NYSE:HPQ

Stock Analysis Report

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.

Snowflake

Fundamentals

Established dividend payer and fair value.


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


Market Performance


7 Day Return

0.5%

HPQ

3.6%

US Tech

0.4%

US Market


1 Year Return

-25.8%

HPQ

12.3%

US Tech

11.4%

US Market

Return vs Industry: HPQ underperformed the US Tech industry which returned 7.3% over the past year.

Return vs Market: HPQ underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HPQIndustryMarket
7 Day0.5%3.6%0.4%
30 Day-7.6%10.4%0.3%
90 Day-19.7%16.1%-1.2%
1 Year-23.3%-25.8%14.2%12.3%13.9%11.4%
3 Year34.2%23.1%109.1%92.8%47.2%37.6%
5 Year23.4%-51.6%123.3%100.5%62.4%44.6%

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?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPQ ($17.12) is trading below our estimate of fair value ($21.71)

Significantly Below Fair Value: HPQ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HPQ is good value based on its PE Ratio (6.3x) compared to the Tech industry average (20.2x).

PE vs Market: HPQ is good value based on its PE Ratio (6.3x) compared to the US market (17.8x).


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 US Tech industry average.


Next Steps

  • Explore potentially undervalued companies in the Tech industry.

Future Growth

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

-12.8%

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 (-12.8% per year).

Earnings vs Market: HPQ's earnings are forecast to decline over the next 3 years (-12.8% 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 (-0.6% per year).

High Growth Revenue: HPQ's revenue is forecast to decline over the next 3 years (-0.6% 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?

1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HPQ's earnings have grown by 1.9% 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 (-7.1%) over the past year, making it difficult to compare to the Tech industry average (64%).


Return on Equity

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


Return on Assets

ROA vs Industry: HPQ has a higher Return on Assets than the Tech industry average last year.


Return on Capital Employed

ROCE Improving: HPQ has significantly improved its Return on Capital Employed over the past 3 years.


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 (99.5%).

Interest Coverage: HPQ's interest payments on its debt are well covered by EBIT (31.5x coverage).


Balance Sheet

Inventory Level: HPQ has a high level of physical assets or inventory.

Debt Coverage by Assets: HPQ has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

4.12%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HPQ's dividend (4.12%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HPQ's dividend (4.12%) is in the top 25% of dividend payers in the US market (3.68%)

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 (22.7%), 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 (32.3% payout ratio).


Next Steps

Management

What is the CEO of HP's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Dion Weisler (52yo)

3.9yrs

Tenure

US$19,215,534

Compensation

Mr. Dion J. Weisler has been the Chief Executive Officer and President of HP Inc. (also known as, Hewlett-Packard Company) since November 1, 2015. Mr. Weisler served as an Executive Vice President of Print ...


CEO Compensation Analysis

Compensation vs. Market: Dion's total compensation ($USD19.22M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Dion's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.9yrs

Average Tenure

54yo

Average Age

Experienced Management: HPQ's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: HPQ's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$49,71527 Jun 19
Claire Bramley
EntityIndividual
Shares2,389
Max PriceUS$20.81
SellUS$410,60220 Jun 19
Kim Rivera
EntityIndividual
Role
Chief Legal Officer
President of Strategy & Business Management and Chief Legal Officer
Shares20,000
Max PriceUS$20.53
SellUS$316,38012 Jun 19
Claire Bramley
EntityIndividual
Shares15,819
Max PriceUS$20.00
SellUS$560,00012 Jun 19
Shumeet Banerji
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares28,000
Max PriceUS$20.00
SellUS$641,57417 Dec 18
Alex Cho
EntityIndividual
Shares28,774
Max PriceUS$22.30
SellUS$91,85505 Dec 18
Alex Cho
EntityIndividual
Shares3,879
Max PriceUS$23.68

Ownership Breakdown


Management Team

  • Tracy Keogh (58yo)

    Chief Human Resources Officer

    • Tenure: 3.9yrs
    • Compensation: US$5.19m
  • Shane Wall (55yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Bernard Meric

    Vice President of Europe and Managing Director of Europe

    • Tenure: 0yrs
  • Karen Kahn

    Chief Communications Officer & Head of Communications

    • Tenure: 1.2yrs
  • Enrique Lores (53yo)

    President of Imaging

    • Tenure: 3.9yrs
    • Compensation: US$7.00m
  • Kim Rivera (50yo)

    President of Strategy & Business Management and Chief Legal Officer

    • Tenure: 3.9yrs
    • Compensation: US$5.28m
  • Dion Weisler (52yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$19.22m
  • Steve Fieler (57yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: US$3.75m
  • Vikrant Batra

    Chief Marketing Officer

    • Tenure: 1.2yrs
  • Beth Howe

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Robert Bennett (61yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$327.26k
  • Stacey Mobley (74yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$308.27k
  • Chip Bergh (61yo)

    Independent Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$543.10k
  • Stephanie Burns (64yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$328.26k
  • Aida Alvarez (69yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$308.27k
  • Subra Suresh (62yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$310.27k
  • Mary Citrino (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$340.59k
  • Shumeet Banerji (60yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$323.26k
  • Stacy Brown-Philpot (43yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$312.27k
  • Dion Weisler (52yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$19.22m

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$25.370b
  • Shares outstanding: 1.48b
  • 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
HPQSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
HPQNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HPQ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
7HPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0J2ELSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
HPQSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 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
HPQ.WINYSE (New York Stock Exchange)COM USD0.01USUSDOct 2015
HPQSWX (SIX Swiss Exchange)COM USD0.01CHCHFOct 2015

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 Analysis2019/10/23 23:38
End of Day Share Price2019/10/23 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.