HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - Deutsche Boerse Ag - US40434L1052 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 28 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP has an excellent profitability rating, but there are some minor concerns on its financial health. 7HP is cheap, but on the other hand it scores bad on growth. Finally 7HP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
7HP had positive earnings in the past year.
7HP had a positive operating cash flow in the past year.
In the past 5 years 7HP has always been profitable.
Each year in the past 5 years 7HP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.98%, 7HP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
7HP has a better Return On Invested Capital (30.02%) than 89.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 15.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | N/A | ||
| ROIC | 30.02% |
ROA(3y)7.97%
ROA(5y)9.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.41%
1.3 Margins
7HP has a Profit Margin of 5.04%. This is in the better half of the industry: 7HP outperforms 67.86% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP's Operating Margin of 7.61% is fine compared to the rest of the industry. 7HP outperforms 67.86% of its industry peers.
7HP's Operating Margin has improved in the last couple of years.
7HP's Gross Margin of 21.85% is on the low side compared to the rest of the industry. 7HP is outperformed by 64.29% of its industry peers.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.61% | ||
| PM (TTM) | 5.04% | ||
| GM | 21.85% |
OM growth 3Y-3.92%
OM growth 5Y1.94%
PM growth 3Y-20.32%
PM growth 5Y-0.69%
GM growth 3Y1.45%
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.
Compared to 5 years ago, 7HP has less shares outstanding
7HP has a better debt/assets ratio than last year.
2.2 Solvency
7HP has an Altman-Z score of 1.82. This is not the best score and indicates that 7HP is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.82, 7HP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
7HP has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as 7HP would need 2.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.97, 7HP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 1.82 |
ROIC/WACC3.91
WACC7.68%
2.3 Liquidity
A Current Ratio of 0.72 indicates that 7HP may have some problems paying its short term obligations.
With a Current ratio value of 0.72, 7HP is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
7HP has a Quick Ratio of 0.72. 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 0.42. This is amonst the worse of the industry: 7HP underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| 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 -1.48%.
7HP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
The Revenue has been growing slightly by 1.51% in the past 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)-1.48%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-8.64%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%2.42%
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 5.13% on average per year.
7HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.11% yearly.
EPS Next Y6.69%
EPS Next 2Y5.56%
EPS Next 3Y6.31%
EPS Next 5Y5.13%
Revenue Next Year3.18%
Revenue Next 2Y2.89%
Revenue Next 3Y2.32%
Revenue Next 5Y1.11%
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
The Price/Earnings ratio is 9.06, which indicates a very decent valuation of 7HP.
Based on the Price/Earnings ratio, 7HP is valued cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of 7HP to the average of the S&P500 Index (29.35), we can say 7HP is valued rather cheaply.
A Price/Forward Earnings ratio of 7.97 indicates a rather cheap valuation of 7HP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 7HP indicates a somewhat cheap valuation: 7HP is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 7HP to the average of the S&P500 Index (22.10), we can say 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 7HP is cheaper than 67.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.69 | ||
| EV/EBITDA | 7.14 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
7HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)1.04
EPS Next 2Y5.56%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.25, 7HP pays a better dividend. On top of this 7HP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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
39.48% of the earnings are spent on dividend by 7HP. This is a low number and sustainable payout ratio.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y5.56%
EPS Next 3Y6.31%
FRA:7HP (3/7/2025, 7:00:00 PM)
27.72
+0.28 (+1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.73%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap26.13B
Analysts67
Price Target35.91 (29.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.03
Dividend Growth(5Y)11.65%
DP39.48%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.23%
Min EPS beat(2)-1.5%
Max EPS beat(2)-0.96%
EPS beat(4)1
Avg EPS beat(4)-1.72%
Min EPS beat(4)-4.43%
Max EPS beat(4)0.02%
EPS beat(8)2
Avg EPS beat(8)-0.68%
EPS beat(12)4
Avg EPS beat(12)-0.47%
EPS beat(16)8
Avg EPS beat(16)0.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.04%
Revenue beat(4)3
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.15%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)3.19%
PT rev (3m)2.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.97 | ||
| P/S | 0.53 | ||
| P/FCF | 8.69 | ||
| P/OCF | 7.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.14 |
EPS(TTM)3.06
EY11.04%
EPS(NY)3.48
Fwd EY12.55%
FCF(TTM)3.19
FCFY11.51%
OCF(TTM)3.91
OCFY14.11%
SpS52.64
BVpS-1.05
TBVpS-10.67
PEG (NY)1.35
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | N/A | ||
| ROCE | 35.65% | ||
| ROIC | 30.02% | ||
| ROICexc | 40.06% | ||
| ROICexgc | N/A | ||
| OM | 7.61% | ||
| PM (TTM) | 5.04% | ||
| GM | 21.85% | ||
| FCFM | 6.06% |
ROA(3y)7.97%
ROA(5y)9.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.41%
ROICexc(3y)43.22%
ROICexc(5y)62.59%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.59%
ROCE(5y)43.67%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.23%
ROICexc growth 5Y-14.33%
OM growth 3Y-3.92%
OM growth 5Y1.94%
PM growth 3Y-20.32%
PM growth 5Y-0.69%
GM growth 3Y1.45%
GM growth 5Y3.02%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 89.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.34% | ||
| Profit Quality | 120.16% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.82 |
F-Score7
WACC7.68%
ROIC/WACC3.91
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)108.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.48%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-8.64%
EPS Next Y6.69%
EPS Next 2Y5.56%
EPS Next 3Y6.31%
EPS Next 5Y5.13%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%2.42%
Revenue Next Year3.18%
Revenue Next 2Y2.89%
Revenue Next 3Y2.32%
Revenue Next 5Y1.11%
EBIT growth 1Y-3.76%
EBIT growth 3Y-9.21%
EBIT growth 5Y0.07%
EBIT Next Year17.78%
EBIT Next 3Y4.59%
EBIT Next 5Y1.51%
FCF growth 1Y57.02%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y43.44%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%