HP INC (HPQ) Fundamental Analysis & Valuation

NYSE:HPQ • US40434L1052

Current stock price

19 USD
+0.74 (+4.05%)
Last:

This HPQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

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.
  • Each year in the past 5 years HPQ has been profitable.
  • Each year in the past 5 years HPQ had a positive operating cash flow.
HPQ Yearly Net Income VS EBIT VS OCF VS FCFHPQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • HPQ has a Return On Assets of 6.04%. This is amongst the best in the industry. HPQ outperforms 86.49% of its industry peers.
  • The Return On Invested Capital of HPQ (26.16%) is better than 94.59% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for HPQ is significantly above the industry average of 15.19%.
Industry RankSector 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%
HPQ Yearly ROA, ROE, ROICHPQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -200 -400 -600 -800

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.46%, HPQ is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HPQ has declined.
  • HPQ has a better Operating Margin (6.38%) than 75.68% of its industry peers.
  • In the last couple of years the Operating Margin of HPQ has remained more or less at the same level.
  • The Gross Margin of HPQ (20.25%) is worse than 62.16% of its industry peers.
  • HPQ's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
HPQ Yearly Profit, Operating, Gross MarginsHPQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • The number of shares outstanding for HPQ has been reduced compared to 1 year ago.
  • 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.
HPQ Yearly Shares OutstandingHPQ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
HPQ Yearly Total Debt VS Total AssetsHPQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • HPQ has an Altman-Z score of 1.59. This is a bad value and indicates that HPQ is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 1.59, HPQ perfoms like the industry average, outperforming 43.24% 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.
  • The Debt to FCF ratio of HPQ (3.37) is better than 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Altman-Z 1.59
ROIC/WACC3.65
WACC7.16%
HPQ Yearly LT Debt VS Equity VS FCFHPQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that HPQ may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.76, HPQ is doing worse than 83.78% of the companies in the same industry.
  • A Quick Ratio of 0.46 indicates that HPQ may have some problems paying its short term obligations.
  • The Quick ratio of HPQ (0.46) is worse than 83.78% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.46
HPQ Yearly Current Assets VS Current LiabilitesHPQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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%.
  • HPQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.64% yearly.
  • The Revenue has been growing slightly by 4.36% 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)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.
  • Based on estimates for the next years, HPQ will show a small growth in Revenue. The Revenue will grow by 1.30% on average per year.
EPS Next Y-6.8%
EPS Next 2Y-1.98%
EPS Next 3Y2.42%
EPS Next 5Y2.11%
Revenue Next Year2.33%
Revenue Next 2Y1.35%
Revenue Next 3Y1.15%
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.
HPQ Yearly Revenue VS EstimatesHPQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
HPQ Yearly EPS VS EstimatesHPQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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8

4. HPQ Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 5.94 indicates a rather cheap valuation of HPQ.
  • 100.00% of the companies in the same industry are more expensive than HPQ, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, HPQ is valued rather cheaply.
  • The Price/Forward Earnings ratio is 6.32, which indicates a rather cheap valuation of HPQ.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 91.89% of the companies listed in the same industry.
  • HPQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.94
Fwd PE 6.32
HPQ Price Earnings VS Forward Price EarningsHPQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 97.30% of the companies listed in the same industry.
  • 89.19% of the companies in the same industry are more expensive than HPQ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.04
EV/EBITDA 5.13
HPQ Per share dataHPQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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 2Y-1.98%
EPS Next 3Y2.42%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. HPQ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.53%, HPQ is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.75, HPQ pays a better dividend. On top of this HPQ pays more dividend than 97.30% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, HPQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.53%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.14%
Div Incr Years15
Div Non Decr Years34
HPQ Yearly Dividends per shareHPQ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HPQ pays out 43.52% 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.
DP43.52%
EPS Next 2Y-1.98%
EPS Next 3Y2.42%
HPQ Yearly Income VS Free CF VS DividendHPQ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
HPQ Dividend Payout.HPQ Dividend Payout, showing the Payout Ratio.HPQ Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

HPQ Fundamentals: All Metrics, Ratios and Statistics

HP INC

NYSE:HPQ (4/13/2026, 3:21:07 PM)

19

+0.74 (+4.05%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-24
Earnings (Next)05-26
Inst Owners90.81%
Inst Owner Change0.06%
Ins Owners0.13%
Ins Owner Change7.46%
Market Cap17.38B
Revenue(TTM)56.23B
Net Income(TTM)2.51B
Analysts55.38
Price Target20.07 (5.63%)
Short Float %11.29%
Short Ratio5.06
Dividend
Industry RankSector Rank
Dividend Yield 6.53%
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.52%
Div Incr Years15
Div Non Decr Years34
Ex-Date03-11
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)-15.7%
PT rev (3m)-24.87%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-6.7%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-6.15%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 5.94
Fwd PE 6.32
P/S 0.31
P/FCF 6.04
P/OCF 4.69
P/B N/A
P/tB N/A
EV/EBITDA 5.13
EPS(TTM)3.2
EY16.84%
EPS(NY)3.01
Fwd EY15.83%
FCF(TTM)3.15
FCFY16.56%
OCF(TTM)4.05
OCFY21.33%
SpS61.48
BVpS-0.84
TBVpS-11.42
PEG (NY)N/A
PEG (5Y)0.89
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 1.59
F-Score5
WACC7.16%
ROIC/WACC3.65
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-6.8%
EPS Next 2Y-1.98%
EPS Next 3Y2.42%
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 Year2.33%
Revenue Next 2Y1.35%
Revenue Next 3Y1.15%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for HP INC?

ChartMill assigns a fundamental rating of 5 / 10 to HPQ.


Can you provide the valuation status for HP INC?

ChartMill assigns a valuation rating of 8 / 10 to HP INC (HPQ). This can be considered as Undervalued.


What is the profitability of HPQ stock?

HP INC (HPQ) has a profitability rating of 6 / 10.


What is the valuation of HP INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for HP INC (HPQ) is 5.94 and the Price/Book (PB) ratio is -22.68.


What is the earnings growth outlook for HP INC?

The Earnings per Share (EPS) of HP INC (HPQ) is expected to decline by -6.8% in the next year.