HP INC (HPQ) Stock Fundamental Analysis
NYSE:HPQ • US40434L1052
18.7 USD
-0.29 (-1.53%)
At close: Mar 2, 2026
18.7 USD
0 (0%)
After Hours: 3/2/2026, 8:25:54 PM
HPQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Technology Hardware, Storage & Peripherals industry. HPQ has only an average score on both its financial health and profitability. HPQ has a bad growth rate and is valued cheaply. Finally HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- HPQ had positive earnings in the past year.
- HPQ had a positive operating cash flow in the past year.
- Each year in the past 5 years HPQ has been profitable.
- 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 16.73%.
| 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
- With a decent Profit Margin value of 4.46%, HPQ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- In the last couple of years the Profit Margin of HPQ has declined.
- With a decent Operating Margin value of 6.38%, HPQ is doing good in the industry, outperforming 69.44% 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 20.25%, HPQ is doing worse than 63.89% 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 | 6.38% | ||
| 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.
- Compared to 1 year ago, HPQ has less shares outstanding
- 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
- 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.
- 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.
- The Debt to FCF ratio of HPQ is 3.37, which is a good value as it means it would take HPQ, 3.37 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HPQ (3.37) is better than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 1.6 |
ROIC/WACC3.75
WACC6.97%
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.
- With a Current ratio value of 0.76, HPQ is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- HPQ has a Quick 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 Quick ratio of HPQ (0.46) is worse 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.
- 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.
- Looking at the last year, HPQ shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
- 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 2.75% 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
- 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
- A Price/Earnings ratio of 5.84 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 (27.13), we can say HPQ is valued rather cheaply.
- HPQ is valuated cheaply with a Price/Forward Earnings ratio of 5.82.
- 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.82 |
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 | 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.
- In the last 3 months the price of HPQ has falen by -27.83%. 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 0.65. 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 been paying a dividend for at least 10 years, so it has 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
- 43.52% 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 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
WACC6.97%
ROIC/WACC3.75
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.