HP INC (HPQ) Stock Fundamental Analysis
NYSE:HPQ • US40434L1052
18.7 USD
-0.29 (-1.53%)
At close: Mar 2, 2026
18.66 USD
-0.04 (-0.21%)
After Hours: 3/2/2026, 4:07:31 PM
Overall HPQ gets a fundamental rating of 5 out of 10. We evaluated HPQ against 36 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and the financial health of HPQ get a neutral evaluation. Nothing too spectacular is happening here. HPQ is cheap, but on the other hand it scores bad on growth. Finally HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- HPQ had positive earnings in the past year.
- In the past year HPQ had a positive cash flow from operations.
- HPQ had positive earnings in each of the past 5 years.
- In the past 5 years HPQ always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 6.04%, HPQ belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- HPQ's Return On Invested Capital of 26.16% is amongst the best of the industry. HPQ outperforms 94.44% 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 16.71%.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of HPQ (4.46%) is better than 77.78% of its industry peers.
- In the last couple of years the Profit Margin of HPQ has declined.
- HPQ has a Operating Margin of 6.38%. This is in the better half of the industry: HPQ outperforms 69.44% of its industry peers.
- HPQ's Operating Margin has been stable in the last couple of years.
- HPQ's Gross Margin of 20.25% is on the low side compared to the rest of the industry. HPQ is outperformed by 63.89% of its industry peers.
- In the last couple of years the Gross Margin of HPQ has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPQ is creating value.
- HPQ has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for HPQ has been reduced compared to 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.
- HPQ has a Altman-Z score of 1.60. This is comparable to the rest of the industry: HPQ outperforms 50.00% of its industry peers.
- HPQ has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as HPQ would need 3.37 years to pay back of all of its debts.
- HPQ has a better Debt to FCF ratio (3.37) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 1.6 |
ROIC/WACC3.74
WACC6.99%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that HPQ may have some problems paying its short term obligations.
- HPQ has a Current ratio of 0.76. This is amonst the worse of the industry: HPQ underperforms 83.33% of its industry peers.
- A Quick Ratio of 0.46 indicates that HPQ may have some problems paying its short term obligations.
- HPQ has a worse Quick ratio (0.46) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- The earnings per share for HPQ have decreased by -3.61% 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.
- HPQ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
- Measured over the past years, HPQ shows a decrease in Revenue. The Revenue has been decreasing by -0.48% on average per year.
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 2.75% yearly.
- Based on estimates for the next years, HPQ will show a small growth in Revenue. The Revenue will grow by 0.95% on average per year.
EPS Next Y-1.41%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
EPS Next 5Y2.75%
Revenue Next Year1.21%
Revenue Next 2Y1.2%
Revenue Next 3Y1.27%
Revenue Next 5Y0.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 5.84 indicates a rather cheap valuation of HPQ.
- Based on the Price/Earnings ratio, HPQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of HPQ to the average of the S&P500 Index (27.07), we can say HPQ is valued rather cheaply.
- A Price/Forward Earnings ratio of 5.82 indicates a rather cheap valuation of HPQ.
- Based on the Price/Forward Earnings ratio, HPQ is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.05. HPQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, HPQ is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
- The decent profitability rating of HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y1.34%
EPS Next 3Y3.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.32%, HPQ is a good candidate for dividend investing.
- The stock price of HPQ dropped by -22.24% 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.
- HPQ's Dividend Yield is rather good when compared to the industry average which is at 0.65. HPQ pays more dividend than 100.00% of the companies 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 | 6.32% |
5.2 History
- On average, the dividend of HPQ grows each year by 10.14%, which is quite nice.
- 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
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.
- HPQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
18.7
-0.29 (-1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-26 2026-05-26/amc
Inst Owners85.73%
Inst Owner Change3.8%
Ins Owners0.25%
Ins Owner Change6.37%
Market Cap17.17B
Revenue(TTM)56.23B
Net Income(TTM)2.51B
Analysts53.85
Price Target23.8 (27.27%)
Short Float %10.5%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.52%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-11 2026-03-11 (0.3)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.3%
Min EPS beat(2)-0.16%
Max EPS beat(2)4.75%
EPS beat(4)1
Avg EPS beat(4)-2.27%
Min EPS beat(4)-12.57%
Max EPS beat(4)4.75%
EPS beat(8)2
Avg EPS beat(8)-2%
EPS beat(12)3
Avg EPS beat(12)-1.21%
EPS beat(16)5
Avg EPS beat(16)-0.92%
Revenue beat(2)2
Avg Revenue beat(2)1.3%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.53%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)2.53%
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)-10.87%
PT rev (3m)-16.98%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-2.5%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.82 | ||
| P/S | 0.31 | ||
| P/FCF | 5.96 | ||
| P/OCF | 4.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.29 |
EPS(TTM)3.2
EY17.11%
EPS(NY)3.21
Fwd EY17.19%
FCF(TTM)3.14
FCFY16.77%
OCF(TTM)4.04
OCFY21.59%
SpS61.25
BVpS-0.83
TBVpS-11.38
PEG (NY)N/A
PEG (5Y)0.88
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.6 |
F-Score5
WACC6.99%
ROIC/WACC3.74
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-1.41%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
EPS Next 5Y2.75%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%
Revenue Next Year1.21%
Revenue Next 2Y1.2%
Revenue Next 3Y1.27%
Revenue Next 5Y0.95%
EBIT growth 1Y-12.49%
EBIT growth 3Y-10.34%
EBIT growth 5Y-1.31%
EBIT Next Year11.8%
EBIT Next 3Y4.99%
EBIT Next 5Y1.23%
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 FAQ
Can you provide the ChartMill fundamental rating for HP INC?
ChartMill assigns a fundamental rating of 5 / 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 6 / 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 -1.41% in the next year.