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HPQ

HPNYSE:HPQ Stock Report

Market Cap

US$31.8b

7D

-0.2%

1Y

54.2%

Updated

23 Sep, 2021

Data

Company Financials +
HPQ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends4/6

HPQ Overview

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.

HP Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HP
Historical stock prices
Current Share PriceUS$27.98
52 Week HighUS$17.25
52 Week LowUS$36.00
Beta1.01
1 Month Change-3.18%
3 Month Change-5.82%
1 Year Change54.16%
3 Year Change9.17%
5 Year Change81.81%
Change since IPO353.35%

Recent News & Updates

Sep 23

New Microsoft Surface And HP PCs Demonstrate Ongoing PC Innovation

Both HP and Microsoft recently debuted a wide range of creative new PC designs, which clearly highlight that innovation in the PC world is still very much alive and well. HP unveiled PCs in several different form factors - from a tablet to a 2-in-1 convertible to a huge, widescreen all-in-one - as well as new monitors and software tools. Microsoft refreshed a large portion of its Surface product line at their launch event today and made a very notable and powerful addition in the form of the Surface Studio Laptop, a new design that evolves the Surface Laptop with a convertible screen design that’s similar to the Surface Studio desktop PC. By leveraging many of the new capabilities being built into Windows 11, such as Snap windows among many others, the new designs bring even more experiences to the PC right at a time when they are most needed.

Aug 30

HP Inc.: Growth, Cheap, Dividends, Buybacks

HP is a PC/printer manufacturer facing several risks and challenges: supply chain challenges, margin risk for printing supplies, and a hesitant market for its shares after a huge runup. However, HP is cheap based on several fundamentals: EV/EBIT, EV/Revenue, and P/FCF. Moreover, the company pays a good dividend and has bought back shares. Expectations are positive because of expected increases in PC usage, extra PC demand from the release of Windows 11 and extra demand as more people return to their offices.

Shareholder Returns

HPQUS TechUS Market
7D-0.2%-2.5%-0.5%
1Y54.2%40.2%37.5%

Return vs Industry: HPQ exceeded the US Tech industry which returned 40.4% over the past year.

Return vs Market: HPQ exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is HPQ's price volatile compared to industry and market?
HPQ volatility
HPQ Beta1.01
Industry Beta1.2
Market Beta1

Stable Share Price: HPQ is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
193953,000Enrique Loreshttps://www8.hp.com

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 through three segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktop and notebook personal computers, workstations, thin clients, commercial mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services.

HP Fundamentals Summary

How do HP's earnings and revenue compare to its market cap?
HPQ fundamental statistics
Market CapUS$31.80b
Earnings (TTM)US$4.07b
Revenue (TTM)US$62.07b

7.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HPQ income statement (TTM)
RevenueUS$62.07b
Cost of RevenueUS$49.24b
Gross ProfitUS$12.83b
ExpensesUS$8.76b
EarningsUS$4.07b

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.22
Gross Margin20.67%
Net Profit Margin6.56%
Debt/Equity Ratio-181.3%

How did HPQ perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

23%

Payout Ratio

Valuation

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

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPQ ($27.98) is trading below our estimate of fair value ($53.12)

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 (7.9x) compared to the US Tech industry average (20.1x).

PE vs Market: HPQ is good value based on its PE Ratio (7.9x) compared to the US market (17.7x).


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 17 analysts?

-9.5%

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 (-9.5% per year).

Earnings vs Market: HPQ's earnings are forecast to decline over the next 3 years (-9.5% 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 (-0.9% per year).

High Growth Revenue: HPQ's revenue is forecast to decline over the next 3 years (-0.9% 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?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPQ has high quality earnings.

Growing Profit Margin: HPQ's current net profit margins (6.6%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: HPQ's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: HPQ's earnings growth over the past year (58.8%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: HPQ earnings growth over the past year (58.8%) exceeded the Tech industry 48.6%.


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 (76.1%).

Interest Coverage: HPQ's interest payments on its debt are well covered by EBIT (26.5x coverage).


Balance Sheet


Dividend

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

2.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HPQ's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HPQ's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 low payout ratio (23.5%), 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 (25.6% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Enrique Lores (55 yo)

1.83yrs

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. He serves as Director of PayPal Holdings, Inc., since June 29, 2021. Mr. Lores served as the...


CEO Compensation Analysis

Compensation vs Market: Enrique's total compensation ($USD12.48M) is about average for companies of similar size in the US market ($USD11.36M).

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 ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: HPQ's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$31.798b
  • Shares outstanding: 1.15b
  • Website: https://www8.hp.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:55
End of Day Share Price2021/09/23 00:00
Earnings2021/07/31
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.