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HPQ

HP NYSE:HPQ Stock Report

Last Price

US$36.85

Market Cap

US$41.7b

7D

2.8%

1Y

15.9%

Updated

18 May, 2022

Data

Company Financials +
HPQ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends4/6

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.

HP Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HP
Historical stock prices
Current Share PriceUS$36.85
52 Week HighUS$41.47
52 Week LowUS$26.11
Beta0.93
1 Month Change-4.11%
3 Month Change1.18%
1 Year Change15.88%
3 Year Change91.93%
5 Year Change93.85%
Change since IPO497.06%

Recent News & Updates

May 17

Income Investors Should Consider HP Inc.

HPQ has substantially outperformed over the past year. The company has enjoyed a pandemic-driven earnings growth surge. The Wall Street consensus outlook is neutral and indicates that the shares are slightly overpriced. The market-implied outlook (calculated from options prices) is also neutral. Selling covered calls can provide high income.

May 17
HP Inc.'s (NYSE:HPQ) Intrinsic Value Is Potentially 48% Above Its Share Price

HP Inc.'s (NYSE:HPQ) Intrinsic Value Is Potentially 48% Above Its Share Price

In this article we are going to estimate the intrinsic value of HP Inc. ( NYSE:HPQ ) by taking the forecast future cash...

May 02
At US$36.63, Is It Time To Put HP Inc. (NYSE:HPQ) On Your Watch List?

At US$36.63, Is It Time To Put HP Inc. (NYSE:HPQ) On Your Watch List?

HP Inc. ( NYSE:HPQ ) received a lot of attention from a substantial price movement on the NYSE over the last few...

Shareholder Returns

HPQUS TechUS Market
7D2.8%-3.6%0.5%
1Y15.9%11.7%-11.5%

Return vs Industry: HPQ underperformed the US Tech industry which returned 18.1% over the past year.

Return vs Market: HPQ exceeded the US Market which returned -8.1% over the past year.

Price Volatility

Is HPQ's price volatile compared to industry and market?
HPQ volatility
HPQ Average Weekly Movement7.6%
Tech Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: HPQ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HPQ's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193951,000Enrique Loreshttps://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 Fundamentals Summary

How do HP's earnings and revenue compare to its market cap?
HPQ fundamental statistics
Market CapUS$41.73b
Earnings (TTM)US$6.52b
Revenue (TTM)US$64.87b

6.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HPQ income statement (TTM)
RevenueUS$64.87b
Cost of RevenueUS$51.39b
Gross ProfitUS$13.48b
Other ExpensesUS$6.96b
EarningsUS$6.52b

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

May 31, 2022

Earnings per share (EPS)6.19
Gross Margin20.78%
Net Profit Margin10.05%
Debt/Equity Ratio-304.4%

How did HPQ perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

15%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


34.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HPQ ($36.85) is trading below our estimate of fair value ($55.85)

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 (6x) compared to the US Tech industry average (15.8x).

PE vs Market: HPQ is good value based on its PE Ratio (6x) compared to the US market (16x).


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 16 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.4%

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 (-12.4% per year).

Earnings vs Market: HPQ's earnings are forecast to decline over the next 3 years (-12.4% per year).

High Growth Earnings: HPQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HPQ's revenue (0.7% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: HPQ's revenue (0.7% per year) is forecast to grow slower than 20% 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?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HPQ has a large one-off gain of $2.0B impacting its January 31 2022 financial results.

Growing Profit Margin: HPQ's current net profit margins (10.1%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: HPQ's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: HPQ's earnings growth over the past year (101.6%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: HPQ earnings growth over the past year (101.6%) exceeded the Tech industry 70.6%.


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 Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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 (99.4%).

Interest Coverage: HPQ's interest payments on its debt are well covered by EBIT (26.3x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HPQ's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: HPQ's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (3.97%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.8%), HPQ's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.7%), HPQ's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

Enrique Lores (55 yo)

2.5yrs

Tenure

US$20,733,806

Compensation

Mr. Enrique J. Lores has been President, Chief Executive Officer and Director of HP Inc since November 1, 2019. He serves as an Independent Director of PayPal Holdings, Inc., since June 29, 2021. Mr. Lores...


CEO Compensation Analysis

Compensation vs Market: Enrique's total compensation ($USD20.73M) is above average for companies of similar size in the US market ($USD13.27M).

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 considered experienced (2 years average tenure).


Board Members

Experienced Board: HPQ's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HPQ 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
  • Implied Market Cap: US$41.734b
  • Shares outstanding: 1.05b
  • Website: https://www.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 Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/01/31
Annual Earnings2021/10/31


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.