HP INC (7HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7HP - US40434L1052 - Common Stock
21.135 EUR
+0.64 (+3.1%)
Overall 7HP gets a fundamental rating of 5 out of 10. We evaluated 7HP against 32 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 is valued quite cheap, but it does not seem to be growing. Finally 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.
7HP had positive earnings in each of the past 5 years.
7HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
7HP has a Return On Assets of 6.62%. This is in the better half of the industry: 7HP outperforms 78.13% of its industry peers.
7HP has a Return On Invested Capital of 25.92%. This is amongst the best in the industry. 7HP outperforms 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 18.18%.
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
7HP has a Profit Margin of 4.83%. This is in the better half of the industry: 7HP outperforms 65.63% of its industry peers.
In the last couple of years the Profit Margin of 7HP has remained more or less at the same level.
7HP has a Operating Margin of 6.71%. This is in the better half of the industry: 7HP outperforms 68.75% 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: 68.75% of the companies in the same industry are doing better.
7HP's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 7HP is creating value.
The number of shares outstanding for 7HP has been reduced compared to 1 year ago.
7HP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 7HP has an improved debt to assets ratio.
2.2 Solvency
7HP has a debt to FCF ratio of 3.38. 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 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.64
WACC7.13%
2.3 Liquidity
7HP has a Current Ratio of 0.74. 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 0.74, 7HP is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
7HP has a Quick Ratio of 0.74. 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 Quick ratio of 0.44. This is amonst the worse of the industry: 7HP underperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
7HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.85%.
The Earnings Per Share has been growing by 8.74% on average over the past years. This is quite good.
Looking at the last year, 7HP shows a small growth in Revenue. The Revenue has grown by 2.61% in the last year.
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.
Based on estimates for the next years, 7HP will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-7.17%
EPS Next 2Y0.13%
EPS Next 3Y1.91%
EPS Next 5Y2.13%
Revenue Next Year3.06%
Revenue Next 2Y2.34%
Revenue Next 3Y2.13%
Revenue Next 5Y1.32%
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
With a Price/Earnings ratio of 7.80, the valuation of 7HP can be described as very cheap.
Based on the Price/Earnings ratio, 7HP is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.65, 7HP is valued rather cheaply.
A Price/Forward Earnings ratio of 7.18 indicates a rather cheap valuation of 7HP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 81.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. 7HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 7HP indicates a somewhat cheap valuation: 7HP is cheaper than 78.13% of the companies listed in the same industry.
81.25% 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 | 8.02 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y0.13%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, 7HP is a good candidate for dividend investing.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.34. 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y0.13%
EPS Next 3Y1.91%
FRA:7HP (11/24/2025, 7:00:00 PM)
21.135
+0.64 (+3.1%)
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 Cap19.75B
Revenue(TTM)54.71B
Net Income(TTM)2.64B
Analysts65.45
Price Target25.07 (18.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend0.97
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)3.41%
PT rev (3m)5.73%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 7.18 | ||
| P/S | 0.42 | ||
| P/FCF | 8.02 | ||
| P/OCF | 6.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.44 |
EPS(TTM)2.71
EY12.82%
EPS(NY)2.94
Fwd EY13.93%
FCF(TTM)2.63
FCFY12.47%
OCF(TTM)3.43
OCFY16.21%
SpS50.7
BVpS-0.84
TBVpS-8.91
PEG (NY)N/A
PEG (5Y)0.89
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
WACC7.13%
ROIC/WACC3.64
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-7.17%
EPS Next 2Y0.13%
EPS Next 3Y1.91%
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 Year3.06%
Revenue Next 2Y2.34%
Revenue Next 3Y2.13%
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%
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 7 / 10.
Can you provide the PE and PB ratios for 7HP stock?
The Price/Earnings (PE) ratio for HP INC (7HP.DE) is 7.8 and the Price/Book (PB) ratio is -25.31.
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 -7.17% in the next year.