HP INC (7HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7HP - US40434L1052 - Common Stock
20.84 EUR
-0.43 (-2.04%)
Taking everything into account, 7HP scores 5 out of 10 in our fundamental rating. 7HP was compared to 30 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 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.
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
With a decent Return On Assets value of 6.05%, 7HP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.39%, 7HP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
7HP had an Average Return On Invested Capital over the past 3 years of 23.43%. This is significantly above the industry average of 15.63%.
| 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 decent Profit Margin value of 4.57%, 7HP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 7HP has declined.
7HP has a better Operating Margin (6.55%) than 70.00% 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 76.67% 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.
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
Compared to 1 year ago, 7HP has an improved debt to assets ratio.
2.2 Solvency
7HP has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as 7HP would need 3.45 years to pay back of all of its debts.
7HP has a Debt to FCF ratio of 3.45. This is in the better half of the industry: 7HP outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.88
WACC7.07%
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.
Looking at the Current ratio, with a value of 0.77, 7HP is doing worse than 86.67% of the companies in the same industry.
7HP has a Quick 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.
The Quick ratio of 7HP (0.48) is worse than 93.33% 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%.
Measured over the past 5 years, 7HP shows a small growth in Earnings Per Share. The EPS has been growing by 6.64% on average per year.
7HP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
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 4.74% on average over the next years.
The Revenue is expected to grow by 1.26% on average over the next years.
EPS Next Y-1%
EPS Next 2Y1.55%
EPS Next 3Y4%
EPS Next 5Y4.74%
Revenue Next Year1.96%
Revenue Next 2Y1.67%
Revenue Next 3Y1.61%
Revenue Next 5Y1.26%
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
A Price/Earnings ratio of 7.83 indicates a rather cheap valuation of 7HP.
7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 96.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of 7HP to the average of the S&P500 Index (26.55), we can say 7HP is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.90, 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 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than the industry average as 80.00% 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 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y1.55%
EPS Next 3Y4%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.56%, which is a nice return.
7HP's Dividend Yield is rather good when compared to the industry average which is at 0.92. 7HP pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
5.2 History
On average, the dividend of 7HP grows each year by 9.97%, which is quite nice.
Dividend Growth(5Y)9.97%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
7HP pays out 43.02% 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.
DP43.02%
EPS Next 2Y1.55%
EPS Next 3Y4%
FRA:7HP (12/15/2025, 7:00:00 PM)
20.84
-0.43 (-2.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners84%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap19.48B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts56
Price Target22.63 (8.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend0.99
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)-7.79%
PT rev (3m)-6.16%
EPS NQ rev (1m)-2.82%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)-8.83%
EPS NY rev (3m)-8.9%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.9 | ||
| P/S | 0.41 | ||
| P/FCF | 8.18 | ||
| P/OCF | 6.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)2.66
EY12.76%
EPS(NY)2.64
Fwd EY12.65%
FCF(TTM)2.55
FCFY12.23%
OCF(TTM)3.37
OCFY16.15%
SpS50.33
BVpS-0.31
TBVpS-8.24
PEG (NY)N/A
PEG (5Y)1.18
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
WACC7.07%
ROIC/WACC2.88
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-1%
EPS Next 2Y1.55%
EPS Next 3Y4%
EPS Next 5Y4.74%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
Revenue Next Year1.96%
Revenue Next 2Y1.67%
Revenue Next 3Y1.61%
Revenue Next 5Y1.26%
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 5Y2.76%
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 of HP INC (7HP.DE) 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.
Can you provide the PE and PB ratios for 7HP stock?
The Price/Earnings (PE) ratio for HP INC (7HP.DE) is 7.83 and the Price/Book (PB) ratio is -66.17.
What is the expected EPS growth for HP INC (7HP.DE) stock?
The Earnings per Share (EPS) of HP INC (7HP.DE) is expected to decline by -1% in the next year.