HP INC (7HP.DE) Stock Fundamental Analysis
Europe - FRA:7HP - US40434L1052 - Common Stock
22.865 EUR
+0 (+0.02%)
We assign a fundamental rating of 5 out of 10 to 7HP. 7HP was compared to 30 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. Finally 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
7HP has a better Return On Assets (6.62%) than 73.33% of its industry peers.
7HP's Return On Invested Capital of 25.92% is amongst the best of the industry. 7HP outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 7HP is significantly above the industry average of 17.60%.
The last Return On Invested Capital (25.92%) for 7HP is well below the 3 year average (31.68%), which needs to be investigated, but indicates that 7HP had better years and this may not be a problem.
| 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's Profit Margin of 4.83% is fine compared to the rest of the industry. 7HP outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of 7HP has remained more or less at the same level.
With a decent Operating Margin value of 6.71%, 7HP is doing good in the industry, outperforming 73.33% of the companies in the same industry.
7HP's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.89%, 7HP is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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
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
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.
Looking at the Debt to FCF ratio, with a value of 3.38, 7HP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | N/A |
ROIC/WACC3.55
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 7HP may have some problems paying its short term obligations.
7HP has a worse Current ratio (0.74) than 86.67% 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.
7HP has a Quick ratio of 0.44. This is amonst the worse of the industry: 7HP underperforms 90.00% of its industry peers.
| 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.
7HP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.61%.
7HP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
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
7HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.13% yearly.
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-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
EPS Next 5Y2.13%
Revenue Next Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
Revenue Next 5Y1.32%
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
A Price/Earnings ratio of 8.53 indicates a reasonable valuation of 7HP.
Based on the Price/Earnings ratio, 7HP is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
7HP is valuated cheaply when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.88, which indicates a rather cheap valuation of 7HP.
Based on the Price/Forward Earnings ratio, 7HP is valued cheaper than 86.67% of the companies in the same industry.
7HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than 7HP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 7HP is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.78 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
The decent profitability rating of 7HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, 7HP is a good candidate for dividend investing.
7HP's Dividend Yield is rather good when compared to the industry average which is at 2.37. 7HP pays more dividend than 93.33% of the companies 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 | 4.37% |
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
7HP pays out 40.95% of its income as dividend. 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.
DP40.95%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
FRA:7HP (10/6/2025, 7:00:00 PM)
22.865
+0 (+0.02%)
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 Cap21.37B
Analysts66.36
Price Target24.24 (6.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend0.95
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)2.24%
PT rev (3m)0.8%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.46 | ||
| P/FCF | 8.78 | ||
| P/OCF | 6.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.68
EY11.72%
EPS(NY)2.9
Fwd EY12.68%
FCF(TTM)2.6
FCFY11.39%
OCF(TTM)3.39
OCFY14.81%
SpS50.12
BVpS-0.83
TBVpS-8.81
PEG (NY)N/A
PEG (5Y)0.98
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%
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 Turnover1.37
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
WACC7.3%
ROIC/WACC3.55
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-7.27%
EPS Next 2Y-0.05%
EPS Next 3Y1.69%
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 Year2.91%
Revenue Next 2Y2.14%
Revenue Next 3Y1.9%
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%