SWX:HPQ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

HP Inc., together with its subsidiaries, provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. More Details


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has HP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HPQ is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: HPQ's weekly volatility (0%) has been stable over the past year.


Market Performance


7 Day Return

0%

HPQ

3.6%

CH Tech

0.1%

CH Market


1 Year Return

0%

HPQ

53.1%

CH Tech

-0.2%

CH Market

Return vs Industry: HPQ underperformed the Swiss Tech industry which returned 53.1% over the past year.

Return vs Market: HPQ matched the Swiss Market which returned -0.2% over the past year.


Shareholder returns

HPQIndustryMarket
7 Day0%3.6%0.1%
30 Day0%4.9%8.4%
90 Day0%15.1%3.0%
1 Year3.4%0%55.0%53.1%3.4%-0.2%
3 Year4.9%-4.0%74.3%66.8%19.8%4.9%
5 Year90.2%64.2%177.7%155.4%38.7%15.8%

Long-Term Price Volatility Vs. Market

How volatile is HP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HP undervalued compared to its fair value and its price relative to the market?

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPQ (CHF20.2) is trading below our estimate of fair value (CHF28.44)

Significantly Below Fair Value: HPQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HPQ is good value based on its PE Ratio (11.1x) compared to the XE Tech industry average (21.7x).

PE vs Market: HPQ is good value based on its PE Ratio (11.1x) compared to the Swiss market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: HPQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HPQ has negative assets, so we can't compare its PB Ratio to the XE Tech industry average.


Next Steps

Future Growth

How is HP forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPQ's earnings are forecast to decline over the next 3 years (-5.1% per year).

Earnings vs Market: HPQ's earnings are forecast to decline over the next 3 years (-5.1% per year).

High Growth Earnings: HPQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HPQ's revenue is expected to decline over the next 3 years (-0.09% per year).

High Growth Revenue: HPQ's revenue is forecast to decline over the next 3 years (-0.09% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HPQ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HP performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPQ has high quality earnings.

Growing Profit Margin: HPQ's current net profit margins (5%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: HPQ's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: HPQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HPQ had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Tech industry average (4.6%).


Return on Equity

High ROE: HPQ's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is HP's financial position?


Financial Position Analysis

Short Term Liabilities: HPQ has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HPQ has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HPQ has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HPQ's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: HPQ's debt is well covered by operating cash flow (85.4%).

Interest Coverage: HPQ's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet


Next Steps

Dividend

What is HP current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HPQ's dividend (3.48%) is higher than the bottom 25% of dividend payers in the Swiss market (1.86%).

High Dividend: HPQ's dividend (3.48%) is low compared to the top 25% of dividend payers in the Swiss market (3.75%).


Stability and Growth of Payments

Stable Dividend: HPQ's dividend payments have been volatile in the past 10 years.

Growing Dividend: HPQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), HPQ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HPQ's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Enrique Lores (54 yo)

1

Tenure

US$7,198,888

Compensation

Mr. Enrique J. Lores has been President, Chief Executive Officer and Director of HP Inc since November 1, 2019. He was the President of Imaging, Printing and Solutions at HP Inc. (also known as, Hewlett-Pa...


CEO Compensation Analysis

Compensation vs Market: Enrique's total compensation ($USD7.20M) is about average for companies of similar size in the Swiss market ($USD5.97M).

Compensation vs Earnings: Enrique's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Enrique Lores
CEO, President & Director1yrUS$7.20m0.033%
$ 9.3m
Kim Rivera
President of Strategy & Business Management5yrsUS$6.58m0.011%
$ 3.1m
Alex Cho
President of Personal Systems Business2.42yrsUS$5.46m0.0020%
$ 548.9k
Marie Myers
Chief Transformation Officer & Acting CFO0.083yrno data0%
$ 0
Glen Hopkins
Interim Chief Technology Officer & Global Head of HP Labs0.67yrno datano data
Beth Howe
VP & Head of Investor Relationsno datano datano data
Judy Glazer
Global Head of Product Sustainability and Complianceno datano datano data
Jeff Dahncke
Head of Corporate Communicationsno datano datano data
Vikrant Batra
Chief Marketing Officer2.25yrsno datano data
Tracy Keogh
Chief Human Resources Officer5yrsUS$5.19m0.027%
$ 7.4m
Bernard Meric
Vice President of Europe and Managing Director of Europeno datano datano data
James Murrin
Chief Operating Officer of Enterprise Group7.25yrsno datano data

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: HPQ's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Enrique Lores
CEO, President & Director1yrUS$7.20m0.033%
$ 9.3m
Robert Bennett
Independent Director7.33yrsUS$340.26k0.0093%
$ 2.6m
Stacey Mobley
Independent Director5.83yrsUS$319.93k0.0038%
$ 1.1m
Richard Clemmer
Independent Director0.67yrno data0.00038%
$ 105.3k
Charles Bergh
Independent Chairman of the Board3.33yrsUS$519.88k0.00074%
$ 205.1k
Stephanie Burns
Independent Director5yrsUS$343.25k0.0046%
$ 1.3m
Aida Alvarez
Independent Director4.67yrsUS$319.93k0.0037%
$ 1.0m
Subra Suresh
Independent Director5.83yrsUS$321.93k0.0037%
$ 1.0m
Mary Citrino
Independent Director5.83yrsUS$357.25k0.0028%
$ 773.4k
Shumeet Banerji
Independent Director9.83yrsUS$338.26k0.0033%
$ 923.1k
Yoky Matsuoka
Independent Director1.83yrsUS$426.60k0.0027%
$ 756.8k
Stacy Brown-Philpot
Independent Director5.83yrsUS$321.93k0.0038%
$ 1.1m

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: HPQ's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HPQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HP Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HP Inc.
  • Ticker: HPQ
  • Exchange: SWX
  • Founded: 1939
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$30.588b
  • Listing Market Cap: US$27.720b
  • Shares outstanding: 1.37b
  • Website: https://www.hp.com

Number of Employees


Location

  • HP Inc.
  • 1501 Page Mill Road
  • Palo Alto
  • California
  • 94304
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HPQNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HPQ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
7HPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
HWPXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
HPQSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
HPQSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
HPQ-UETLX (Eurotlx)YesCommon StockITEURJan 1968
0J2ELSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
HPQWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
HPQBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 USD0.01ARARSJul 2001
HPQB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLAug 2012

Biography

HP Inc., together with its subsidiaries, provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and inte...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 18:10
End of Day Share Price2020/11/27 00:00
Earnings2020/10/31
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.