HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - Deutsche Boerse Ag - US40434L1052 - Common Stock - Currency: EUR
Overall 7HP gets a fundamental rating of 5 out of 10. We evaluated 7HP against 30 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 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.
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
7HP has a Return On Assets of 6.95%. This is amongst the best in the industry. 7HP outperforms 81.48% of its industry peers.
7HP has a Return On Invested Capital of 31.55%. This is amongst the best in the industry. 7HP outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 16.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | N/A | ||
| ROIC | 31.55% |
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's Profit Margin of 5.18% is fine compared to the rest of the industry. 7HP outperforms 62.96% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP has a better Operating Margin (7.85%) than 62.96% of its industry peers.
In the last couple of years the Operating Margin of 7HP has grown nicely.
Looking at the Gross Margin, with a value of 22.07%, 7HP is doing worse than 70.37% of the companies in the same industry.
7HP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 5.18% | ||
| GM | 22.07% |
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
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.
Compared to 5 years ago, 7HP has less shares outstanding
The debt/assets ratio for 7HP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that 7HP is in the distress zone and has some risk of bankruptcy.
7HP has a Altman-Z score (1.79) which is in line with its industry peers.
7HP has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as 7HP would need 3.06 years to pay back of all of its debts.
7HP has a Debt to FCF ratio of 3.06. This is in the better half of the industry: 7HP outperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 1.79 |
ROIC/WACC2.94
WACC10.74%
2.3 Liquidity
A Current Ratio of 0.72 indicates that 7HP may have some problems paying its short term obligations.
7HP's Current ratio of 0.72 is on the low side compared to the rest of the industry. 7HP is outperformed by 88.89% of its industry peers.
A Quick Ratio of 0.45 indicates that 7HP may have some problems paying its short term obligations.
The Quick ratio of 7HP (0.45) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
7HP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.42%.
The Earnings Per Share has been growing by 8.74% on average over the past years. This is quite good.
The Revenue has decreased by -0.30% 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)2.42%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%3.33%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%1.72%
3.2 Future
7HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.13% yearly.
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 Year2.58%
Revenue Next 2Y2.75%
Revenue Next 3Y2.07%
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.
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 9.46 indicates a reasonable valuation of 7HP.
7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 92.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. 7HP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of 7HP.
7HP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 8.87 |
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 62.96% of the companies listed in the same industry.
77.78% 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 | 9.53 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
7HP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)1.08
EPS Next 2Y5.56%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.05. 7HP pays more dividend than 92.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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 38.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.74%
EPS Next 2Y5.56%
EPS Next 3Y6.31%
HP INC
FRA:7HP (2/4/2025, 7:00:00 PM)
31.03
-0.25 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners80.54%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap29.10B
Analysts67.62
Price Target34.8 (12.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend1.12
Dividend Growth(5Y)11.65%
DP38.74%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.69%
Min EPS beat(2)-4.43%
Max EPS beat(2)-0.96%
EPS beat(4)1
Avg EPS beat(4)-1.6%
Min EPS beat(4)-4.43%
Max EPS beat(4)0.02%
EPS beat(8)2
Avg EPS beat(8)-0.67%
EPS beat(12)5
Avg EPS beat(12)0.2%
EPS beat(16)9
Avg EPS beat(16)3.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)0.59%
Revenue beat(8)2
Avg Revenue beat(8)-1.54%
Revenue beat(12)4
Avg Revenue beat(12)-1.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)-2.72%
PT rev (3m)4.94%
EPS NQ rev (1m)-4.41%
EPS NQ rev (3m)-16.73%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.56 | ||
| P/FCF | 9.53 | ||
| P/OCF | 8.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.24 |
EPS(TTM)3.28
EY10.57%
EPS(NY)3.5
Fwd EY11.28%
FCF(TTM)3.26
FCFY10.5%
OCF(TTM)3.87
OCFY12.47%
SpS55.26
BVpS-1.37
TBVpS-11.63
PEG (NY)1.41
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | N/A | ||
| ROCE | 37.44% | ||
| ROIC | 31.55% | ||
| ROICexc | 44.36% | ||
| ROICexgc | N/A | ||
| OM | 7.85% | ||
| PM (TTM) | 5.18% | ||
| GM | 22.07% | ||
| FCFM | 5.89% |
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-Score6
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 71.33% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 9.53 | ||
| Cash Conversion | 74.5% | ||
| Profit Quality | 113.77% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.79 |
F-Score6
WACC10.74%
ROIC/WACC2.94
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)2.42%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%3.33%
EPS Next Y6.69%
EPS Next 2Y5.56%
EPS Next 3Y6.31%
EPS Next 5Y5.13%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%1.72%
Revenue Next Year2.58%
Revenue Next 2Y2.75%
Revenue Next 3Y2.07%
Revenue Next 5Y1.11%
EBIT growth 1Y-0.5%
EBIT growth 3Y-9.21%
EBIT growth 5Y0.07%
EBIT Next Year17.67%
EBIT Next 3Y3.44%
EBIT Next 5Y1.51%
FCF growth 1Y6.58%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y4.98%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%