| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
HPQ Stock 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.
Rewards
Trading at good value vs. peer average Price-To-Earnings ratio
Trading at good value vs. industry average Price-To-Earnings ratio
Analysts in good agreement that stock price will rise by 21.1%
Risk Analysis
Earnings are forecast to decline by an average of 12.3% per year for the next 3 years
+ 1 more risk
HP Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$24.92 |
| 52 Week High | US$41.47 |
| 52 Week Low | US$24.74 |
| Beta | 0.97 |
| 1 Month Change | -9.84% |
| 3 Month Change | -21.81% |
| 1 Year Change | -11.22% |
| 3 Year Change | 49.76% |
| 5 Year Change | 21.09% |
| Change since IPO | 303.77% |
Recent News & Updates
HP Inc.: Better Years Ahead
Summary We believe the long-term PC market growth outlook to be supported by the increasing time spent online by consumers and globalization for commercial PCs. We projected HP Inc.’s growth by multiplying our PC market growth forecast and HP’s personal systems segment factor of 1.02x to reach $43,173 mln in revenue in 2025. For its printing segment, we projected HP’s 4-year forward growth of 4.76% by multiplying the market CAGR (4.55%) and the factor of 1.05x. Although HP Inc. (HPQ) had the largest share in the Hardcopy Peripherals market, its 5-year average revenue growth in the printing segment (2.58%) is lower compared to the personal systems (PC) segment (7.80%). Hence, we analyzed the growth drivers for each segment to determine the reason for the higher growth in its PC segment, then projected HP’s revenue. HP, Khaveen Investments Drivers Across Commercial & Personal PCs Gartner, Khaveen Investments As observed from the PC market share chart from our previous analysis of Apple (AAPL), since Q3 2018, HP had the second largest market share, whereas Lenovo (LNVGY) had the largest market share. HP's market share declined slightly from Q3 2017 (13.77%) to Q2 2022 (13%). However, the company’s personal systems segment had average 5-year revenue growth of 7.80%. We then analyzed the drivers for the segment growth based on commercial and personal usage. The average 11-year growth for the PC market is -1.93% based on PC shipments. The growth in the shipments for all companies is higher than the market except for Acer and Others (none top-6 companies) with an average growth of -4.43% and -10.30% respectively. Commercially, PCs are needed to connect with stakeholders. The increasing spending on hybrid work solutions as mentioned by the company further boosted demand for commercial PCs. Much of this innovation is being driven by the rise of the hybrid office. Our devices are what's enabling people to connect, create and collaborate across multiple locations and do it securely. - Enrique Lores, President & Chief Executive Officer kof, Khaveen Investments Hence, we believe that there is an increasing need for PCs to facilitate business connectivity due to globalization. As shown, from 2008 to 2019 the globalization index from all aspects had increased indicating increasing globalization. Therefore, we believe increasing globalization is important in driving the growth of PCs. Furthermore, a personal PC is used for: multimedia entertainment, playing PC games, and accessing the Internet such as social media and news. We believe the increased time spent on online activities can be measured by the daily time spent on social networking, which increased from 90 minutes per day in 2012 to 147 minutes per day in 2022. We believe the rise of the internet should continue to drive demand for PCs. Continued Internet Growth Driving PCs ITU, Worldometers, Khaveen Investments Based on the chart, Internet penetration and PC penetration are positively correlated. The Internet penetration rate increased from 22.8% in 2008 to 53.4% in 2019, and we believe this drove PC penetration. As shown, the PC penetration had increased from 33.20% in 2008 to 47.10% in 2019. We believe that the advancement of Wi-Fi drives better connectivity which supporting higher internet penetration rates. Trendforce, Khaveen Investments As shown from the chart we obtained from our previous analysis of Qualcomm (QCOM), there is a shift of Wi-Fi 4 and earlier to Wi-Fi 6, where the Wi-Fi 6 share of devices had increased from 0% in 2018 to 28% in 2020, whereas the Wi-Fi 4 and earlier share of devices decreased from 31% in 2018 to 0% in 2020. Overall, the newer version of Wi-Fi technology replaces the older version, showing the advancement of the internet. As mentioned by Statista: In developing countries, the PC penetration rate is lower with around a third of households having a computer. In contrast, the share of households with a personal computer in developed countries was closer to 80 percent. Hence, we believe the emerging markets would be the largest driver of PC growth due to the higher room for PC penetration growth. We then divide the PC penetration by Internet penetration to determine the factor of Internet penetration on PC penetration over time. As shown below, it decreased from 1.46x in 2008 to 0.88x in 2019. We believe this indicates that a higher increase in Internet penetration would result in a smaller increase in PC penetration in the future with the reason being that many other devices have been made available to connect to the Internet such as smartphones, tablets, televisions and smartwatches. PC Market 2023F 2024F 2025F Users ('mln') 5,300 5,701 6,133 Growth % ('a') 6.0% 7.57% 7.57% World Population 8,031 8,109 8,184 Internet Penetration 66.0% 70.3% 74.9% Growth % 5.0% 6.5% 6.6% PC Penetration/ Internet Penetration ('b') 0.74 0.70 0.67 Growth % -4.5% -4.5% -4.5% PC Market Growth ('c') 4.4% 5.3% 5.1% * c = a x b Source: ITU, Worldometers, Khaveen Investments To obtain the projected PC market growth, we multiplied the projected Internet users’ growth and the PC penetration/Internet penetration ratio. Given the ratio had been declining by an average of 4.5%, we continued to account for this decline moving forward in our projections. Personal Systems Revenue Projection 11-year average Factor 2022F 2023F 2024F 2025F Personal Systems ($ mln) 37,275 38,947 41,053 43,173 Growth 0.03% 1.02x -14.03% 4.49% 5.41% 5.17% Market Growth -1.93%
HP (NYSE:HPQ) Is Reinvesting To Multiply In Value
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...
Shareholder Returns
| HPQ | US Tech | US Market | |
|---|---|---|---|
| 7D | -1.7% | -8.0% | -2.5% |
| 1Y | -11.2% | -4.0% | -23.2% |
Return vs Industry: HPQ underperformed the US Tech industry which returned -4.1% over the past year.
Return vs Market: HPQ exceeded the US Market which returned -23.2% over the past year.
Price Volatility
| HPQ volatility | |
|---|---|
| HPQ Average Weekly Movement | 5.3% |
| Tech Industry Average Movement | 7.6% |
| Market Average Movement | 6.8% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: HPQ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HPQ's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1939 | 51,000 | Enrique Lores | https://www.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 peripherals, software, support, and services.
HP Inc. Fundamentals Summary
| HPQ fundamental statistics | |
|---|---|
| Market Cap | US$25.07b |
| Earnings (TTM) | US$6.30b |
| Revenue (TTM) | US$64.86b |
4.0x
P/E Ratio0.4x
P/S RatioIs HPQ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HPQ income statement (TTM) | |
|---|---|
| Revenue | US$64.86b |
| Cost of Revenue | US$51.97b |
| Gross Profit | US$12.88b |
| Other Expenses | US$6.58b |
| Earnings | US$6.30b |
Last Reported Earnings
Jul 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.27 |
| Gross Margin | 19.86% |
| Net Profit Margin | 9.72% |
| Debt/Equity Ratio | -476.7% |
How did HPQ perform over the long term?
See historical performance and comparison