HP INC (HPQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HPQ - US40434L1052 - Common Stock
20.61 USD
-0.16 (-0.77%)
20.7 USD
+0.09 (+0.44%)
Taking everything into account, HPQ scores 5 out of 10 in our fundamental rating. HPQ was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While HPQ is still in line with the averages on profitability rating, there are concerns on its financial health. HPQ is valued quite cheap, but it does not seem to be growing. HPQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- HPQ had positive earnings in the past year.
- In the past year HPQ had a positive cash flow from operations.
- In the past 5 years HPQ has always been profitable.
- Each year in the past 5 years HPQ had a positive operating cash flow.
1.2 Ratios
- HPQ has a better Return On Assets (6.05%) than 80.00% of its industry peers.
- HPQ has a better Return On Invested Capital (25.99%) than 94.29% of its industry peers.
- HPQ had an Average Return On Invested Capital over the past 3 years of 29.86%. This is significantly above the industry average of 16.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROIC | 25.99% |
ROA(3y)7.28%
ROA(5y)9.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.86%
ROIC(5y)35.59%
1.3 Margins
- The Profit Margin of HPQ (4.57%) is better than 80.00% of its industry peers.
- HPQ's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 6.55%, HPQ is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
- HPQ's Operating Margin has been stable in the last couple of years.
- HPQ has a Gross Margin of 20.60%. This is in the lower half of the industry: HPQ underperforms 68.57% 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-6.95%
OM growth 5Y-1.18%
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.
- HPQ has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HPQ has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of HPQ is 3.45, which is a good value as it means it would take HPQ, 3.45 years of fcf income to pay off all of its debts.
- HPQ has a Debt to FCF ratio of 3.45. This is in the better half of the industry: HPQ outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | N/A |
ROIC/WACC3.54
WACC7.35%
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.
- The Current ratio of HPQ (0.77) is worse than 80.00% of its industry peers.
- HPQ has a Quick 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.
- Looking at the Quick ratio, with a value of 0.48, HPQ is doing worse than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- HPQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.67%.
- 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.
- HPQ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
- The Revenue has been decreasing by -0.48% on average over the past years.
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
- HPQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.75% yearly.
- Based on estimates for the next years, HPQ will show a small growth in Revenue. The Revenue will grow by 0.50% on average per year.
EPS Next Y-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
EPS Next 5Y2.75%
Revenue Next Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y0.5%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 6.58, which indicates a rather cheap valuation of HPQ.
- Based on the Price/Earnings ratio, HPQ is valued cheaper than 100.00% of the companies in the same industry.
- HPQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
- With a Price/Forward Earnings ratio of 6.63, the valuation of HPQ can be described as very cheap.
- Based on the Price/Forward Earnings ratio, HPQ is valued cheaper than 91.43% of the companies in the same industry.
- HPQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 100.00% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPQ indicates a rather cheap valuation: HPQ is cheaper than 91.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
- The decent profitability rating of HPQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y1.91%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
- HPQ has a Yearly Dividend Yield of 5.61%, which is a nice return.
- The stock price of HPQ dropped by -24.70% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.64, HPQ pays a better dividend. On top of this HPQ pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, HPQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
- On average, the dividend of HPQ grows each year by 9.97%, 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)9.97%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
- 43.02% of the earnings are spent on dividend by HPQ. This is a bit on the high side, but may be sustainable.
- The dividend of HPQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.02%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
20.61
-0.16 (-0.77%)
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)02-25 2026-02-25/amc
Inst Owners85.73%
Inst Owner Change0.01%
Ins Owners0.25%
Ins Owner Change8.3%
Market Cap19.26B
Revenue(TTM)55.30B
Net Income(TTM)2.53B
Analysts55.83
Price Target26.71 (29.6%)
Short Float %7.52%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend1.16
Dividend Growth(5Y)9.97%
DP43.02%
Div Incr Years14
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)-6.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 6.63 | ||
| P/S | 0.35 | ||
| P/FCF | 6.88 | ||
| P/OCF | 5.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.59 |
EPS(TTM)3.13
EY15.19%
EPS(NY)3.11
Fwd EY15.08%
FCF(TTM)3
FCFY14.53%
OCF(TTM)3.96
OCFY19.19%
SpS59.16
BVpS-0.37
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.99
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | N/A | ||
| ROCE | 28.97% | ||
| ROIC | 25.99% | ||
| ROICexc | 36.92% | ||
| ROICexgc | 3251.08% | ||
| 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)29.86%
ROIC(5y)35.59%
ROICexc(3y)41.51%
ROICexc(5y)52.92%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.38%
ROCE(5y)40.28%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.52%
ROICexc growth 5Y-18.88%
OM growth 3Y-6.95%
OM growth 5Y-1.18%
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 | 1.94 | ||
| Cap/Depr | 97.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.43% | ||
| Profit Quality | 110.72% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | N/A |
F-Score5
WACC7.35%
ROIC/WACC3.54
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-0.69%
EPS Next 2Y1.91%
EPS Next 3Y4.03%
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 Year2.03%
Revenue Next 2Y1.68%
Revenue Next 3Y1.63%
Revenue Next 5Y0.5%
EBIT growth 1Y-13.76%
EBIT growth 3Y-10.87%
EBIT growth 5Y-1.66%
EBIT Next Year13.75%
EBIT Next 3Y5.38%
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 5 / 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 6 / 10.
Can you provide the financial health for HPQ stock?
The financial health rating of HP INC (HPQ) is 3 / 10.
What is the earnings growth outlook for HP INC?
The Earnings per Share (EPS) of HP INC (HPQ) is expected to decline by -0.69% in the next year.