years, 7HP will show a small growth in Revenue. The Revenue will grow by 0.50% on average per year.
EPS Next Y-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
EPS Next 5Y2.75%
Revenue Next Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y0.5%
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
A Price/Earnings ratio of 6.83 indicates a rather cheap valuation of 7HP.
7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 96.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, 7HP is valued rather cheaply.
The Price/Forward Earnings ratio is 6.89, 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 90.63% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 7HP is cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 5.72 |
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)1.03
EPS Next 2Y1.91%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, 7HP is a good candidate for dividend investing.
The stock price of 7HP dropped by -22.06% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.92, 7HP pays a better dividend. On top of this 7HP pays more dividend than 100.00% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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
43.02% 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.
DP43.02%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
FRA:7HP (1/12/2026, 7:00:00 PM)
18.304
+0.19 (+1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.73%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap17.11B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts55.83
Price Target22.79 (24.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend1
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)0.72%
PT rev (3m)-5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 6.89 | ||
| P/S | 0.36 | ||
| P/FCF | 7.14 | ||
| P/OCF | 5.41 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.72 |
EPS(TTM)2.68
EY14.64%
EPS(NY)2.66
Fwd EY14.52%
FCF(TTM)2.56
FCFY14%
OCF(TTM)3.38
OCFY18.48%
SpS50.6
BVpS-0.32
TBVpS-8.28
PEG (NY)N/A
PEG (5Y)1.03
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
WACC6.91%
ROIC/WACC2.95
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 5Y2.75%
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 5Y0.5%
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 5Y1.23%
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 6.83 and the Price/Book (PB) ratio is -57.81.
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%.