HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - US40434L1052 - Common Stock
23.29 EUR
-0.45 (-1.87%)
7HP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP belongs to the best of the industry regarding profitability, there are concerns on its financial health. 7HP has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 7HP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 7HP was profitable.
In the past year 7HP had a positive cash flow from operations.
In the past 5 years 7HP has always been profitable.
7HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
7HP has a Return On Assets of 6.49%. This is in the better half of the industry: 7HP outperforms 70.00% of its industry peers.
The Return On Invested Capital of 7HP (26.59%) is better than 86.67% of its industry peers.
7HP had an Average Return On Invested Capital over the past 3 years of 31.68%. This is significantly above the industry average of 16.91%.
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
7HP's Profit Margin of 4.64% is fine compared to the rest of the industry. 7HP outperforms 63.33% 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 73.33% of its industry peers.
7HP's Operating Margin has improved in the last couple of years.
7HP has a Gross Margin of 21.15%. This is in the lower half of the industry: 7HP underperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of 7HP has grown nicely.
| 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
7HP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
The Debt to FCF ratio of 7HP is 4.04, which is a neutral value as it means it would take 7HP, 4.04 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.04, 7HP is doing good in the industry, outperforming 63.33% 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
7HP has a Current 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.
With a Current ratio value of 0.73, 7HP is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.42 indicates that 7HP may have some problems paying its short term obligations.
7HP's Quick ratio of 0.42 is on the low side compared to the rest of the industry. 7HP is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
7HP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.31%.
7HP 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, 7HP shows a small growth in Revenue. The Revenue has grown by 2.45% in the last year.
7HP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
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.
7HP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.26% yearly.
EPS Next Y-6.49%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
EPS Next 5Y2.51%
Revenue Next Year2.31%
Revenue Next 2Y1.88%
Revenue Next 3Y1.83%
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.
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 8.47 indicates a reasonable valuation of 7HP.
90.00% of the companies in the same industry are more expensive than 7HP, based on the Price/Earnings ratio.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.98, the valuation of 7HP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 7HP indicates a somewhat cheap valuation: 7HP is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, 7HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 7.98 |
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 76.67% of the companies listed in the same industry.
7HP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 7HP is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 7.18 |
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)0.97
EPS Next 2Y0.17%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.36%, which is a nice return.
Compared to an average industry Dividend Yield of 2.31, 7HP pays a better dividend. On top of this 7HP pays more dividend than 96.67% of the companies listed in the same industry.
7HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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
42.79% of the earnings are spent on dividend by 7HP. This is a bit on the high side, but may be sustainable.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.79%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
FRA:7HP (8/26/2025, 7:00:00 PM)
23.29
-0.45 (-1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners82.52%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap21.88B
Analysts66.67
Price Target23.71 (1.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend0.96
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)-1.52%
PT rev (3m)-20.59%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-15.89%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-9.39%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 7.98 | ||
| P/S | 0.47 | ||
| P/FCF | 9.59 | ||
| P/OCF | 7.37 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.18 |
EPS(TTM)2.75
EY11.81%
EPS(NY)2.92
Fwd EY12.53%
FCF(TTM)2.43
FCFY10.43%
OCF(TTM)3.16
OCFY13.57%
SpS49.6
BVpS-1.17
TBVpS-9.12
PEG (NY)N/A
PEG (5Y)0.97
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-6.49%
EPS Next 2Y0.17%
EPS Next 3Y2.43%
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 Year2.31%
Revenue Next 2Y1.88%
Revenue Next 3Y1.83%
Revenue Next 5Y1.26%
EBIT growth 1Y-10.66%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year9.32%
EBIT Next 3Y3.63%
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%