HP INC (HPQ) Fundamental Analysis & Valuation

NYSE:HPQ • US40434L1052

Current stock price

19.44 USD
+0.12 (+0.62%)
At close:
19.32 USD
-0.12 (-0.62%)
After Hours:

This HPQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HPQ Profitability Analysis

1.1 Basic Checks

  • HPQ had positive earnings in the past year.
  • HPQ had a positive operating cash flow in the past year.
  • In the past 5 years HPQ has always been profitable.
  • In the past 5 years HPQ always reported a positive cash flow from operatings.
HPQ Yearly Net Income VS EBIT VS OCF VS FCFHPQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.04%, HPQ belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 26.16%, HPQ belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HPQ is significantly above the industry average of 15.72%.
Industry RankSector Rank
ROA 6.04%
ROE N/A
ROIC 26.16%
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.98%
ROIC(5y)35.66%
HPQ Yearly ROA, ROE, ROICHPQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -200 -400 -600 -800

1.3 Margins

  • The Profit Margin of HPQ (4.46%) is better than 78.38% of its industry peers.
  • In the last couple of years the Profit Margin of HPQ has declined.
  • HPQ's Operating Margin of 6.38% is fine compared to the rest of the industry. HPQ outperforms 75.68% of its industry peers.
  • HPQ's Operating Margin has been stable in the last couple of years.
  • HPQ has a Gross Margin (20.25%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of HPQ has grown nicely.
Industry RankSector Rank
OM 6.38%
PM (TTM) 4.46%
GM 20.25%
OM growth 3Y-6.4%
OM growth 5Y-0.83%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
HPQ Yearly Profit, Operating, Gross MarginsHPQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4

2. HPQ Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPQ is creating value.
  • Compared to 1 year ago, HPQ has less shares outstanding
  • The number of shares outstanding for HPQ has been reduced compared to 5 years ago.
  • Compared to 1 year ago, HPQ has an improved debt to assets ratio.
HPQ Yearly Shares OutstandingHPQ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
HPQ Yearly Total Debt VS Total AssetsHPQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • HPQ has an Altman-Z score of 1.61. This is a bad value and indicates that HPQ is not financially healthy and even has some risk of bankruptcy.
  • HPQ has a Altman-Z score of 1.61. This is comparable to the rest of the industry: HPQ outperforms 48.65% of its industry peers.
  • The Debt to FCF ratio of HPQ is 3.37, which is a good value as it means it would take HPQ, 3.37 years of fcf income to pay off all of its debts.
  • HPQ's Debt to FCF ratio of 3.37 is fine compared to the rest of the industry. HPQ outperforms 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Altman-Z 1.61
ROIC/WACC3.58
WACC7.31%
HPQ Yearly LT Debt VS Equity VS FCFHPQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that HPQ may have some problems paying its short term obligations.
  • HPQ's Current ratio of 0.76 is on the low side compared to the rest of the industry. HPQ is outperformed by 81.08% of its industry peers.
  • HPQ has a Quick Ratio of 0.76. This is a bad value and indicates that HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.46, HPQ is not doing good in the industry: 81.08% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.46
HPQ Yearly Current Assets VS Current LiabilitesHPQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. HPQ Growth Analysis

3.1 Past

  • HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.61%.
  • Measured over the past 5 years, HPQ shows a small growth in Earnings Per Share. The EPS has been growing by 6.64% on average per year.
  • Looking at the last year, HPQ shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
  • HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
EPS 1Y (TTM)-3.61%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%9.46%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%

3.2 Future

  • HPQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.11% yearly.
  • HPQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.30% yearly.
EPS Next Y-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
EPS Next 5Y2.11%
Revenue Next Year2.33%
Revenue Next 2Y1.35%
Revenue Next 3Y1.15%
Revenue Next 5Y1.3%

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.
HPQ Yearly Revenue VS EstimatesHPQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
HPQ Yearly EPS VS EstimatesHPQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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8

4. HPQ Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 6.08, the valuation of HPQ can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 100.00% of the companies listed in the same industry.
  • HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.89.
  • A Price/Forward Earnings ratio of 6.40 indicates a rather cheap valuation of HPQ.
  • HPQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. HPQ is cheaper than 91.89% of the companies in the same industry.
  • HPQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 6.08
Fwd PE 6.4
HPQ Price Earnings VS Forward Price EarningsHPQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • HPQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HPQ is cheaper than 100.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, HPQ is valued cheaper than 86.49% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.18
EV/EBITDA 5.37
HPQ Per share dataHPQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-1.51%
EPS Next 3Y2.47%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. HPQ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.21%, HPQ is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.61, HPQ pays a better dividend. On top of this HPQ pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, HPQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.21%

5.2 History

  • The dividend of HPQ is nicely growing with an annual growth rate of 10.14%!
  • HPQ has paid a dividend for at least 10 years, which is a reliable track record.
  • HPQ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.14%
Div Incr Years14
Div Non Decr Years34
HPQ Yearly Dividends per shareHPQ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HPQ pays out 43.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of HPQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
HPQ Yearly Income VS Free CF VS DividendHPQ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
HPQ Dividend Payout.HPQ Dividend Payout, showing the Payout Ratio.HPQ Dividend Payout.PayoutRetained Earnings

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HPQ Fundamentals: All Metrics, Ratios and Statistics

HP INC

NYSE:HPQ (3/27/2026, 8:23:49 PM)

After market: 19.32 -0.12 (-0.62%)

19.44

+0.12 (+0.62%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-24
Earnings (Next)05-26
Inst Owners90.28%
Inst Owner Change3.79%
Ins Owners0.12%
Ins Owner Change8.95%
Market Cap17.78B
Revenue(TTM)56.23B
Net Income(TTM)2.51B
Analysts55.38
Price Target20.07 (3.24%)
Short Float %11.29%
Short Ratio5.28
Dividend
Industry RankSector Rank
Dividend Yield 6.21%
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.52%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-11
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.4%
Min EPS beat(2)-0.16%
Max EPS beat(2)4.95%
EPS beat(4)1
Avg EPS beat(4)-2.22%
Min EPS beat(4)-12.57%
Max EPS beat(4)4.95%
EPS beat(8)2
Avg EPS beat(8)-1.97%
EPS beat(12)3
Avg EPS beat(12)-1.2%
EPS beat(16)5
Avg EPS beat(16)-0.9%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.54%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)2.54%
Revenue beat(8)6
Avg Revenue beat(8)0.39%
Revenue beat(12)6
Avg Revenue beat(12)-0.52%
Revenue beat(16)7
Avg Revenue beat(16)-1.08%
PT rev (1m)-15.7%
PT rev (3m)-24.87%
EPS NQ rev (1m)-4.29%
EPS NQ rev (3m)-6.7%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-5.73%
Revenue NQ rev (1m)5.17%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 6.08
Fwd PE 6.4
P/S 0.32
P/FCF 6.18
P/OCF 4.8
P/B N/A
P/tB N/A
EV/EBITDA 5.37
EPS(TTM)3.2
EY16.46%
EPS(NY)3.04
Fwd EY15.62%
FCF(TTM)3.15
FCFY16.19%
OCF(TTM)4.05
OCFY20.85%
SpS61.48
BVpS-0.84
TBVpS-11.42
PEG (NY)N/A
PEG (5Y)0.92
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 6.04%
ROE N/A
ROCE 29.29%
ROIC 26.16%
ROICexc 35.18%
ROICexgc N/A
OM 6.38%
PM (TTM) 4.46%
GM 20.25%
FCFM 5.12%
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.98%
ROIC(5y)35.66%
ROICexc(3y)41.65%
ROICexc(5y)53.01%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.56%
ROCE(5y)40.39%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.17%
ROICexc growth 5Y-18.69%
OM growth 3Y-6.4%
OM growth 5Y-0.83%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
F-Score5
Asset Turnover1.35
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Debt/EBITDA 1.97
Cap/Depr 88.75%
Cap/Sales 1.47%
Interest Coverage 250
Cash Conversion 82.01%
Profit Quality 114.71%
Current Ratio 0.76
Quick Ratio 0.46
Altman-Z 1.61
F-Score5
WACC7.31%
ROIC/WACC3.58
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)-3.61%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%9.46%
EPS Next Y-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
EPS Next 5Y2.11%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%
Revenue Next Year2.33%
Revenue Next 2Y1.35%
Revenue Next 3Y1.15%
Revenue Next 5Y1.3%
EBIT growth 1Y-12.49%
EBIT growth 3Y-10.34%
EBIT growth 5Y-1.31%
EBIT Next Year8.86%
EBIT Next 3Y4.02%
EBIT Next 5Y0.75%
FCF growth 1Y-8.14%
FCF growth 3Y-8.64%
FCF growth 5Y-5.6%
OCF growth 1Y-0.05%
OCF growth 3Y-6.08%
OCF growth 5Y-3.05%

HP INC / HPQ Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for HP INC?

ChartMill assigns a fundamental rating of 6 / 10 to HPQ.


What is the valuation status for HPQ stock?

ChartMill assigns a valuation rating of 8 / 10 to HP INC (HPQ). This can be considered as Undervalued.


How profitable is HP INC (HPQ) stock?

HP INC (HPQ) has a profitability rating of 7 / 10.


Can you provide the financial health for HPQ stock?

The financial health rating of HP INC (HPQ) is 4 / 10.


What is the earnings growth outlook for HP INC?

The Earnings per Share (EPS) of HP INC (HPQ) is expected to decline by -6.38% in the next year.