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Market Cap

US$46.6b

Last Updated

2021/04/16 22:41 UTC

Data Sources

Company Financials +

Executive Summary

HP Inc. 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

Solid track record, good value and pays a dividend.


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 US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HPQ's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

HPQ

1.0%

US Tech

1.3%

US Market


1 Year Return

118.9%

HPQ

90.1%

US Tech

53.9%

US Market

Return vs Industry: HPQ exceeded the US Tech industry which returned 88.4% over the past year.

Return vs Market: HPQ exceeded the US Market which returned 57.5% over the past year.


Shareholder returns

HPQIndustryMarket
7 Day3.0%1.0%1.3%
30 Day10.5%7.1%3.3%
90 Day35.0%6.9%8.9%
1 Year126.4%118.9%91.7%90.1%56.6%53.9%
3 Year73.6%57.8%207.6%194.9%64.4%53.6%
5 Year215.0%169.5%398.8%350.8%120.4%95.7%

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

Valuation

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

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPQ ($33.62) is trading below our estimate of fair value ($52.97)

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 (14.3x) compared to the US Tech industry average (29x).

PE vs Market: HPQ is good value based on its PE Ratio (14.3x) compared to the US market (22.3x).


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 US Tech industry average.


Future Growth

How is HP forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-1.4%

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 (-1.4% per year).

Earnings vs Market: HPQ's earnings are forecast to decline over the next 3 years (-1.4% 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 (-0.03% per year).

High Growth Revenue: HPQ's revenue is forecast to decline over the next 3 years (-0.03% 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


Past Performance

How has HP performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPQ has high quality earnings.

Growing Profit Margin: HPQ's current net profit margins (5.6%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: HPQ's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: HPQ's earnings growth over the past year (6.8%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: HPQ earnings growth over the past year (6.8%) exceeded the Tech industry -26.4%.


Return on Equity

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


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 (65.6%).

Interest Coverage: HPQ's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet


Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HPQ's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: HPQ's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 (30.6%), 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 (26.7% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Enrique Lores (54 yo)

1.42yrs

Tenure

US$12,479,815

Compensation

Mr. Enrique J. Lores has been President, Chief Executive Officer and Director of HP Inc since November 1, 2019. Mr. Lores served as the President of Imaging, Printing, Solutions and Services at HP Inc. (al...


CEO Compensation Analysis

Compensation vs Market: Enrique's total compensation ($USD12.48M) is about average for companies of similar size in the US market ($USD11.02M).

Compensation vs Earnings: Enrique's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HPQ's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: HPQ's board of directors are considered experienced (5.8 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: NYSE
  • Founded: 1939
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$46.578b
  • Shares outstanding: 1.25b
  • Website: https://www8.hp.com

Number of Employees


Location

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

Listings


Biography

HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:41
End of Day Share Price2021/04/16 00:00
Earnings2021/01/31
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.