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 28 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 is cheap, 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.
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
The Return On Assets of 7HP (6.49%) is better than 78.57% of its industry peers.
7HP's Return On Invested Capital of 26.59% is amongst the best of the industry. 7HP outperforms 92.86% 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 15.99%.
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 has a better Profit Margin (4.64%) than 64.29% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP has a better Operating Margin (7.08%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of 7HP has grown nicely.
Looking at the Gross Margin, with a value of 21.15%, 7HP is doing worse than 71.43% of the companies in the same industry.
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
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.
7HP has less shares outstanding than it did 5 years ago.
7HP has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of 7HP (4.04) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | N/A |
ROIC/WACC2.76
WACC9.62%
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.
Looking at the Current ratio, with a value of 0.73, 7HP is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that 7HP may have some problems paying its short term obligations.
7HP has a Quick ratio of 0.42. This is amonst the worse of the industry: 7HP underperforms 89.29% of its industry peers.
| 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.
7HP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
The Revenue has been growing slightly by 2.45% in the past year.
Measured over the past years, 7HP shows a decrease in Revenue. The Revenue has been decreasing by -1.84% on average per year.
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 5.32% 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 1.21% 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
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
The Price/Earnings ratio is 7.44, which indicates a rather cheap valuation of 7HP.
Based on the Price/Earnings ratio, 7HP is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.57, the valuation of 7HP can be described as very cheap.
78.57% of the companies in the same industry are more expensive than 7HP, based on the Price/Forward Earnings ratio.
7HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 6.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 7HP indicates a rather cheap valuation: 7HP is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
7HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)0.85
EPS Next 2Y3.55%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
7HP has a Yearly Dividend Yield of 4.64%, which is a nice return.
In the last 3 months the price of 7HP has falen by -20.81%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.28. 7HP pays more dividend than 100.00% of the companies in the same industry.
7HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
The dividend of 7HP is nicely growing with an annual growth rate of 11.65%!
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 2Y3.55%
EPS Next 3Y4.63%
FRA:7HP (6/19/2025, 7:00:00 PM)
20.755
-0.34 (-1.61%)
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 Cap19.57B
Analysts67
Price Target29.86 (43.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend0.98
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)-0.22%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)1.24%
PT rev (3m)-14.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.42%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-3.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 6.57 | ||
| P/S | 0.41 | ||
| P/FCF | 8.47 | ||
| P/OCF | 6.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.62 |
EPS(TTM)2.79
EY13.44%
EPS(NY)3.16
Fwd EY15.22%
FCF(TTM)2.45
FCFY11.81%
OCF(TTM)3.19
OCFY15.36%
SpS50.05
BVpS-1.18
TBVpS-9.21
PEG (NY)2.32
PEG (5Y)0.85
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
WACC9.62%
ROIC/WACC2.76
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 Y3.21%
EPS Next 2Y3.55%
EPS Next 3Y4.63%
EPS Next 5Y5.32%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y-5.5%
Revenue growth 5Y-1.84%
Sales Q2Q%3.28%
Revenue Next Year2.43%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.21%
EBIT growth 1Y-10.66%
EBIT growth 3Y-9.55%
EBIT growth 5Y0.07%
EBIT Next Year13.8%
EBIT Next 3Y4.08%
EBIT Next 5Y1.68%
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%