HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - Deutsche Boerse Ag - US40434L1052 - Common Stock - Currency: EUR
7HP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP scores excellent on profitability, but there are concerns on its financial health. 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
In the past year 7HP was profitable.
In the past year 7HP had a positive cash flow from operations.
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
The Return On Assets of 7HP (6.49%) is better than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.59%, 7HP belongs to the top of the industry, outperforming 89.29% 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 18.07%.
The 3 year average ROIC (31.68%) for 7HP is well above the current ROIC(26.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | N/A | ||
| ROIC | 26.59% |
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 4.64%, 7HP is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of 7HP has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.08%, 7HP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
7HP's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.15%, 7HP is not doing good in the industry: 67.86% 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 | 7.08% | ||
| PM (TTM) | 4.64% | ||
| GM | 21.15% |
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
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.
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 4.04, which is a neutral value as it means it would take 7HP, 4.04 years of fcf income to pay off all of its debts.
7HP's Debt to FCF ratio of 4.04 is fine compared to the rest of the industry. 7HP outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | N/A |
ROIC/WACC3.59
WACC7.41%
2.3 Liquidity
7HP has a Current Ratio of 0.73. 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 0.73, 7HP is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
A Quick Ratio of 0.42 indicates that 7HP may have some problems paying its short term obligations.
7HP has a worse Quick ratio (0.42) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
7HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.31%.
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 2.45%.
7HP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
EPS 1Y (TTM)-5.31%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-13.41%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
3.2 Future
7HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.51% yearly.
The Revenue is expected to grow by 1.01% on average over the next years.
EPS Next Y-7.19%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
EPS Next 5Y2.51%
Revenue Next Year2.17%
Revenue Next 2Y1.86%
Revenue Next 3Y1.91%
Revenue Next 5Y1.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 8.01 indicates a reasonable valuation of 7HP.
Compared to the rest of the industry, the Price/Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 92.86% of the companies listed in the same industry.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.56, the valuation of 7HP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 7HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y0.15%
EPS Next 3Y2.12%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.45%, which is a nice return.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.38. 7HP pays more dividend than 100.00% of the companies in the same industry.
7HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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
7HP pays out 42.79% of its income as dividend. 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.
DP42.79%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
FRA:7HP (7/8/2025, 7:00:00 PM)
21.935
+0.11 (+0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.45%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap20.68B
Analysts66.67
Price Target24.05 (9.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend0.95
Dividend Growth(5Y)11.65%
DP42.79%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.03%
Min EPS beat(2)-12.57%
Max EPS beat(2)-1.5%
EPS beat(4)0
Avg EPS beat(4)-4.86%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.96%
EPS beat(8)1
Avg EPS beat(8)-2.77%
EPS beat(12)3
Avg EPS beat(12)-1.65%
EPS beat(16)7
Avg EPS beat(16)-0.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)-19.45%
PT rev (3m)-29.76%
EPS NQ rev (1m)-15.99%
EPS NQ rev (3m)-20.37%
EPS NY rev (1m)-10.07%
EPS NY rev (3m)-12.81%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 7.56 | ||
| P/S | 0.45 | ||
| P/FCF | 9.11 | ||
| P/OCF | 7.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.74
EY12.49%
EPS(NY)2.9
Fwd EY13.23%
FCF(TTM)2.41
FCFY10.97%
OCF(TTM)3.13
OCFY14.28%
SpS49.15
BVpS-1.16
TBVpS-9.04
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | N/A | ||
| ROCE | 31.41% | ||
| ROIC | 26.59% | ||
| ROICexc | 34.21% | ||
| ROICexgc | 406.86% | ||
| OM | 7.08% | ||
| PM (TTM) | 4.64% | ||
| GM | 21.15% | ||
| FCFM | 4.9% |
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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 97.8% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.16% | ||
| Profit Quality | 105.64% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | N/A |
F-Score5
WACC7.41%
ROIC/WACC3.59
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)-5.31%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-13.41%
EPS Next Y-7.19%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
EPS Next 5Y2.51%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
Revenue Next Year2.17%
Revenue Next 2Y1.86%
Revenue Next 3Y1.91%
Revenue Next 5Y1.01%
EBIT growth 1Y-10.66%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year13.8%
EBIT Next 3Y4.08%
EBIT Next 5Y0.31%
FCF growth 1Y17.81%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y18.54%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%