HP INC (HPQ) Stock Fundamental Analysis
NYSE:HPQ • US40434L1052
18.2 USD
-0.15 (-0.82%)
At close: Feb 24, 2026
17.41 USD
-0.79 (-4.34%)
Pre-Market: 2/25/2026, 5:44:12 AM
Overall HPQ gets a fundamental rating of 6 out of 10. We evaluated HPQ against 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 valued quite cheap, but it does not seem to be growing. Finally HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year HPQ was profitable.
- HPQ had a positive operating cash flow in the past year.
- In the past 5 years HPQ has always been profitable.
- 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 80.56% of its industry peers.
- HPQ has a better Return On Invested Capital (25.87%) than 94.44% 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 16.56%.
- 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
- HPQ's Profit Margin of 4.57% is amongst the best of the industry. HPQ outperforms 80.56% of its industry peers.
- In the last couple of years the Profit Margin of HPQ has declined.
- Looking at the Operating Margin, with a value of 6.55%, HPQ is in the better half of the industry, outperforming 72.22% 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 66.67% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HPQ is creating value.
- HPQ has less shares outstanding than it did 1 year ago.
- 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
- HPQ has an Altman-Z score of 1.58. 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 1.58, HPQ is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of HPQ is 3.45, which is a good value as it means it would take HPQ, 3.45 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.45, HPQ is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.58 |
ROIC/WACC3.71
WACC6.98%
2.3 Liquidity
- A Current Ratio of 0.77 indicates that HPQ may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.77, HPQ is doing worse than 83.33% of the companies in the same industry.
- 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.
- HPQ has a Quick ratio of 0.48. This is amonst the worse of the industry: HPQ underperforms 80.56% of its industry peers.
| 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.
- The Revenue has been growing slightly by 3.24% in the past 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)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%
3.2 Future
- Based on estimates for the next years, HPQ will show a small growth in Earnings Per Share. The EPS will grow by 2.75% on average per year.
- The Revenue is expected to grow by 0.95% on average over the next years.
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
- With a Price/Earnings ratio of 5.69, the valuation of HPQ can be described as very cheap.
- 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.
- HPQ is valuated cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
- HPQ is valuated cheaply with a Price/Forward Earnings ratio of 5.66.
- 94.44% of the companies in the same industry are more expensive than HPQ, based on the Price/Forward Earnings ratio.
- HPQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 5.66 |
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.
- 91.67% of the companies in the same industry are more expensive than HPQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | 4.98 |
4.3 Compensation for Growth
- The decent profitability rating of HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y1.34%
EPS Next 3Y3.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.54%, HPQ is a good candidate for dividend investing.
- In the last 3 months the price of HPQ has falen by -25.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- HPQ's Dividend Yield is rather good when compared to the industry average which is at 0.66. HPQ pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
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 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
- 43.02% of the earnings are spent on dividend by HPQ. 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 2Y1.34%
EPS Next 3Y3.26%
18.2
-0.15 (-0.82%)
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 Change2.98%
Ins Owners0.25%
Ins Owner Change6.37%
Market Cap16.71B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts53.85
Price Target23.8 (30.77%)
Short Float %10.5%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
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)-4.93%
PT rev (3m)-11.44%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-2.7%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 5.66 | ||
| P/S | 0.3 | ||
| P/FCF | 5.97 | ||
| P/OCF | 4.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.98 |
EPS(TTM)3.2
EY17.58%
EPS(NY)3.21
Fwd EY17.66%
FCF(TTM)3.05
FCFY16.76%
OCF(TTM)4.03
OCFY22.13%
SpS60.24
BVpS-0.38
TBVpS-10.96
PEG (NY)N/A
PEG (5Y)0.86
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 | 1.58 |
F-Score5
WACC6.98%
ROIC/WACC3.71
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.