HP INC (7HP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7HP - US40434L1052 - Common Stock
18.444 EUR
+0.25 (+1.35%)
7HP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP is still in line with the averages on profitability rating, 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.
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 6.05%, 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 20.39% is amongst the best of the industry. 7HP outperforms 83.33% 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 16.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 20.39% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.43%
ROIC(5y)27.93%
1.3 Margins
7HP has a better Profit Margin (4.57%) than 70.00% of its industry peers.
7HP's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.55%, 7HP is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Operating Margin of 7HP has remained more or less at the same level.
The Gross Margin of 7HP (20.60%) is worse than 73.33% of its industry peers.
7HP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% |
OM growth 3Y-6.95%
OM growth 5Y-1.18%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
7HP has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as 7HP would need 3.45 years to pay back of all of its debts.
7HP has a Debt to FCF ratio of 3.45. This is in the better half of the industry: 7HP outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.95
WACC6.91%
2.3 Liquidity
7HP has a Current Ratio of 0.77. 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 worse Current ratio (0.77) than 86.67% of its industry peers.
A Quick Ratio of 0.48 indicates that 7HP may have some problems paying its short term obligations.
7HP's Quick ratio of 0.48 is on the low side compared to the rest of the industry. 7HP is outperformed by 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
7HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.67%.
7HP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.64% yearly.
The Revenue has been growing slightly by 3.24% in the past year.
The Revenue has been decreasing by -0.48% on average over the past years.
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
3.2 Future
The Earnings Per Share is expected to grow by 4.74% on average over the next years.
Based on estimates for the next years, 7HP will show a small growth in Revenue. The Revenue will grow by 1.26% on average per year.
EPS Next Y-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
EPS Next 5Y4.74%
Revenue Next Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y1.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 6.88, the valuation of 7HP can be described as very cheap.
7HP's Price/Earnings ratio is rather cheap when compared to the industry. 7HP is cheaper than 96.67% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.93 indicates a rather cheap valuation of 7HP.
Based on the Price/Forward Earnings ratio, 7HP is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
7HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.93 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 7HP is cheaper than 83.33% of the companies in the same industry.
7HP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 7HP is cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y1.91%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 5.39%, which is a nice return.
The stock price of 7HP dropped by -22.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
7HP's Dividend Yield is rather good when compared to the industry average which is at 1.04. 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
The dividend of 7HP is nicely growing with an annual growth rate of 9.97%!
Dividend Growth(5Y)9.97%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
43.02% 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.
DP43.02%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
FRA:7HP (1/9/2026, 1:01:13 PM)
18.444
+0.25 (+1.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.73%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap17.24B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts56
Price Target22.79 (23.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend0.99
Dividend Growth(5Y)9.97%
DP43.02%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.64%
Min EPS beat(2)-1.12%
Max EPS beat(2)-0.16%
EPS beat(4)0
Avg EPS beat(4)-3.83%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.16%
EPS beat(8)1
Avg EPS beat(8)-2.72%
EPS beat(12)2
Avg EPS beat(12)-1.72%
EPS beat(16)5
Avg EPS beat(16)-0.81%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.72%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)0.72%
Revenue beat(8)5
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-1.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)-9.07%
PT rev (3m)-5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.93 | ||
| P/S | 0.36 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.69 |
EPS(TTM)2.68
EY14.53%
EPS(NY)2.66
Fwd EY14.44%
FCF(TTM)2.57
FCFY13.91%
OCF(TTM)3.39
OCFY18.37%
SpS50.67
BVpS-0.32
TBVpS-8.29
PEG (NY)N/A
PEG (5Y)1.04
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 20.39% | ||
| ROICexc | 28.97% | ||
| ROICexgc | 2551.3% | ||
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% | ||
| FCFM | 5.06% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.43%
ROIC(5y)27.93%
ROICexc(3y)32.57%
ROICexc(5y)41.53%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.38%
ROCE(5y)40.28%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.52%
ROICexc growth 5Y-18.88%
OM growth 3Y-6.95%
OM growth 5Y-1.18%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
F-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 97.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.43% | ||
| Profit Quality | 110.72% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | N/A |
F-Score5
WACC6.91%
ROIC/WACC2.95
Cap/Depr(3y)80.3%
Cap/Depr(5y)83.29%
Cap/Sales(3y)1.29%
Cap/Sales(5y)1.21%
Profit Quality(3y)105.09%
Profit Quality(5y)104.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
EPS Next Y-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
EPS Next 5Y4.74%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
Revenue Next Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y1.26%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year13.75%
EBIT Next 3Y5.38%
EBIT Next 5Y2.76%
FCF growth 1Y-11.31%
FCF growth 3Y-8.64%
FCF growth 5Y-5.6%
OCF growth 1Y-1.39%
OCF growth 3Y-6.08%
OCF growth 5Y-3.05%
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 for 7HP 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 6 / 10.
What is the valuation of HP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HP INC (7HP.DE) is 6.88 and the Price/Book (PB) ratio is -58.17.
Can you provide the dividend sustainability for 7HP stock?
The dividend rating of HP INC (7HP.DE) is 7 / 10 and the dividend payout ratio is 43.02%.