HP INC (HPQ) Fundamental Analysis & Valuation

NYSE:HPQ • US40434L1052

Current stock price

19.32 USD
-0.14 (-0.72%)
At close:
19.46 USD
+0.14 (+0.72%)
After Hours:

This HPQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HPQ Profitability Analysis

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.
  • HPQ had a positive operating cash flow in each of the past 5 years.
HPQ Yearly Net Income VS EBIT VS OCF VS FCFHPQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • The Return On Assets of HPQ (6.04%) is better than 86.49% of its industry peers.
  • The Return On Invested Capital of HPQ (26.16%) is better than 94.59% of its industry peers.
  • HPQ had an Average Return On Invested Capital over the past 3 years of 29.98%. This is significantly above the industry average of 15.72%.
Industry RankSector Rank
ROA 6.04%
ROE N/A
ROIC 26.16%
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.98%
ROIC(5y)35.66%
HPQ Yearly ROA, ROE, ROICHPQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -200 -400 -600 -800

1.3 Margins

  • With a decent Profit Margin value of 4.46%, HPQ is doing good in the industry, outperforming 78.38% of the companies in the same industry.
  • HPQ's Profit Margin has declined in the last couple of years.
  • The Operating Margin of HPQ (6.38%) is better than 75.68% of its industry peers.
  • HPQ's Operating Margin has been stable in the last couple of years.
  • HPQ's Gross Margin of 20.25% is in line compared to the rest of the industry. HPQ outperforms 40.54% of its industry peers.
  • HPQ's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.38%
PM (TTM) 4.46%
GM 20.25%
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%
HPQ Yearly Profit, Operating, Gross MarginsHPQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. HPQ Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPQ is creating value.
  • Compared to 1 year ago, HPQ has less shares outstanding
  • Compared to 5 years ago, HPQ has less shares outstanding
  • Compared to 1 year ago, HPQ has an improved debt to assets ratio.
HPQ Yearly Shares OutstandingHPQ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
HPQ Yearly Total Debt VS Total AssetsHPQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • Based on the Altman-Z score of 1.61, we must say that HPQ is in the distress zone and has some risk of bankruptcy.
  • HPQ has a Altman-Z score of 1.61. This is comparable to the rest of the industry: HPQ outperforms 48.65% of its industry peers.
  • HPQ has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as HPQ would need 3.37 years to pay back of all of its debts.
  • The Debt to FCF ratio of HPQ (3.37) is better than 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Altman-Z 1.61
ROIC/WACC3.62
WACC7.23%
HPQ Yearly LT Debt VS Equity VS FCFHPQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that HPQ may have some problems paying its short term obligations.
  • HPQ has a Current ratio of 0.76. This is amonst the worse of the industry: HPQ underperforms 81.08% of its industry peers.
  • A Quick Ratio of 0.46 indicates that HPQ may have some problems paying its short term obligations.
  • HPQ has a Quick ratio of 0.46. This is amonst the worse of the industry: HPQ underperforms 81.08% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.46
HPQ Yearly Current Assets VS Current LiabilitesHPQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. HPQ Growth Analysis

3.1 Past

  • The earnings per share for HPQ have decreased by -3.61% in the last year.
  • The Earnings Per Share has been growing slightly by 6.64% on average over the past years.
  • Looking at the last year, HPQ shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
  • Measured over the past years, HPQ shows a decrease in Revenue. The Revenue has been decreasing by -0.48% on average per year.
EPS 1Y (TTM)-3.61%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%9.46%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%

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 2.11% on average per year.
  • The Revenue is expected to grow by 1.30% on average over the next years.
EPS Next Y-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
EPS Next 5Y2.11%
Revenue Next Year2.33%
Revenue Next 2Y1.35%
Revenue Next 3Y1.15%
Revenue Next 5Y1.3%

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.
HPQ Yearly Revenue VS EstimatesHPQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
HPQ Yearly EPS VS EstimatesHPQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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8

4. HPQ Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.04, the valuation of HPQ can be described as very cheap.
  • Based on the Price/Earnings ratio, HPQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, HPQ is valued rather cheaply.
  • A Price/Forward Earnings ratio of 6.36 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 91.89% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of HPQ to the average of the S&P500 Index (22.51), we can say HPQ is valued rather cheaply.
Industry RankSector Rank
PE 6.04
Fwd PE 6.36
HPQ Price Earnings VS Forward Price EarningsHPQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 100.00% of the companies in the same industry are more expensive than HPQ, based on the Enterprise Value to EBITDA ratio.
  • 89.19% of the companies in the same industry are more expensive than HPQ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.14
EV/EBITDA 5.37
HPQ Per share dataHPQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • HPQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-1.51%
EPS Next 3Y2.47%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. HPQ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.49%, HPQ is a good candidate for dividend investing.
  • HPQ's Dividend Yield is rather good when compared to the industry average which is at 0.63. HPQ pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, HPQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.49%

5.2 History

  • On average, the dividend of HPQ grows each year by 10.14%, which is quite nice.
  • 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
HPQ Yearly Dividends per shareHPQ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HPQ pays out 43.52% 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.
DP43.52%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
HPQ Yearly Income VS Free CF VS DividendHPQ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
HPQ Dividend Payout.HPQ Dividend Payout, showing the Payout Ratio.HPQ Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

HPQ Fundamentals: All Metrics, Ratios and Statistics

HP INC

NYSE:HPQ (3/26/2026, 8:27:31 PM)

After market: 19.46 +0.14 (+0.72%)

19.32

-0.14 (-0.72%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-24
Earnings (Next)05-26
Inst Owners90.28%
Inst Owner Change3.79%
Ins Owners0.12%
Ins Owner Change7.19%
Market Cap17.67B
Revenue(TTM)56.23B
Net Income(TTM)2.51B
Analysts55.38
Price Target23.8 (23.19%)
Short Float %11.29%
Short Ratio5.28
Dividend
Industry RankSector Rank
Dividend Yield 6.49%
Yearly Dividend1.17
Dividend Growth(5Y)10.14%
DP43.52%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-11
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.4%
Min EPS beat(2)-0.16%
Max EPS beat(2)4.95%
EPS beat(4)1
Avg EPS beat(4)-2.22%
Min EPS beat(4)-12.57%
Max EPS beat(4)4.95%
EPS beat(8)2
Avg EPS beat(8)-1.97%
EPS beat(12)3
Avg EPS beat(12)-1.2%
EPS beat(16)5
Avg EPS beat(16)-0.9%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.54%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)2.54%
Revenue beat(8)6
Avg Revenue beat(8)0.39%
Revenue beat(12)6
Avg Revenue beat(12)-0.52%
Revenue beat(16)7
Avg Revenue beat(16)-1.08%
PT rev (1m)-6.25%
PT rev (3m)-10.87%
EPS NQ rev (1m)-5.96%
EPS NQ rev (3m)-6.7%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-5.44%
Revenue NQ rev (1m)5.14%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 6.04
Fwd PE 6.36
P/S 0.31
P/FCF 6.14
P/OCF 4.77
P/B N/A
P/tB N/A
EV/EBITDA 5.37
EPS(TTM)3.2
EY16.56%
EPS(NY)3.04
Fwd EY15.72%
FCF(TTM)3.15
FCFY16.29%
OCF(TTM)4.05
OCFY20.97%
SpS61.48
BVpS-0.84
TBVpS-11.42
PEG (NY)N/A
PEG (5Y)0.91
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 6.04%
ROE N/A
ROCE 29.29%
ROIC 26.16%
ROICexc 35.18%
ROICexgc N/A
OM 6.38%
PM (TTM) 4.46%
GM 20.25%
FCFM 5.12%
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 Turnover1.35
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Debt/EBITDA 1.97
Cap/Depr 88.75%
Cap/Sales 1.47%
Interest Coverage 250
Cash Conversion 82.01%
Profit Quality 114.71%
Current Ratio 0.76
Quick Ratio 0.46
Altman-Z 1.61
F-Score5
WACC7.23%
ROIC/WACC3.62
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)-3.61%
EPS 3Y-8.38%
EPS 5Y6.64%
EPS Q2Q%9.46%
EPS Next Y-6.38%
EPS Next 2Y-1.51%
EPS Next 3Y2.47%
EPS Next 5Y2.11%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-4.21%
Revenue growth 5Y-0.48%
Sales Q2Q%6.92%
Revenue Next Year2.33%
Revenue Next 2Y1.35%
Revenue Next 3Y1.15%
Revenue Next 5Y1.3%
EBIT growth 1Y-12.49%
EBIT growth 3Y-10.34%
EBIT growth 5Y-1.31%
EBIT Next Year8.86%
EBIT Next 3Y4.02%
EBIT Next 5Y0.75%
FCF growth 1Y-8.14%
FCF growth 3Y-8.64%
FCF growth 5Y-5.6%
OCF growth 1Y-0.05%
OCF growth 3Y-6.08%
OCF growth 5Y-3.05%

HP INC / HPQ Fundamental Analysis 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 -6.38% in the next year.