HP INC (HPQ) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HPQ • US40434L1052
19.82 USD
+0.82 (+4.32%)
At close: Feb 4, 2026
19.76 USD
-0.06 (-0.3%)
After Hours: 2/4/2026, 7:00:00 PM
Overall HPQ gets a fundamental rating of 6 out of 10. We evaluated HPQ against 34 industry peers in the Technology Hardware, Storage & Peripherals industry. HPQ has an excellent profitability rating, but there are some minor concerns on its financial health. HPQ has a bad growth rate and is valued cheaply. HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year HPQ was profitable.
- In the past year HPQ had a positive cash flow from operations.
- HPQ had positive earnings in each of the past 5 years.
- Each year in the past 5 years HPQ had a positive operating cash flow.
1.2 Ratios
- HPQ has a better Return On Assets (6.05%) than 79.41% of its industry peers.
- HPQ's Return On Invested Capital of 25.87% is amongst the best of the industry. HPQ outperforms 94.12% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HPQ is significantly above the industry average of 16.36%.
- The 3 year average ROIC (29.98%) for HPQ is well above the current ROIC(25.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 25.87% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.98%
ROIC(5y)35.66%
1.3 Margins
- HPQ's Profit Margin of 4.57% is fine compared to the rest of the industry. HPQ outperforms 79.41% of its industry peers.
- HPQ's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 6.55%, HPQ is doing good in the industry, outperforming 73.53% of the companies in the same industry.
- HPQ's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 20.60%, HPQ is doing worse than 67.65% of the companies in the same industry.
- HPQ'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-6.4%
OM growth 5Y-0.83%
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), HPQ is creating value.
- Compared to 1 year ago, HPQ has less shares outstanding
- HPQ has less shares outstanding than it did 5 years ago.
- HPQ has a better debt/assets ratio than last year.
2.2 Solvency
- HPQ has an Altman-Z score of 1.60. This is a bad value and indicates that HPQ is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.60, HPQ is in line with its industry, outperforming 52.94% of the companies in the same industry.
- HPQ has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as HPQ would need 3.45 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.45, HPQ is doing good in the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.6 |
ROIC/WACC3.57
WACC7.25%
2.3 Liquidity
- HPQ has a Current Ratio of 0.77. This is a bad value and indicates that HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of HPQ (0.77) is worse than 82.35% of its industry peers.
- HPQ has a Quick Ratio of 0.77. 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 0.48, HPQ is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- The earnings per share for HPQ have decreased by -7.67% in the last year.
- HPQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.64% yearly.
- Looking at the last year, HPQ shows a small growth in Revenue. The Revenue has grown by 3.24% 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)-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 2.75% on average over the next years.
- Based on estimates for the next years, HPQ will show a small growth in Revenue. The Revenue will grow by 0.50% on average per year.
EPS Next Y-1.08%
EPS Next 2Y1.46%
EPS Next 3Y3.48%
EPS Next 5Y2.75%
Revenue Next Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
Revenue Next 5Y0.5%
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
- HPQ is valuated cheaply with a Price/Earnings ratio of 6.33.
- HPQ's Price/Earnings ratio is rather cheap when compared to the industry. HPQ is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HPQ to the average of the S&P500 Index (28.25), we can say HPQ is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.40, which indicates a rather cheap valuation of HPQ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 94.12% of the companies listed in the same industry.
- HPQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 6.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 100.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HPQ is valued cheaply inside the industry as 91.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 5.21 |
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)0.95
EPS Next 2Y1.46%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
- HPQ has a Yearly Dividend Yield of 6.19%, which is a nice return.
- The stock price of HPQ dropped by -24.58% 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.
- Compared to an average industry Dividend Yield of 0.67, 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 1.82, HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.14%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
- HPQ pays out 43.02% 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.
DP43.02%
EPS Next 2Y1.46%
EPS Next 3Y3.48%
19.82
+0.82 (+4.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)11-25 2025-11-25/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners85.73%
Inst Owner Change-2.06%
Ins Owners0.25%
Ins Owner Change8.3%
Market Cap18.53B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts55.83
Price Target26.71 (34.76%)
Short Float %9.12%
Short Ratio5.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.02%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-11 2026-03-11 (0.3)
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)0%
PT rev (3m)-7.01%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-8.99%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 6.4 | ||
| P/S | 0.34 | ||
| P/FCF | 6.62 | ||
| P/OCF | 5.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.21 |
EPS(TTM)3.13
EY15.79%
EPS(NY)3.1
Fwd EY15.62%
FCF(TTM)3
FCFY15.11%
OCF(TTM)3.96
OCFY19.96%
SpS59.16
BVpS-0.37
TBVpS-10.77
PEG (NY)N/A
PEG (5Y)0.95
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 25.87% | ||
| ROICexc | 36.68% | ||
| ROICexgc | N/A | ||
| 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)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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 97.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 8.29 | ||
| Cash Conversion | 81.43% | ||
| Profit Quality | 110.72% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.6 |
F-Score5
WACC7.25%
ROIC/WACC3.57
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-1.08%
EPS Next 2Y1.46%
EPS Next 3Y3.48%
EPS Next 5Y2.75%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
Revenue Next Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
Revenue Next 5Y0.5%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.34%
EBIT growth 5Y-1.31%
EBIT Next Year13.06%
EBIT Next 3Y4.8%
EBIT Next 5Y1.23%
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 / HPQ 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 -1.08% in the next year.