HP INC (HPQ) Fundamental Analysis & Valuation
NYSE:HPQ • US40434L1052
18.46 USD
-0.33 (-1.76%)
At close: Mar 11, 2026
18.43 USD
-0.03 (-0.16%)
After Hours: 3/11/2026, 7:18:02 PM
This HPQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
HPQ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Technology Hardware, Storage & Peripherals industry. While HPQ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HPQ is valued quite cheap, but it does not seem to be growing. HPQ also has an excellent dividend rating.
1. HPQ Profitability Analysis
1.1 Basic Checks
- In the past year HPQ was profitable.
- HPQ had a positive operating cash flow in the past year.
- HPQ had positive earnings in each of the past 5 years.
- HPQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HPQ has a Return On Assets of 6.04%. This is amongst the best in the industry. HPQ outperforms 83.78% of its industry peers.
- HPQ has a Return On Invested Capital of 26.16%. This is amongst the best in the industry. HPQ outperforms 94.59% of its industry peers.
- HPQ had an Average Return On Invested Capital over the past 3 years of 29.98%. This is significantly above the industry average of 15.92%.
| 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 78.38% of its industry peers.
- HPQ's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 6.38%, HPQ is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
- In the last couple of years the Operating Margin of HPQ has remained more or less at the same level.
- HPQ has a Gross Margin (20.25%) which is comparable to the rest of the industry.
- HPQ's Gross Margin has improved in the last couple of years.
| 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. HPQ Health Analysis
2.1 Basic Checks
- HPQ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, HPQ has less shares outstanding
- Compared to 5 years ago, HPQ has less shares outstanding
- The debt/assets ratio for HPQ has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.60, we must say that HPQ is in the distress zone and 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 51.35% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 3.37, HPQ is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 1.6 |
ROIC/WACC3.7
WACC7.07%
2.3 Liquidity
- HPQ has a Current 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.
- The Current ratio of HPQ (0.76) is worse than 81.08% 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 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.46 |
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%.
- The Earnings Per Share has been growing slightly by 6.64% on average over the past years.
- HPQ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
- The Revenue has been decreasing by -0.48% on average over the past years.
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.
- The Revenue is expected to grow by 1.30% on average over the next years.
EPS Next Y-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
EPS Next 5Y2.11%
Revenue Next Year2.39%
Revenue Next 2Y1.39%
Revenue Next 3Y1.18%
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.
4. HPQ Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 5.77 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 (26.15), we can say HPQ is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.08, which indicates a rather cheap valuation of HPQ.
- 94.59% of the companies in the same industry are more expensive than HPQ, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.27. HPQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.77 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than HPQ, based on the Enterprise Value to EBITDA ratio.
- HPQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HPQ is cheaper than 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 5.24 |
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)0.87
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
5. HPQ Dividend Analysis
5.1 Amount
- HPQ has a Yearly Dividend Yield of 6.20%, which is a nice return.
- The stock price of HPQ dropped by -25.38% 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 0.63, HPQ pays a better dividend. On top of this HPQ pays more dividend than 100.00% of the companies listed in the same industry.
- HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
5.2 History
- The dividend of HPQ is nicely growing with an annual growth rate of 10.14%!
- HPQ has been paying a dividend for at least 10 years, so it has 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
- 43.52% of the earnings are spent on dividend by HPQ. 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 2Y-1.51%
EPS Next 3Y2.47%
HPQ Fundamentals: All Metrics, Ratios and Statistics
18.46
-0.33 (-1.76%)
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 Owners90.28%
Inst Owner Change3.8%
Ins Owners0.12%
Ins Owner Change6.59%
Market Cap16.88B
Revenue(TTM)56.23B
Net Income(TTM)2.51B
Analysts55.38
Price Target23.8 (28.93%)
Short Float %10.39%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
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)2.4%
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)-6.25%
PT rev (3m)-10.87%
EPS NQ rev (1m)-6.2%
EPS NQ rev (3m)-6.94%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-5.44%
Revenue NQ rev (1m)5.24%
Revenue NQ rev (3m)4.63%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.77 | ||
| Fwd PE | 6.08 | ||
| P/S | 0.3 | ||
| P/FCF | 5.87 | ||
| P/OCF | 4.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.24 |
EPS(TTM)3.2
EY17.33%
EPS(NY)3.04
Fwd EY16.45%
FCF(TTM)3.15
FCFY17.05%
OCF(TTM)4.05
OCFY21.95%
SpS61.48
BVpS-0.84
TBVpS-11.42
PEG (NY)N/A
PEG (5Y)0.87
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
WACC7.07%
ROIC/WACC3.7
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 Year2.39%
Revenue Next 2Y1.39%
Revenue Next 3Y1.18%
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 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.