HP INC (HPQ) Stock Fundamental Analysis
NYSE:HPQ • US40434L1052
18.35 USD
-0.14 (-0.76%)
At close: Feb 18, 2026
18.435 USD
+0.08 (+0.46%)
After Hours: 2/18/2026, 8:04:00 PM
Taking everything into account, HPQ scores 6 out of 10 in our fundamental rating. HPQ was compared to 36 industry peers in the Technology Hardware, Storage & Peripherals industry. While HPQ has a great profitability rating, there are some minor concerns on its financial health. HPQ is cheap, but on the other hand it scores bad on growth. HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year HPQ was profitable.
- In the past year HPQ had a positive cash flow from operations.
- HPQ had positive earnings in each of the past 5 years.
- Each year in the past 5 years HPQ had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.05%, HPQ belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
- The Return On Invested Capital of HPQ (25.87%) is better than 94.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HPQ is significantly above the industry average of 16.56%.
- The 3 year average ROIC (29.98%) for HPQ is well above the current ROIC(25.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 25.87% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.98%
ROIC(5y)35.66%
1.3 Margins
- The Profit Margin of HPQ (4.57%) is better than 80.56% of its industry peers.
- In the last couple of years the Profit Margin of HPQ has declined.
- Looking at the Operating Margin, with a value of 6.55%, HPQ is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- HPQ's Operating Margin has been stable in the last couple of years.
- HPQ has a worse Gross Margin (20.60%) than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of HPQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% |
OM growth 3Y-6.4%
OM growth 5Y-0.83%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HPQ is creating value.
- HPQ has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for HPQ has been reduced compared to 5 years ago.
- HPQ has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.59, we must say that HPQ is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.59, HPQ perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- HPQ has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as HPQ would need 3.45 years to pay back of all of its debts.
- HPQ has a better Debt to FCF ratio (3.45) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.59 |
ROIC/WACC3.7
WACC7%
2.3 Liquidity
- HPQ has a Current Ratio of 0.77. This is a bad value and indicates that HPQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- HPQ's Current ratio of 0.77 is on the low side compared to the rest of the industry. HPQ is outperformed by 83.33% of its industry peers.
- A Quick Ratio of 0.48 indicates that HPQ may have some problems paying its short term obligations.
- HPQ has a Quick ratio of 0.48. This is amonst the worse of the industry: HPQ underperforms 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- The earnings per share for HPQ have decreased by -7.67% in the last year.
- Measured over the past 5 years, HPQ shows a small growth in Earnings Per Share. The EPS has been growing by 6.64% on average per year.
- The Revenue has been growing slightly by 3.24% in the past year.
- HPQ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
3.2 Future
- Based on estimates for the next years, HPQ will show a small growth in Earnings Per Share. The EPS will grow by 2.75% on average per year.
- Based on estimates for the next years, HPQ will show a small growth in Revenue. The Revenue will grow by 0.95% on average per year.
EPS Next Y-1.41%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
EPS Next 5Y2.75%
Revenue Next Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
Revenue Next 5Y0.95%
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.
- 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
- Based on the Price/Earnings ratio of 5.86, the valuation of HPQ can be described as very cheap.
- 100.00% of the companies in the same industry are more expensive than HPQ, based on the Price/Earnings ratio.
- HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
- A Price/Forward Earnings ratio of 5.95 indicates a rather cheap valuation of HPQ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 94.44% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.16, HPQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPQ is valued cheaper than 100.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HPQ is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 5.04 |
4.3 Compensation for Growth
- The decent profitability rating of HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y1.34%
EPS Next 3Y3.26%
5. Dividend
5.1 Amount
- HPQ has a Yearly Dividend Yield of 6.36%, which is a nice return.
- In the last 3 months the price of HPQ has falen by -23.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- HPQ's Dividend Yield is rather good when compared to the industry average which is at 0.65. HPQ pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
- The dividend of HPQ is nicely growing with an annual growth rate of 10.14%!
- HPQ has paid a dividend for at least 10 years, which is a reliable track record.
- HPQ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.14%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
- HPQ pays out 43.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
- HPQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.02%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
18.35
-0.14 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)11-25 2025-11-25/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners85.73%
Inst Owner Change-0.68%
Ins Owners0.25%
Ins Owner Change6.37%
Market Cap16.84B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts53.85
Price Target25.39 (38.37%)
Short Float %10.5%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.02%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-11 2026-03-11 (0.3)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.64%
Min EPS beat(2)-1.12%
Max EPS beat(2)-0.16%
EPS beat(4)0
Avg EPS beat(4)-3.83%
Min EPS beat(4)-12.57%
Max EPS beat(4)-0.16%
EPS beat(8)1
Avg EPS beat(8)-2.72%
EPS beat(12)2
Avg EPS beat(12)-1.72%
EPS beat(16)5
Avg EPS beat(16)-0.81%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.72%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)0.72%
Revenue beat(8)5
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-1.01%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)-4.93%
PT rev (3m)-11.59%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.95 | ||
| P/S | 0.3 | ||
| P/FCF | 6.02 | ||
| P/OCF | 4.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.04 |
EPS(TTM)3.13
EY17.06%
EPS(NY)3.09
Fwd EY16.82%
FCF(TTM)3.05
FCFY16.62%
OCF(TTM)4.03
OCFY21.95%
SpS60.24
BVpS-0.38
TBVpS-10.96
PEG (NY)N/A
PEG (5Y)0.88
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 25.87% | ||
| ROICexc | 36.68% | ||
| ROICexgc | N/A | ||
| OM | 6.55% | ||
| PM (TTM) | 4.57% | ||
| GM | 20.6% | ||
| FCFM | 5.06% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.98%
ROIC(5y)35.66%
ROICexc(3y)41.65%
ROICexc(5y)53.01%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.56%
ROCE(5y)40.39%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.17%
ROICexc growth 5Y-18.69%
OM growth 3Y-6.4%
OM growth 5Y-0.83%
PM growth 3Y-2.79%
PM growth 5Y-1.85%
GM growth 3Y1.86%
GM growth 5Y2.26%
F-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 97.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 8.29 | ||
| Cash Conversion | 81.43% | ||
| Profit Quality | 110.72% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.59 |
F-Score5
WACC7%
ROIC/WACC3.7
Cap/Depr(3y)80.3%
Cap/Depr(5y)83.29%
Cap/Sales(3y)1.29%
Cap/Sales(5y)1.21%
Profit Quality(3y)105.09%
Profit Quality(5y)104.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.67%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%0%
EPS Next Y-1.41%
EPS Next 2Y1.34%
EPS Next 3Y3.26%
EPS Next 5Y2.75%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%4.16%
Revenue Next Year1.51%
Revenue Next 2Y1.35%
Revenue Next 3Y1.25%
Revenue Next 5Y0.95%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.34%
EBIT growth 5Y-1.31%
EBIT Next Year13.06%
EBIT Next 3Y4.8%
EBIT Next 5Y1.23%
FCF growth 1Y-11.31%
FCF growth 3Y-8.64%
FCF growth 5Y-5.6%
OCF growth 1Y-1.39%
OCF growth 3Y-6.08%
OCF growth 5Y-3.05%
HP INC / HPQ FAQ
Can you provide the ChartMill fundamental rating for HP INC?
ChartMill assigns a fundamental rating of 6 / 10 to HPQ.
What is the valuation status for HPQ stock?
ChartMill assigns a valuation rating of 8 / 10 to HP INC (HPQ). This can be considered as Undervalued.
How profitable is HP INC (HPQ) stock?
HP INC (HPQ) has a profitability rating of 7 / 10.
Can you provide the financial health for HPQ stock?
The financial health rating of HP INC (HPQ) is 4 / 10.
What is the earnings growth outlook for HP INC?
The Earnings per Share (EPS) of HP INC (HPQ) is expected to decline by -1.41% in the next year.