HP INC (HPQ) Fundamental Analysis & Valuation

NYSE:HPQ • US40434L1052

Current stock price

18.53 USD
+0.26 (+1.42%)
At close:
18.58 USD
+0.05 (+0.27%)
After Hours:

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

7

1. HPQ Profitability Analysis

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.
  • 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

  • The Return On Assets of HPQ (6.04%) is better than 86.49% of its industry peers.
  • HPQ's Return On Invested Capital of 26.16% is amongst the best of the industry. HPQ outperforms 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 15.72%.
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

  • HPQ has a better Profit Margin (4.46%) than 78.38% of its industry peers.
  • 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 75.68% of the companies in the same industry.
  • HPQ's Operating Margin has been stable in the last couple of years.
  • HPQ's Gross Margin of 20.25% is in line compared to the rest of the industry. HPQ outperforms 40.54% of its industry peers.
  • In the last couple of years the Gross Margin of HPQ has grown nicely.
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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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.
  • 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.
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 48.65% of the companies in the same industry.
  • 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.
  • HPQ has a better Debt to FCF ratio (3.37) than 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Altman-Z 1.59
ROIC/WACC3.62
WACC7.22%
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

  • 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.
  • Looking at the Current ratio, with a value of 0.76, HPQ is doing worse than 81.08% 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.
  • HPQ's Quick ratio of 0.46 is on the low side compared to the rest of the industry. HPQ is outperformed by 81.08% 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

  • The earnings per share for HPQ have decreased by -3.61% in the last year.
  • HPQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.64% yearly.
  • 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

  • The Earnings Per Share is expected to grow by 2.11% on average over the next years.
  • HPQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.30% yearly.
EPS Next Y-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 5.79 indicates a rather cheap valuation of HPQ.
  • Based on the Price/Earnings ratio, HPQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • HPQ is valuated cheaply when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • HPQ is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
  • Based on the Price/Forward Earnings ratio, HPQ is valued cheaper than 91.89% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of HPQ to the average of the S&P500 Index (22.70), we can say HPQ is valued rather cheaply.
Industry RankSector Rank
PE 5.79
Fwd PE 6.1
HPQ Price Earnings VS Forward Price EarningsHPQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 89.19% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.89
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

  • The decent profitability rating of HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y-1.51%
EPS Next 3Y2.47%

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

8

5. HPQ Dividend Analysis

5.1 Amount

  • HPQ has a Yearly Dividend Yield of 6.49%, which is a nice return.
  • The stock price of HPQ dropped by -20.34% 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.
  • Compared to an average industry Dividend Yield of 0.63, HPQ pays a better dividend. On top of this HPQ pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, HPQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.49%

5.2 History

  • The dividend of HPQ is nicely growing with an annual growth rate of 10.14%!
  • 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
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.
  • The dividend of HPQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
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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HPQ Fundamentals: All Metrics, Ratios and Statistics

HP INC

NYSE:HPQ (3/23/2026, 8:04:00 PM)

After market: 18.58 +0.05 (+0.27%)

18.53

+0.26 (+1.42%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-24
Earnings (Next)05-26
Inst Owners90.28%
Inst Owner Change3.79%
Ins Owners0.12%
Ins Owner Change7.19%
Market Cap16.95B
Revenue(TTM)56.23B
Net Income(TTM)2.51B
Analysts55.38
Price Target23.8 (28.44%)
Short Float %11.29%
Short Ratio5.28
Dividend
Industry RankSector Rank
Dividend Yield 6.49%
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.52%
Div Incr Years14
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)-6.25%
PT rev (3m)-10.87%
EPS NQ rev (1m)-5.96%
EPS NQ rev (3m)-6.7%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-5.44%
Revenue NQ rev (1m)5.14%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 5.79
Fwd PE 6.1
P/S 0.3
P/FCF 5.89
P/OCF 4.57
P/B N/A
P/tB N/A
EV/EBITDA 5.13
EPS(TTM)3.2
EY17.27%
EPS(NY)3.04
Fwd EY16.39%
FCF(TTM)3.15
FCFY16.98%
OCF(TTM)4.05
OCFY21.87%
SpS61.48
BVpS-0.84
TBVpS-11.42
PEG (NY)N/A
PEG (5Y)0.87
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
WACC7.22%
ROIC/WACC3.62
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-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
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 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 -6.38% in the next year.