HP INC (7HP.DE) Stock Fundamental Analysis
FRA:7HP - Deutsche Boerse Ag - US40434L1052 - Common Stock - Currency: EUR
7HP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Technology Hardware, Storage & Peripherals industry. While 7HP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 7HP has a bad growth rate and is valued cheaply. 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.
Each year in the past 5 years 7HP had a positive operating cash flow.
1.2 Ratios
7HP's Return On Assets of 6.98% is amongst the best of the industry. 7HP outperforms 80.77% of its industry peers.
With an excellent Return On Invested Capital value of 30.02%, 7HP belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 17.69%.
| 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
The Profit Margin of 7HP (5.04%) is better than 69.23% of its industry peers.
7HP's Profit Margin has been stable in the last couple of years.
7HP's Operating Margin of 7.61% is fine compared to the rest of the industry. 7HP outperforms 73.08% of its industry peers.
In the last couple of years the Operating Margin of 7HP has grown nicely.
With a Gross Margin value of 21.85%, 7HP is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
7HP's Gross Margin has improved in the last couple of years.
| 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 7HP is creating value.
7HP has less shares outstanding than it did 1 year ago.
7HP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 7HP has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that 7HP is in the distress zone and has some risk of bankruptcy.
7HP has a Altman-Z score of 1.76. This is comparable to the rest of the industry: 7HP outperforms 57.69% of its industry peers.
The Debt to FCF ratio of 7HP is 2.97, which is a good value as it means it would take 7HP, 2.97 years of fcf income to pay off all of its debts.
7HP has a Debt to FCF ratio of 2.97. This is in the better half of the industry: 7HP outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 1.76 |
ROIC/WACC4
WACC7.51%
2.3 Liquidity
A Current Ratio of 0.72 indicates that 7HP may have some problems paying its short term obligations.
7HP has a worse Current ratio (0.72) than 88.46% of its industry peers.
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 92.31% 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 7HP 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, 7HP shows a small growth in Revenue. The Revenue has grown by 1.51% 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)-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
Based on estimates for the next years, 7HP will show a small growth in Earnings Per Share. The EPS will grow by 5.32% on average per year.
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 Y3.52%
EPS Next 2Y3.82%
EPS Next 3Y4.58%
EPS Next 5Y5.32%
Revenue Next Year2.42%
Revenue Next 2Y2.18%
Revenue Next 3Y1.74%
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
With a Price/Earnings ratio of 7.74, the valuation of 7HP can be described as very cheap.
Based on the Price/Earnings ratio, 7HP is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
7HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.99.
A Price/Forward Earnings ratio of 7.03 indicates a rather cheap valuation of 7HP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 7HP indicates a somewhat cheap valuation: 7HP is cheaper than 73.08% of the companies listed in the same industry.
7HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 7HP is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 6.3 |
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)2.2
PEG (5Y)0.89
EPS Next 2Y3.82%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, 7HP is a good candidate for dividend investing.
In the last 3 months the price of 7HP has falen by -27.58%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.48, 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 2.44, 7HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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
39.48% of the earnings are spent on dividend by 7HP. This is a low number and sustainable payout ratio.
The dividend of 7HP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y3.82%
EPS Next 3Y4.58%
FRA:7HP (5/7/2025, 7:00:00 PM)
22.665
-0.06 (-0.26%)
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 Cap21.37B
Analysts67
Price Target29.49 (30.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend0.98
Dividend Growth(5Y)11.65%
DP39.48%
Div Incr Years6
Div Non Decr Years6
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)-1.15%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)-12.66%
PT rev (3m)-15.25%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.03 | ||
| P/S | 0.45 | ||
| P/FCF | 7.41 | ||
| P/OCF | 6.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)2.93
EY12.93%
EPS(NY)3.23
Fwd EY14.23%
FCF(TTM)3.06
FCFY13.5%
OCF(TTM)3.75
OCFY16.54%
SpS50.47
BVpS-1
TBVpS-10.23
PEG (NY)2.2
PEG (5Y)0.89
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 | 1.76 |
F-Score7
WACC7.51%
ROIC/WACC4
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 Y3.52%
EPS Next 2Y3.82%
EPS Next 3Y4.58%
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 Year2.42%
Revenue Next 2Y2.18%
Revenue Next 3Y1.74%
Revenue Next 5Y1.21%
EBIT growth 1Y-3.76%
EBIT growth 3Y-9.21%
EBIT growth 5Y0.07%
EBIT Next Year14.84%
EBIT Next 3Y3.39%
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%