HP INC (1HPQ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HPQ - US40434L1052 - Common Stock
21.13 EUR
+1.58 (+8.09%)
Taking everything into account, 1HPQ scores 5 out of 10 in our fundamental rating. 1HPQ was compared to 30 industry peers in the Technology Hardware, Storage & Peripherals industry. 1HPQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1HPQ is valued quite cheap, but it does not seem to be growing. Finally 1HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1HPQ was profitable.
In the past year 1HPQ had a positive cash flow from operations.
1HPQ had positive earnings in each of the past 5 years.
Each year in the past 5 years 1HPQ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.05%, 1HPQ is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
1HPQ's Return On Invested Capital of 25.99% is amongst the best of the industry. 1HPQ outperforms 91.18% of its industry peers.
1HPQ had an Average Return On Invested Capital over the past 3 years of 29.86%. This is significantly above the industry average of 15.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 25.99% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.86%
ROIC(5y)35.59%
1.3 Margins
Looking at the Profit Margin, with a value of 4.57%, 1HPQ is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
1HPQ's Profit Margin has declined in the last couple of years.
The Operating Margin of 1HPQ (6.55%) is better than 70.59% of its industry peers.
In the last couple of years the Operating Margin of 1HPQ has remained more or less at the same level.
Looking at the Gross Margin, with a value of 20.60%, 1HPQ is doing worse than 70.59% of the companies in the same industry.
1HPQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% |
OM growth 3Y-6.95%
OM growth 5Y-1.18%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1HPQ is creating value.
1HPQ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1HPQ has less shares outstanding
Compared to 1 year ago, 1HPQ has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1HPQ is 3.45, which is a good value as it means it would take 1HPQ, 3.45 years of fcf income to pay off all of its debts.
1HPQ has a Debt to FCF ratio of 3.45. This is in the better half of the industry: 1HPQ outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC3.53
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.77 indicates that 1HPQ may have some problems paying its short term obligations.
1HPQ's Current ratio of 0.77 is on the low side compared to the rest of the industry. 1HPQ is outperformed by 82.35% of its industry peers.
1HPQ has a Quick Ratio of 0.77. This is a bad value and indicates that 1HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
1HPQ has a Quick ratio of 0.48. This is amonst the worse of the industry: 1HPQ underperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for 1HPQ have decreased by -7.67% in the last year.
Measured over the past 5 years, 1HPQ shows a small growth in Earnings Per Share. The EPS has been growing by 6.64% on average per year.
The Revenue has been growing slightly by 3.24% in the past year.
1HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
3.2 Future
The Earnings Per Share is expected to grow by 4.74% on average over the next years.
Based on estimates for the next years, 1HPQ will show a small growth in Revenue. The Revenue will grow by 1.26% on average per year.
EPS Next Y-1%
EPS Next 2Y1.55%
EPS Next 3Y4%
EPS Next 5Y4.74%
Revenue Next Year1.96%
Revenue Next 2Y1.67%
Revenue Next 3Y1.61%
Revenue Next 5Y1.26%
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 7.86, the valuation of 1HPQ can be described as very cheap.
Based on the Price/Earnings ratio, 1HPQ is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1HPQ to the average of the S&P500 Index (26.84), we can say 1HPQ is valued rather cheaply.
1HPQ is valuated cheaply with a Price/Forward Earnings ratio of 7.94.
85.29% of the companies in the same industry are more expensive than 1HPQ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.40. 1HPQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HPQ is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
88.24% 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 | 8.21 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
1HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y1.55%
EPS Next 3Y4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.47%, 1HPQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.97, 1HPQ pays a better dividend. On top of this 1HPQ pays more dividend than 97.06% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of 1HPQ is nicely growing with an annual growth rate of 9.97%!
Dividend Growth(5Y)9.97%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
43.02% of the earnings are spent on dividend by 1HPQ. 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.
DP43.02%
EPS Next 2Y1.55%
EPS Next 3Y4%
BIT:1HPQ (11/24/2025, 7:00:00 PM)
21.13
+1.58 (+8.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners84%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap19.75B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts56
Price Target22.36 (5.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend1
Dividend Growth(5Y)9.97%
DP43.02%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.64%
Min EPS beat(2)-1.12%
Max EPS beat(2)-0.16%
EPS beat(4)0
Avg EPS beat(4)-3.83%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.16%
EPS beat(8)1
Avg EPS beat(8)-2.72%
EPS beat(12)2
Avg EPS beat(12)-1.72%
EPS beat(16)5
Avg EPS beat(16)-0.81%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.72%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)0.72%
Revenue beat(8)5
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-1.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)-7.65%
PT rev (3m)-5.99%
EPS NQ rev (1m)-2.82%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)-8.83%
EPS NY rev (3m)-8.9%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.42 | ||
| P/FCF | 8.21 | ||
| P/OCF | 6.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.38 |
EPS(TTM)2.69
EY12.73%
EPS(NY)2.66
Fwd EY12.59%
FCF(TTM)2.57
FCFY12.17%
OCF(TTM)3.4
OCFY16.07%
SpS50.8
BVpS-0.32
TBVpS-8.32
PEG (NY)N/A
PEG (5Y)1.18
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 25.99% | ||
| ROICexc | 36.92% | ||
| ROICexgc | 3251.08% | ||
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% | ||
| FCFM | 5.06% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.86%
ROIC(5y)35.59%
ROICexc(3y)41.51%
ROICexc(5y)52.92%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.38%
ROCE(5y)40.28%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.52%
ROICexc growth 5Y-18.88%
OM growth 3Y-6.95%
OM growth 5Y-1.18%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
F-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 97.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.43% | ||
| Profit Quality | 110.72% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | N/A |
F-Score5
WACC7.37%
ROIC/WACC3.53
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)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
EPS Next Y-1%
EPS Next 2Y1.55%
EPS Next 3Y4%
EPS Next 5Y4.74%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
Revenue Next Year1.96%
Revenue Next 2Y1.67%
Revenue Next 3Y1.61%
Revenue Next 5Y1.26%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year13.75%
EBIT Next 3Y5.38%
EBIT Next 5Y2.76%
FCF growth 1Y-11.31%
FCF growth 3Y-8.64%
FCF growth 5Y-5.6%
OCF growth 1Y-1.39%
OCF growth 3Y-6.08%
OCF growth 5Y-3.05%
HP INC / 1HPQ.MI FAQ
Can you provide the ChartMill fundamental rating for HP INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1HPQ.MI.
What is the valuation status for 1HPQ stock?
ChartMill assigns a valuation rating of 9 / 10 to HP INC (1HPQ.MI). This can be considered as Undervalued.
How profitable is HP INC (1HPQ.MI) stock?
HP INC (1HPQ.MI) has a profitability rating of 6 / 10.
What is the expected EPS growth for HP INC (1HPQ.MI) stock?
The Earnings per Share (EPS) of HP INC (1HPQ.MI) is expected to decline by -1% in the next year.
Is the dividend of HP INC sustainable?
The dividend rating of HP INC (1HPQ.MI) is 7 / 10 and the dividend payout ratio is 43.02%.