HP INC (1HPQ.MI) Stock Fundamental Analysis
BIT:1HPQ - Euronext Milan - US40434L1052 - Common Stock - Currency: EUR
Taking everything into account, 1HPQ scores 5 out of 10 in our fundamental rating. 1HPQ was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPQ has a great profitability rating, there are quite some 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
In the past year 1HPQ was profitable.
1HPQ had a positive operating cash flow in the past year.
Each year in the past 5 years 1HPQ has been profitable.
Each year in the past 5 years 1HPQ had a positive operating cash flow.
1.2 Ratios
1HPQ has a Return On Assets of 6.49%. This is in the better half of the industry: 1HPQ outperforms 72.41% of its industry peers.
1HPQ has a better Return On Invested Capital (26.59%) than 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1HPQ is significantly above the industry average of 17.48%.
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.
The Operating Margin of 1HPQ (7.08%) is better than 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.
1HPQ's Gross Margin has improved in the last couple of years.
| 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.
1HPQ has less shares outstanding than it did 1 year ago.
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 a debt to FCF ratio of 4.04. This is a neutral value as 1HPQ would need 4.04 years to pay back of all of its debts.
1HPQ has a Debt to FCF ratio of 4.04. This is in the better half of the industry: 1HPQ outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | N/A |
ROIC/WACC3.58
WACC7.43%
2.3 Liquidity
1HPQ has a Current 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.
The Current ratio of 1HPQ (0.73) is worse than 86.21% of its industry peers.
A Quick Ratio of 0.42 indicates that 1HPQ may have some problems paying its short term obligations.
1HPQ has a Quick ratio of 0.42. This is amonst the worse of the industry: 1HPQ underperforms 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for 1HPQ have decreased by -5.31% in the last year.
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.
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)-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
The Earnings Per Share is expected to grow by 2.51% on average over the next years.
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
With a Price/Earnings ratio of 7.99, the valuation of 1HPQ can be described as very cheap.
Based on the Price/Earnings ratio, 1HPQ is valued cheaper than 93.10% of the companies in the same industry.
1HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of 1HPQ can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HPQ indicates a rather cheap valuation: 1HPQ is cheaper than 86.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. 1HPQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
1HPQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1HPQ is cheaper than 75.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1HPQ is valued cheaper than 82.76% of the companies in the same industry.
| 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.
1HPQ's Dividend Yield is rather good when compared to the industry average which is at 2.17. 1HPQ pays more dividend than 96.55% of the companies in the same industry.
1HPQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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 42.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
1HPQ's earnings are growing slower than its dividend. 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%