HP INC (1HPQ.MI) Stock Fundamental Analysis
BIT:1HPQ - Euronext Milan - US40434L1052 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1HPQ. 1HPQ was compared to 28 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPQ scores excellent on profitability, but there are some minor concerns on its financial health. 1HPQ has a bad growth rate and is valued cheaply. 1HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1HPQ had positive earnings in the past year.
In the past year 1HPQ had a positive cash flow from operations.
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
1HPQ has a better Return On Assets (6.98%) than 80.00% of its industry peers.
1HPQ's Return On Invested Capital of 30.02% is amongst the best of the industry. 1HPQ outperforms 90.00% 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 16.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | N/A | ||
| ROIC | 30.02% |
ROA(3y)7.97%
ROA(5y)9.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.41%
1.3 Margins
Looking at the Profit Margin, with a value of 5.04%, 1HPQ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1HPQ's Profit Margin has been stable in the last couple of years.
1HPQ has a better Operating Margin (7.61%) than 73.33% of its industry peers.
1HPQ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.85%, 1HPQ is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of 1HPQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.61% | ||
| PM (TTM) | 5.04% | ||
| GM | 21.85% |
OM growth 3Y-3.92%
OM growth 5Y1.94%
PM growth 3Y-20.32%
PM growth 5Y-0.69%
GM growth 3Y1.45%
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.
The debt/assets ratio for 1HPQ has been reduced compared to a year ago.
2.2 Solvency
1HPQ has an Altman-Z score of 1.81. This is a bad value and indicates that 1HPQ is not financially healthy and even has some risk of bankruptcy.
1HPQ has a Altman-Z score (1.81) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1HPQ is 2.97, which is a good value as it means it would take 1HPQ, 2.97 years of fcf income to pay off all of its debts.
1HPQ has a Debt to FCF ratio of 2.97. This is in the better half of the industry: 1HPQ outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 1.81 |
ROIC/WACC3.85
WACC7.79%
2.3 Liquidity
1HPQ has a Current Ratio of 0.72. 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 Current ratio, with a value of 0.72, 1HPQ is doing worse than 90.00% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that 1HPQ may have some problems paying its short term obligations.
With a Quick ratio value of 0.42, 1HPQ is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for 1HPQ have decreased by -1.48% in the last year.
The Earnings Per Share has been growing by 8.74% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.51% in the past year.
Measured over the past years, 1HPQ shows a decrease in Revenue. The Revenue has been decreasing by -1.84% on average per year.
EPS 1Y (TTM)-1.48%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-8.64%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%2.42%
3.2 Future
1HPQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.32% yearly.
1HPQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% yearly.
EPS Next Y3.21%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
EPS Next 5Y5.32%
Revenue Next Year2.43%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.75, the valuation of 1HPQ can be described as very reasonable.
Based on the Price/Earnings ratio, 1HPQ is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, 1HPQ is valued rather cheaply.
1HPQ is valuated cheaply with a Price/Forward Earnings ratio of 8.00.
Based on the Price/Forward Earnings ratio, 1HPQ is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1HPQ to the average of the S&P500 Index (22.10), we can say 1HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HPQ indicates a somewhat cheap valuation: 1HPQ is cheaper than 70.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1HPQ does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1HPQ may justify a higher PE ratio.
PEG (NY)2.73
PEG (5Y)1
EPS Next 2Y3.55%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, 1HPQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.25, 1HPQ pays a better dividend. On top of this 1HPQ pays more dividend than 96.67% 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 | 4.05% |
5.2 History
On average, the dividend of 1HPQ grows each year by 11.65%, which is quite nice.
Dividend Growth(5Y)11.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1HPQ pays out 39.48% of its income as dividend. This is a sustainable payout ratio.
1HPQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
BIT:1HPQ (5/14/2025, 7:00:00 PM)
25.72
+4.82 (+23.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.73%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap24.25B
Analysts67
Price Target29.89 (16.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend0.99
Dividend Growth(5Y)11.65%
DP39.48%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.23%
Min EPS beat(2)-1.5%
Max EPS beat(2)-0.96%
EPS beat(4)1
Avg EPS beat(4)-1.72%
Min EPS beat(4)-4.43%
Max EPS beat(4)0.02%
EPS beat(8)2
Avg EPS beat(8)-0.68%
EPS beat(12)4
Avg EPS beat(12)-0.47%
EPS beat(16)8
Avg EPS beat(16)0.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.04%
Revenue beat(4)3
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.18%
Revenue beat(12)4
Avg Revenue beat(12)-1.69%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)-12.69%
PT rev (3m)-14%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-3.27%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8 | ||
| P/S | 0.51 | ||
| P/FCF | 8.39 | ||
| P/OCF | 6.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)2.94
EY11.43%
EPS(NY)3.22
Fwd EY12.51%
FCF(TTM)3.07
FCFY11.92%
OCF(TTM)3.76
OCFY14.61%
SpS50.57
BVpS-1.01
TBVpS-10.25
PEG (NY)2.73
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | N/A | ||
| ROCE | 35.65% | ||
| ROIC | 30.02% | ||
| ROICexc | 40.06% | ||
| ROICexgc | N/A | ||
| OM | 7.61% | ||
| PM (TTM) | 5.04% | ||
| GM | 21.85% | ||
| FCFM | 6.06% |
ROA(3y)7.97%
ROA(5y)9.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.68%
ROIC(5y)36.41%
ROICexc(3y)43.22%
ROICexc(5y)62.59%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.59%
ROCE(5y)43.67%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.23%
ROICexc growth 5Y-14.33%
OM growth 3Y-3.92%
OM growth 5Y1.94%
PM growth 3Y-20.32%
PM growth 5Y-0.69%
GM growth 3Y1.45%
GM growth 5Y3.02%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 89.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.34% | ||
| Profit Quality | 120.16% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.81 |
F-Score7
WACC7.79%
ROIC/WACC3.85
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)108.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.48%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-8.64%
EPS Next Y3.21%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
EPS Next 5Y5.32%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y-5.51%
Revenue growth 5Y-1.84%
Sales Q2Q%2.42%
Revenue Next Year2.43%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.21%
EBIT growth 1Y-3.76%
EBIT growth 3Y-9.21%
EBIT growth 5Y0.07%
EBIT Next Year13.8%
EBIT Next 3Y4.08%
EBIT Next 5Y1.68%
FCF growth 1Y57.02%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y43.44%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%