HP INC (7HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7HP - US40434L1052 - Common Stock
20.75 EUR
-0.22 (-1.05%)
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP is still in line with the averages on profitability rating, there are 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
In the past year 7HP was profitable.
In the past year 7HP had a positive cash flow from operations.
In the past 5 years 7HP has always been profitable.
In the past 5 years 7HP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.05%, 7HP is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
The Return On Invested Capital of 7HP (20.39%) is better than 78.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 18.15%.
| 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
Looking at the Profit Margin, with a value of 4.57%, 7HP is in the better half of the industry, outperforming 66.67% 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 69.70% of its industry peers.
7HP's Operating Margin has been stable in the last couple of years.
7HP's Gross Margin of 20.60% is on the low side compared to the rest of the industry. 7HP is outperformed by 69.70% of its industry peers.
7HP's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for 7HP has been reduced compared to 5 years ago.
The debt/assets ratio for 7HP has been reduced compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 3.45, 7HP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.93
WACC6.96%
2.3 Liquidity
A Current Ratio of 0.77 indicates that 7HP may have some problems paying its short term obligations.
7HP has a worse Current ratio (0.77) than 84.85% of its industry peers.
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.
7HP's Quick ratio of 0.48 is on the low side compared to the rest of the industry. 7HP is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for 7HP have decreased by -7.67% in the last year.
The Earnings Per Share has been growing slightly by 6.64% on average over the past years.
Looking at the last year, 7HP shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
7HP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
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
Based on estimates for the next years, 7HP will show a small growth in Earnings Per Share. The EPS will grow by 4.74% on average per year.
The Revenue is expected to grow by 1.27% on average over the next years.
EPS Next Y8.59%
EPS Next 2Y7.07%
EPS Next 3Y4.93%
EPS Next 5Y4.74%
Revenue Next Year1.62%
Revenue Next 2Y1.66%
Revenue Next 3Y1.37%
Revenue Next 5Y1.27%
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 7.66 indicates a rather cheap valuation of 7HP.
Based on the Price/Earnings ratio, 7HP is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
7HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 7.06, which indicates a rather cheap valuation of 7HP.
87.88% of the companies in the same industry are more expensive than 7HP, based on the Price/Forward Earnings ratio.
7HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued cheaper than 81.82% of the companies in the same industry.
84.85% 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 | 8.01 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
7HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)1.15
EPS Next 2Y7.07%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, 7HP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.16, 7HP pays a better dividend. On top of this 7HP pays more dividend than 96.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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
43.02% 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.
DP43.02%
EPS Next 2Y7.07%
EPS Next 3Y4.93%
FRA:7HP (12/1/2025, 3:46:21 PM)
20.75
-0.22 (-1.05%)
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 Cap19.40B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts65.45
Price Target25.07 (20.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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)3.41%
PT rev (3m)5.73%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.06 | ||
| P/S | 0.41 | ||
| P/FCF | 8.01 | ||
| P/OCF | 6.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)2.71
EY13.06%
EPS(NY)2.94
Fwd EY14.16%
FCF(TTM)2.59
FCFY12.48%
OCF(TTM)3.42
OCFY16.48%
SpS51.15
BVpS-0.32
TBVpS-8.37
PEG (NY)0.89
PEG (5Y)1.15
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
WACC6.96%
ROIC/WACC2.93
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 Y8.59%
EPS Next 2Y7.07%
EPS Next 3Y4.93%
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 Year1.62%
Revenue Next 2Y1.66%
Revenue Next 3Y1.37%
Revenue Next 5Y1.27%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year23.47%
EBIT Next 3Y3.64%
EBIT Next 5Y2.77%
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 9 / 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 7.66 and the Price/Book (PB) ratio is -64.83.
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 grow by 8.59% in the next year.