HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - Deutsche Boerse Ag - US40434L1052 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP has an excellent profitability rating, but there are concerns on its financial health. 7HP is cheap, but on the other hand it scores bad on growth. 7HP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
7HP had positive earnings in the past year.
7HP had a positive operating cash flow in the past year.
7HP had positive earnings in each of the past 5 years.
In the past 5 years 7HP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.49%, 7HP is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
The Return On Invested Capital of 7HP (26.59%) is better than 93.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 7HP is significantly above the industry average of 17.48%.
The 3 year average ROIC (31.68%) for 7HP 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
The Profit Margin of 7HP (4.64%) is better than 62.07% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP's Operating Margin of 7.08% is fine compared to the rest of the industry. 7HP outperforms 72.41% of its industry peers.
In the last couple of years the Operating Margin of 7HP has grown nicely.
The Gross Margin of 7HP (21.15%) is worse than 68.97% of its industry peers.
7HP'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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 7HP is creating value.
The number of shares outstanding for 7HP has been reduced compared to 1 year ago.
The number of shares outstanding for 7HP has been reduced compared to 5 years ago.
The debt/assets ratio for 7HP has been reduced compared to a year ago.
2.2 Solvency
7HP has a debt to FCF ratio of 4.04. This is a neutral value as 7HP would need 4.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.04, 7HP is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | N/A |
ROIC/WACC3.6
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.73 indicates that 7HP may have some problems paying its short term obligations.
7HP has a worse Current ratio (0.73) than 86.21% of its industry peers.
7HP has a Quick Ratio of 0.73. This is a bad value and indicates that 7HP 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, 7HP 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
The earnings per share for 7HP have decreased by -5.31% in the last year.
Measured over the past years, 7HP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.74% on average per year.
The Revenue has been growing slightly by 2.45% in the past year.
The Revenue has been decreasing by -1.84% on average over the past years.
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, 7HP will show a small growth in Earnings Per Share. The EPS will grow by 2.51% on average per year.
The Revenue is expected to grow by 1.01% on average over the next years.
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
A Price/Earnings ratio of 7.70 indicates a rather cheap valuation of 7HP.
Compared to the rest of the industry, the Price/Earnings ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 96.55% of the companies listed in the same industry.
7HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.51.
Based on the Price/Forward Earnings ratio of 7.28, the valuation of 7HP can be described as very cheap.
Based on the Price/Forward Earnings ratio, 7HP is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.58. 7HP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
7HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 7HP is cheaper than 79.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.75 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y0.15%
EPS Next 3Y2.12%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.50%, which is a nice return.
Compared to an average industry Dividend Yield of 2.17, 7HP pays a better dividend. On top of this 7HP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
On average, the dividend of 7HP grows each year by 11.65%, which is quite nice.
Dividend Growth(5Y)11.65%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
7HP pays out 42.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
7HP'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%
FRA:7HP (7/14/2025, 7:00:00 PM)
21.18
-0.62 (-2.82%)
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 Cap19.89B
Analysts66.67
Price Target24.05 (13.55%)
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 Years6
Div Non Decr Years6
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)-19.45%
PT rev (3m)-29.76%
EPS NQ rev (1m)-15.99%
EPS NQ rev (3m)-15.99%
EPS NY rev (1m)-10.07%
EPS NY rev (3m)-12.81%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.28 | ||
| P/S | 0.43 | ||
| P/FCF | 8.75 | ||
| P/OCF | 6.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.7 |
EPS(TTM)2.75
EY12.98%
EPS(NY)2.91
Fwd EY13.73%
FCF(TTM)2.42
FCFY11.43%
OCF(TTM)3.15
OCFY14.87%
SpS49.45
BVpS-1.16
TBVpS-9.1
PEG (NY)N/A
PEG (5Y)0.88
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
WACC7.39%
ROIC/WACC3.6
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%