HP INC (HPQ) Stock Fundamental Analysis
NYSE:HPQ • US40434L1052
18.99 USD
+0.18 (+0.96%)
At close: Feb 27, 2026
18.95 USD
-0.04 (-0.21%)
After Hours: 2/27/2026, 8:08:51 PM
Taking everything into account, HPQ scores 6 out of 10 in our fundamental rating. HPQ was compared to 36 industry peers in the Technology Hardware, Storage & Peripherals industry. While HPQ has a great profitability rating, there are some minor concerns on its financial health. 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.
- Each year in the past 5 years HPQ has been profitable.
- HPQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HPQ has a better Return On Assets (6.05%) than 83.33% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 25.87%, HPQ belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- HPQ had an Average Return On Invested Capital over the past 3 years of 29.98%. This is significantly above the industry average of 16.71%.
- The last Return On Invested Capital (25.87%) for HPQ is well below the 3 year average (29.98%), which needs to be investigated, but indicates that HPQ had better years and this may not be a problem.
| 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
- Looking at the Profit Margin, with a value of 4.57%, HPQ is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- HPQ's Profit Margin has declined in the last couple of years.
- HPQ's Operating Margin of 6.55% is fine compared to the rest of the industry. HPQ outperforms 72.22% of its industry peers.
- 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 of 20.60%. This is in the lower half of the industry: HPQ underperforms 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 | 6.55% | ||
| 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.
- Compared to 1 year ago, HPQ has an improved debt to assets ratio.
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 (1.60) which is comparable to the rest of the 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.
- The Debt to FCF ratio of HPQ (3.45) is better than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.6 |
ROIC/WACC3.7
WACC6.99%
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 83.33% of its industry peers.
- A Quick Ratio of 0.48 indicates that HPQ may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.48, HPQ is doing worse than 80.56% of the companies in the same industry.
| 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 -3.61% in the last year.
- 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 3.24%.
- 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)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%
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 0.95% 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
- 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.
- 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
- The Price/Earnings ratio is 5.93, which indicates a rather cheap valuation of HPQ.
- 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 (27.07), we can say HPQ is valued rather cheaply.
- The Price/Forward Earnings ratio is 5.91, which 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 94.44% of the companies in the same industry.
- HPQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.93 | ||
| Fwd PE | 5.91 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 5.14 |
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)0.89
EPS Next 2Y1.34%
EPS Next 3Y3.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.38%, HPQ is a good candidate for dividend investing.
- In the last 3 months the price of HPQ has falen by -22.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.65, 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 | 6.38% |
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 43.02% 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.
DP43.02%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
18.99
+0.18 (+0.96%)
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 Cap17.43B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts53.85
Price Target23.8 (25.33%)
Short Float %10.5%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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)-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 | 5.93 | ||
| Fwd PE | 5.91 | ||
| P/S | 0.32 | ||
| P/FCF | 6.23 | ||
| P/OCF | 4.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.14 |
EPS(TTM)3.2
EY16.85%
EPS(NY)3.21
Fwd EY16.93%
FCF(TTM)3.05
FCFY16.06%
OCF(TTM)4.03
OCFY21.21%
SpS60.24
BVpS-0.38
TBVpS-10.96
PEG (NY)N/A
PEG (5Y)0.89
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
WACC6.99%
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-1.41%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
EPS Next 5Y2.75%
Revenue 1Y (TTM)3.24%
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-13.76%
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-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 -1.41% in the next year.