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 28 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1HPQ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1HPQ is valued quite cheap, but it does not seem to be growing. 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.
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
1HPQ's Return On Assets of 6.98% is fine compared to the rest of the industry. 1HPQ outperforms 80.00% of its industry peers.
1HPQ has a Return On Invested Capital of 30.02%. This is amongst the best in the industry. 1HPQ outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HPQ 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.
In the last couple of years the Profit Margin of 1HPQ has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.61%, 1HPQ is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
1HPQ's Operating Margin has improved in the last couple of years.
1HPQ's Gross Margin of 21.85% is on the low side compared to the rest of the industry. 1HPQ is outperformed by 73.33% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1HPQ 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.
1HPQ has a better debt/assets ratio than last year.
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 of 1.81. This is comparable to the rest of the industry: 1HPQ outperforms 56.67% of its industry peers.
1HPQ has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as 1HPQ would need 2.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.97, 1HPQ is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| 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.
1HPQ has a worse Quick ratio (0.42) than 93.33% of its industry peers.
| 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.
Looking at the last year, 1HPQ shows a small growth in Revenue. The Revenue has grown by 1.51% in the last year.
The Revenue has been decreasing by -1.84% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.32% 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 1.21% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 8.75 indicates a reasonable valuation of 1HPQ.
Based on the Price/Earnings ratio, 1HPQ is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.35. 1HPQ is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.00 indicates a rather cheap valuation of 1HPQ.
1HPQ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1HPQ is cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.20. 1HPQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8 |
4.2 Price Multiples
1HPQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1HPQ is cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1HPQ is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
1HPQ has a very decent profitability rating, which 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
1HPQ has a Yearly Dividend Yield of 4.05%, which is a nice return.
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.
Compared to an average S&P500 Dividend Yield of 2.40, 1HPQ pays a better dividend.
| 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
39.48% of the earnings are spent on dividend by 1HPQ. This is a low number and 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%