HP INC (HPQ) Stock Fundamental Analysis
NYSE:HPQ • US40434L1052
18.35 USD
-0.14 (-0.76%)
At close: Feb 18, 2026
18.35 USD
0 (0%)
Pre-Market: 2/19/2026, 5:25:33 AM
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 belongs to the best of the industry regarding profitability, 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
- HPQ had positive earnings in the past year.
- In the past year HPQ had a positive cash flow from operations.
- In the past 5 years HPQ has always been profitable.
- In the past 5 years HPQ always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HPQ (6.05%) is better than 80.56% of its industry peers.
- The Return On Invested Capital of HPQ (25.87%) is better than 94.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HPQ is significantly above the industry average of 16.56%.
- 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
- With an excellent Profit Margin value of 4.57%, HPQ belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
- 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.
- HPQ has a Gross Margin of 20.60%. This is in the lower half of the industry: HPQ underperforms 66.67% 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.
- HPQ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HPQ has less shares outstanding
- Compared to 1 year ago, HPQ has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.59, we must say that HPQ is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.59, HPQ perfoms like the industry average, outperforming 50.00% 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.
- HPQ's Debt to FCF ratio of 3.45 is fine compared to the rest of the industry. HPQ outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.59 |
ROIC/WACC3.7
WACC7%
2.3 Liquidity
- A Current Ratio of 0.77 indicates that HPQ may have some problems paying its short term obligations.
- HPQ has a Current ratio of 0.77. This is amonst the worse of the industry: HPQ underperforms 83.33% of its industry peers.
- A Quick Ratio of 0.48 indicates that HPQ may have some problems paying 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
- HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.67%.
- Measured over the past 5 years, HPQ shows a small growth in Earnings Per Share. The EPS has been growing by 6.64% on average per year.
- HPQ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
- 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.
- 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 Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
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
- Based on the Price/Earnings ratio of 5.86, the valuation of HPQ can be described as very cheap.
- 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 (27.27), we can say HPQ is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.95, the valuation of HPQ can be described as very cheap.
- HPQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. HPQ is cheaper than 91.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HPQ to the average of the S&P500 Index (28.16), we can say HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.95 |
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.
- HPQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HPQ is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 5.01 |
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)0.88
EPS Next 2Y1.34%
EPS Next 3Y3.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.36%, HPQ is a good candidate for dividend investing.
- The stock price of HPQ dropped by -23.41% 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.
- HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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 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
- 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%
18.35
-0.14 (-0.76%)
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)02-24 2026-02-24/amc
Inst Owners85.73%
Inst Owner Change-0.68%
Ins Owners0.25%
Ins Owner Change6.37%
Market Cap16.84B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts53.85
Price Target25.39 (38.37%)
Short Float %10.5%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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)-11.59%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.95 | ||
| P/S | 0.3 | ||
| P/FCF | 6.02 | ||
| P/OCF | 4.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.01 |
EPS(TTM)3.13
EY17.06%
EPS(NY)3.09
Fwd EY16.82%
FCF(TTM)3.05
FCFY16.62%
OCF(TTM)4.03
OCFY21.95%
SpS60.24
BVpS-0.38
TBVpS-10.96
PEG (NY)N/A
PEG (5Y)0.88
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 | 1.59 |
F-Score5
WACC7%
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)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
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%4.16%
Revenue Next Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
Revenue Next 5Y0.95%
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 -1.41% in the next year.