HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
23.93 EUR
-0.12 (-0.48%)
Taking everything into account, 7HP scores 5 out of 10 in our fundamental rating. 7HP was compared to 27 industry peers in the Technology Hardware, Storage & Peripherals industry. 7HP scores excellent on profitability, 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.
In the past year 7HP had a positive cash flow from operations.
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
7HP's Return On Assets of 6.62% is fine compared to the rest of the industry. 7HP outperforms 77.78% of its industry peers.
The Return On Invested Capital of 7HP (25.92%) is better than 92.59% 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 17.34%.
The 3 year average ROIC (31.68%) for 7HP is well above the current ROIC(25.92%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | N/A | ||
| ROIC | 25.92% |
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
7HP has a better Profit Margin (4.83%) than 74.07% of its industry peers.
In the last couple of years the Profit Margin of 7HP has remained more or less at the same level.
The Operating Margin of 7HP (6.71%) is better than 77.78% of its industry peers.
7HP's Operating Margin has improved in the last couple of years.
7HP has a worse Gross Margin (20.89%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.71% | ||
| PM (TTM) | 4.83% | ||
| GM | 20.89% |
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.
Compared to 1 year ago, 7HP has less shares outstanding
Compared to 5 years ago, 7HP has less shares outstanding
Compared to 1 year ago, 7HP has an improved debt to assets ratio.
2.2 Solvency
7HP has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as 7HP would need 3.38 years to pay back of all of its debts.
7HP has a Debt to FCF ratio of 3.38. This is in the better half of the industry: 7HP outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.58
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 7HP may have some problems paying its short term obligations.
7HP's Current ratio of 0.74 is on the low side compared to the rest of the industry. 7HP is outperformed by 85.19% of its industry peers.
7HP has a Quick Ratio of 0.74. 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 0.44, 7HP is doing worse than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for 7HP have decreased by -6.85% 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, 7HP shows a small growth in Revenue. The Revenue has grown by 2.61% in the last year.
The Revenue has been decreasing by -1.84% on average over the past years.
EPS 1Y (TTM)-6.85%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-9.64%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.05%
3.2 Future
The Earnings Per Share is expected to grow by 2.13% on average over the next years.
Based on estimates for the next years, 7HP will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-7.21%
EPS Next 2Y0.18%
EPS Next 3Y1.91%
EPS Next 5Y2.13%
Revenue Next Year2.98%
Revenue Next 2Y2.34%
Revenue Next 3Y2.14%
Revenue Next 5Y1.32%
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
7HP is valuated reasonably with a Price/Earnings ratio of 8.90.
92.59% of the companies in the same industry are more expensive than 7HP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 7HP to the average of the S&P500 Index (27.08), we can say 7HP is valued rather cheaply.
7HP is valuated reasonably with a Price/Forward Earnings ratio of 8.19.
Based on the Price/Forward Earnings ratio, 7HP is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 7HP indicates a somewhat cheap valuation: 7HP is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.16 | ||
| EV/EBITDA | 7.14 |
4.3 Compensation for Growth
7HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y0.18%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 2.15, 7HP pays a better dividend. On top of this 7HP pays more dividend than 96.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
40.95% of the earnings are spent on dividend by 7HP. 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.
DP40.95%
EPS Next 2Y0.18%
EPS Next 3Y1.91%
FRA:7HP (10/27/2025, 7:00:00 PM)
23.93
-0.12 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.79%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap22.37B
Revenue(TTM)54.71B
Net Income(TTM)2.64B
Analysts66.36
Price Target24.24 (1.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.96
Dividend Growth(5Y)11.65%
DP40.95%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.84%
Min EPS beat(2)-12.57%
Max EPS beat(2)-1.12%
EPS beat(4)0
Avg EPS beat(4)-4.04%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.96%
EPS beat(8)1
Avg EPS beat(8)-2.81%
EPS beat(12)3
Avg EPS beat(12)-1.67%
EPS beat(16)6
Avg EPS beat(16)-0.46%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)0.72%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.72%
Revenue beat(8)4
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-1.07%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)0.52%
PT rev (3m)0.69%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.48 | ||
| P/FCF | 9.16 | ||
| P/OCF | 7.04 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.14 |
EPS(TTM)2.69
EY11.24%
EPS(NY)2.92
Fwd EY12.21%
FCF(TTM)2.61
FCFY10.92%
OCF(TTM)3.4
OCFY14.2%
SpS50.29
BVpS-0.83
TBVpS-8.84
PEG (NY)N/A
PEG (5Y)1.02
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | N/A | ||
| ROCE | 30.63% | ||
| ROIC | 25.92% | ||
| ROICexc | 34.09% | ||
| ROICexgc | 773.03% | ||
| OM | 6.71% | ||
| PM (TTM) | 4.83% | ||
| GM | 20.89% | ||
| FCFM | 5.2% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 93.12% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.56% | ||
| Profit Quality | 107.69% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | N/A |
F-Score5
WACC7.23%
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)-6.85%
EPS 3Y-2.52%
EPS 5Y8.74%
EPS Q2Q%-9.64%
EPS Next Y-7.21%
EPS Next 2Y0.18%
EPS Next 3Y1.91%
EPS Next 5Y2.13%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.05%
Revenue Next Year2.98%
Revenue Next 2Y2.34%
Revenue Next 3Y2.14%
Revenue Next 5Y1.32%
EBIT growth 1Y-13.36%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year8.9%
EBIT Next 3Y2.92%
EBIT Next 5Y0.31%
FCF growth 1Y-1.86%
FCF growth 3Y-18.48%
FCF growth 5Y-4.54%
OCF growth 1Y5.6%
OCF growth 3Y-16.37%
OCF growth 5Y-4.23%
HP INC / 7HP.DE FAQ
What is the fundamental rating for 7HP stock?
ChartMill assigns a fundamental rating of 5 / 10 to 7HP.DE.
What is the valuation status of HP INC (7HP.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to HP INC (7HP.DE). This can be considered as Undervalued.
How profitable is HP INC (7HP.DE) stock?
HP INC (7HP.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 7HP stock?
The Price/Earnings (PE) ratio for HP INC (7HP.DE) is 8.9 and the Price/Book (PB) ratio is -28.9.
What is the expected EPS growth for HP INC (7HP.DE) stock?
The Earnings per Share (EPS) of HP INC (7HP.DE) is expected to decline by -7.21% in the next year.