HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
21.495 EUR
-0.21 (-0.99%)
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP belongs to the best of the industry regarding profitability, there are concerns on its financial health. 7HP is cheap, but on the other hand it scores bad on growth. 7HP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 7HP was profitable.
7HP had a positive operating cash flow in the past year.
7HP had positive earnings in each of the past 5 years.
Each year in the past 5 years 7HP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 7HP (6.62%) is better than 72.41% of its industry peers.
7HP has a better Return On Invested Capital (25.92%) than 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 7HP is significantly above the industry average of 18.98%.
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
The Profit Margin of 7HP (4.83%) is better than 68.97% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP's Operating Margin of 6.71% is fine compared to the rest of the industry. 7HP outperforms 72.41% of its industry peers.
7HP's Operating Margin has improved in the last couple of years.
7HP has a Gross Margin of 20.89%. This is in the lower half of the industry: 7HP underperforms 68.97% of its industry peers.
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
7HP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 7HP has been reduced compared to 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
The Debt to FCF ratio of 7HP is 3.38, which is a good value as it means it would take 7HP, 3.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.38, 7HP is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.61
WACC7.18%
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.
7HP has a Current ratio of 0.74. This is amonst the worse of the industry: 7HP underperforms 86.21% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.44, 7HP is doing worse than 93.10% of the companies in the same industry.
| 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%.
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 2.61%.
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
Based on estimates for the next years, 7HP will show a small growth in Earnings Per Share. The EPS will grow by 2.13% on average per year.
The Revenue is expected to grow by 1.32% on average over the next years.
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.
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
7HP is valuated cheaply with a Price/Earnings ratio of 7.99.
7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 96.55% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.35, 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 86.21% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than 79.31% of the companies in the same industry.
82.76% 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 | 8.21 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y0.13%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.42%, which is a nice return.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.07. 7HP pays more dividend than 96.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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
7HP pays out 40.95% of its income as dividend. 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 (11/14/2025, 10:14:54 AM)
21.495
-0.21 (-0.99%)
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 Cap20.09B
Revenue(TTM)54.71B
Net Income(TTM)2.64B
Analysts65.45
Price Target24.54 (14.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Yearly Dividend0.96
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)1.24%
PT rev (3m)3.79%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.35 | ||
| P/S | 0.43 | ||
| P/FCF | 8.21 | ||
| P/OCF | 6.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.61 |
EPS(TTM)2.69
EY12.51%
EPS(NY)2.93
Fwd EY13.61%
FCF(TTM)2.62
FCFY12.18%
OCF(TTM)3.4
OCFY15.83%
SpS50.38
BVpS-0.83
TBVpS-8.85
PEG (NY)N/A
PEG (5Y)0.91
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
WACC7.18%
ROIC/WACC3.61
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 7 / 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 7.99 and the Price/Book (PB) ratio is -25.91.
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.