| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$27.98 |
| 52 Week High | US$17.25 |
| 52 Week Low | US$36.00 |
| Beta | 1.01 |
| 1 Month Change | -3.18% |
| 3 Month Change | -5.82% |
| 1 Year Change | 54.16% |
| 3 Year Change | 9.17% |
| 5 Year Change | 81.81% |
| Change since IPO | 353.35% |
Recent News & Updates
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.
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
| HPQ | US Tech | US Market | |
|---|---|---|---|
| 7D | -0.2% | -2.5% | -0.5% |
| 1Y | 54.2% | 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
| HPQ volatility | |
|---|---|
| HPQ Beta | 1.01 |
| Industry Beta | 1.2 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1939 | 53,000 | Enrique Lores | https://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
| HPQ fundamental statistics | |
|---|---|
| Market Cap | US$31.80b |
| Earnings (TTM) | US$4.07b |
| Revenue (TTM) | US$62.07b |
7.9x
P/E Ratio0.5x
P/S RatioIs HPQ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HPQ income statement (TTM) | |
|---|---|
| Revenue | US$62.07b |
| Cost of Revenue | US$49.24b |
| Gross Profit | US$12.83b |
| Expenses | US$8.76b |
| Earnings | US$4.07b |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.22 |
| Gross Margin | 20.67% |
| Net Profit Margin | 6.56% |
| Debt/Equity Ratio | -181.3% |
How did HPQ perform over the long term?
See historical performance and comparisonDividends
2.8%
Current Dividend Yield23%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 22:55 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2020/10/31 |
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.