HP INC (1HPQ.MI) Stock Fundamental Analysis
BIT:1HPQ - Euronext Milan - US40434L1052 - Common Stock - Currency: EUR
1HPQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPQ scores excellent on profitability, but there are concerns on its financial health. 1HPQ is cheap, but on the other hand it scores bad on growth. Finally 1HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1HPQ had positive earnings in the past year.
1HPQ had a positive operating cash flow in the past year.
In the past 5 years 1HPQ has always been profitable.
1HPQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.49%, 1HPQ is doing good in the industry, outperforming 72.41% of the companies in the same industry.
The Return On Invested Capital of 1HPQ (26.59%) is better than 89.66% of its industry peers.
1HPQ had an Average Return On Invested Capital over the past 3 years of 31.68%. This is significantly above the industry average of 16.41%.
The 3 year average ROIC (31.68%) for 1HPQ is well above the current ROIC(26.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | N/A | ||
| ROIC | 26.59% |
ROA(3y)7.97%
ROA(5y)9.81%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.51%
1.3 Margins
Looking at the Profit Margin, with a value of 4.64%, 1HPQ is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Profit Margin of 1HPQ has remained more or less at the same level.
1HPQ's Operating Margin of 7.08% is fine compared to the rest of the industry. 1HPQ outperforms 72.41% of its industry peers.
1HPQ's Operating Margin has improved in the last couple of years.
The Gross Margin of 1HPQ (21.15%) is worse than 68.97% of its industry peers.
In the last couple of years the Gross Margin of 1HPQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | 4.64% | ||
| GM | 21.15% |
OM growth 3Y-4.29%
OM growth 5Y1.94%
PM growth 3Y-20.49%
PM growth 5Y-0.69%
GM growth 3Y1.46%
GM growth 5Y3.02%
2. Health
2.1 Basic Checks
1HPQ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1HPQ has less shares outstanding
The number of shares outstanding for 1HPQ has been reduced compared to 5 years ago.
Compared to 1 year ago, 1HPQ has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1HPQ is 4.04, which is a neutral value as it means it would take 1HPQ, 4.04 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.04, 1HPQ is doing good in the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | N/A |
ROIC/WACC3.58
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.73 indicates that 1HPQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, 1HPQ is doing worse than 86.21% of the companies in the same industry.
1HPQ has a Quick Ratio of 0.73. This is a bad value and indicates that 1HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.42, 1HPQ is doing worse than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
1HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.31%.
1HPQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
Looking at the last year, 1HPQ shows a small growth in Revenue. The Revenue has grown by 2.45% in the last year.
1HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
EPS 1Y (TTM)-5.31%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-13.41%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
3.2 Future
Based on estimates for the next years, 1HPQ will show a small growth in Earnings Per Share. The EPS will grow by 2.51% on average per year.
1HPQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.01% yearly.
EPS Next Y-7.19%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
EPS Next 5Y2.51%
Revenue Next Year2.17%
Revenue Next 2Y1.86%
Revenue Next 3Y1.91%
Revenue Next 5Y1.01%
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
The Price/Earnings ratio is 7.99, which indicates a rather cheap valuation of 1HPQ.
93.10% of the companies in the same industry are more expensive than 1HPQ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.99, 1HPQ is valued rather cheaply.
1HPQ is valuated cheaply with a Price/Forward Earnings ratio of 7.55.
Based on the Price/Forward Earnings ratio, 1HPQ is valued cheaper than 86.21% of the companies in the same industry.
1HPQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
75.86% of the companies in the same industry are more expensive than 1HPQ, based on the Enterprise Value to EBITDA ratio.
82.76% of the companies in the same industry are more expensive than 1HPQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
The decent profitability rating of 1HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y0.15%
EPS Next 3Y2.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, 1HPQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, 1HPQ pays a better dividend. On top of this 1HPQ pays more dividend than 96.55% of the companies listed in the same industry.
1HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
The dividend of 1HPQ is nicely growing with an annual growth rate of 11.65%!
Dividend Growth(5Y)11.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
42.79% of the earnings are spent on dividend by 1HPQ. This is a bit on the high side, but may be sustainable.
The dividend of 1HPQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.79%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
BIT:1HPQ (7/4/2025, 7:00:00 PM)
21.97
-3.75 (-14.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.45%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap20.64B
Analysts66.67
Price Target24.05 (9.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend0.95
Dividend Growth(5Y)11.65%
DP42.79%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.03%
Min EPS beat(2)-12.57%
Max EPS beat(2)-1.5%
EPS beat(4)0
Avg EPS beat(4)-4.86%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.96%
EPS beat(8)1
Avg EPS beat(8)-2.77%
EPS beat(12)3
Avg EPS beat(12)-1.65%
EPS beat(16)7
Avg EPS beat(16)-0.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)-19.54%
PT rev (3m)-30.8%
EPS NQ rev (1m)-15.99%
EPS NQ rev (3m)-20.47%
EPS NY rev (1m)-10.07%
EPS NY rev (3m)-13.01%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.44 | ||
| P/FCF | 9.07 | ||
| P/OCF | 6.97 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.89 |
EPS(TTM)2.75
EY12.52%
EPS(NY)2.91
Fwd EY13.25%
FCF(TTM)2.42
FCFY11.03%
OCF(TTM)3.15
OCFY14.35%
SpS49.48
BVpS-1.16
TBVpS-9.1
PEG (NY)N/A
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | N/A | ||
| ROCE | 31.41% | ||
| ROIC | 26.59% | ||
| ROICexc | 34.21% | ||
| ROICexgc | 406.86% | ||
| OM | 7.08% | ||
| PM (TTM) | 4.64% | ||
| GM | 21.15% | ||
| FCFM | 4.9% |
ROA(3y)7.97%
ROA(5y)9.81%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.51%
ROICexc(3y)43.22%
ROICexc(5y)62.78%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.59%
ROCE(5y)43.81%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.53%
ROICexc growth 5Y-14.33%
OM growth 3Y-4.29%
OM growth 5Y1.94%
PM growth 3Y-20.49%
PM growth 5Y-0.69%
GM growth 3Y1.46%
GM growth 5Y3.02%
F-Score5
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 97.8% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.16% | ||
| Profit Quality | 105.64% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | N/A |
F-Score5
WACC7.43%
ROIC/WACC3.58
Cap/Depr(3y)81.46%
Cap/Depr(5y)78.41%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.09%
Profit Quality(3y)107.26%
Profit Quality(5y)108.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.31%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-13.41%
EPS Next Y-7.19%
EPS Next 2Y0.15%
EPS Next 3Y2.12%
EPS Next 5Y2.51%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
Revenue Next Year2.17%
Revenue Next 2Y1.86%
Revenue Next 3Y1.91%
Revenue Next 5Y1.01%
EBIT growth 1Y-10.66%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year13.8%
EBIT Next 3Y4.08%
EBIT Next 5Y0.31%
FCF growth 1Y17.81%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y18.54%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%