HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
23.22 EUR
-0.14 (-0.6%)
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 belongs to the best of the industry regarding profitability, 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.
7HP had positive earnings in each of the past 5 years.
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 6.62%, 7HP is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
7HP's Return On Invested Capital of 25.92% is amongst the best of the industry. 7HP outperforms 90.00% of its industry peers.
7HP had an Average Return On Invested Capital over the past 3 years of 31.68%. This is significantly above the industry average of 17.60%.
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 70.00% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP has a Operating Margin of 6.71%. This is in the better half of the industry: 7HP outperforms 73.33% of its industry peers.
7HP's Operating Margin has improved in the last couple of years.
7HP's Gross Margin of 20.89% is on the low side compared to the rest of the industry. 7HP is outperformed by 70.00% of its industry peers.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 7HP is creating value.
Compared to 1 year ago, 7HP has less shares outstanding
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
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.56
WACC7.28%
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.
The Current ratio of 7HP (0.74) is worse than 86.67% of its industry peers.
A Quick Ratio of 0.44 indicates that 7HP may have some problems paying its short term obligations.
7HP's Quick ratio of 0.44 is on the low side compared to the rest of the industry. 7HP is outperformed by 90.00% 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.
The Revenue has been growing slightly by 2.61% in the past year.
7HP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
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.
7HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
EPS Next 5Y2.13%
Revenue Next Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
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
The Price/Earnings ratio is 8.60, which indicates a very decent valuation of 7HP.
Based on the Price/Earnings ratio, 7HP is valued cheaply inside the industry as 93.33% 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 27.70.
A Price/Forward Earnings ratio of 7.96 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 83.33% 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 (23.15), we can say 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.86 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, 7HP is a good candidate for dividend investing.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.37. 7HP pays more dividend than 93.33% of the companies in the same industry.
7HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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.
7HP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
FRA:7HP (10/9/2025, 7:00:00 PM)
23.22
-0.14 (-0.6%)
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 Cap21.70B
Analysts66.36
Price Target24.24 (4.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend0.95
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)2.24%
PT rev (3m)0.8%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 7.96 | ||
| P/S | 0.46 | ||
| P/FCF | 8.86 | ||
| P/OCF | 6.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.96 |
EPS(TTM)2.7
EY11.63%
EPS(NY)2.92
Fwd EY12.56%
FCF(TTM)2.62
FCFY11.28%
OCF(TTM)3.41
OCFY14.67%
SpS50.41
BVpS-0.83
TBVpS-8.86
PEG (NY)N/A
PEG (5Y)0.98
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%
ROICexcg growth 3YN/A
ROICexcg 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
WACC7.28%
ROIC/WACC3.56
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-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
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 Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
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%