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HP Inc HPQ

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Stock XNYS Rating as of
$29.55 −0.65 (2.14%)
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As of Cboe BZX Real-Time Price Open

Company Report

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HP Is Offsetting Memory Price Hikes With Price Hikes of Its Own

Eric Compton

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which eventually receded.

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Price vs Fair Value

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HPQ is trading within a range we consider fairly valued.
Price
$30.20
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

HP generates steady free cash flow and returns this cash to shareholders via dividends and buybacks. High cash flow and low future expectations are not a bad combination.

Bears

HP’s core industries, PCs and printers, are low-growth and low-margin. It is hard to get excited about this business mix or know where future upside could come from.

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Trading Information

Previous Close Price
$30.20
Day Range
$29.18–30.27
52-Week Range
$17.57–36.22
Bid/Ask
$29.51 / $29.55
Shares Outstanding
901.79M
Market Cap
$26.41B
Volume/Avg
1M / 15M

Key Statistics

Price/Earnings (Normalized)
8.80
Price/Sales
0.48
Dividend Yield (Trailing)
3.97%
Dividend Yield (Forward)
3.97%
Dividend Payment Schedule
Jan, Apr, Jul, Oct
Total Yield
8.47%

Company Profile

HP is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market, but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one-third of sales coming from the US. HP completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.
Sector
Technology
Industry
Computer Hardware
Stock Style Box
Mid Value
Total Number of Employees
55,000
Website
https://www.hp.com

Competitors

Valuation

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Metric
HPQ
DELL
00992
Price/Earnings (Normalized)
 8.8031.8930.12
Price/Book Value
 ——6.11
Price/Sales
 0.482.570.75
Price/Cash Flow
 6.1325.7617.02
Price/Earnings
HPQ
DELL
00992

Financial Strength

Metric
HPQ
DELL
00992
Quick Ratio
 0.440.560.62
Current Ratio
 0.790.960.95
Interest Coverage
 6.8424.384.74
Quick Ratio
HPQ
DELL
00992

Profitability

Metric
HPQ
DELL
00992
Return on Assets (Normalized)
 7.54%11.68%4.07%
Return on Equity (Normalized)
 ——27.04%
Return on Invested Capital (Normalized)
 35.05%43.17%19.67%
Return on Assets
HPQ
DELL
00992

Computer Hardware Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Dell Technologies Inc Ordinary Shares - Class C
DELL
LOCK|!&?<k?#>LOCK|&Z$373B
 Arista Networks Inc
ANET
LOCK|syKb&jr>LOCK|V@p$273B
 SanDisk Corp Ordinary Shares
SNDK
LOCK|%$&R%?tLOCK|!&$229B
 Seagate Technology Holdings PLC
STX
LOCK|Y&Qc<dLOCK|n&$178B
 Western Digital Corp
WDC
LOCK|^xDpG%TLOCK|Dmx$149B
 Lenovo Group Ltd ADR
LNVGY
LOCK|H<#jV@^LOCK|@z$52B
 Lenovo Group Ltd
LNVGF
—LOCK|k@?$52B
 Everpure Inc Class A
P
—LOCK|sSM$51B
 Logitech International SA
LOGI
LOCK|v$$yv<LOCK|S^$14B

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