Skip to Content

HP Inc HPQ

Morningstar Rating
$28.72 −0.11 (0.38%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

HP Earnings: Recovery Outlook Looks Softer After Weak Start to the Year

We lower our fair value estimate for no-moat HP to $27 from $30 per share as we cut our short-term revenue estimates. HP’s end demand still looks soft, and we no longer model a significant recovery in fiscal 2024. PC sales continue to look challenged after the pandemic-driven demand surge of 2021, and we believe printing still looks like a market in secular decline. We expect HP to return to stable, low growth after fiscal 2024, but we no longer model a more meaningful recovery from these levels. HP’s profitability and cash flow have been positive of late, but we expect these to revert to lower levels in the longer term. We see shares as fairly valued.

Price vs Fair Value

HPQ is trading at a 4% discount.
Price
$28.83
Fair Value
$35.00
Uncertainty
High
1-Star Price
$31.60
5-Star Price
$57.00
Economic Moat
Hqw
Capital Allocation
Vlccwvvb

Bulls Say, Bears Say

Bulls

We like HP’s shareholder return program. HP generates heady annual free cash flow and sends the majority of it back to shareholders.

Bears

HP plays in two commoditylike industries that whittle down accounting and economic profits.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if HPQ is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$28.83
Day Range
$28.6829.09
52-Week Range
$25.2233.90
Bid/Ask
$27.68 / $27.73
Market Cap
$28.10 Bil
Volume/Avg
10.8 Mil / 8.5 Mil

Key Statistics

Price/Earnings (Normalized)
8.68
Price/Sales
0.53
Dividend Yield (Trailing)
3.69%
Dividend Yield (Forward)
3.82%
Total Yield
4.06%

Company Profile

HP (formerly Hewlett-Packard) 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 U.S. It 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
58,000

Competitors

Valuation

Metric
HPQ
00992
XRX
Price/Earnings (Normalized)
8.6812.3610.31
Price/Book Value
2.150.91
Price/Sales
0.530.250.41
Price/Cash Flow
7.126.866.45
Price/Earnings
HPQ
00992
XRX

Financial Strength

Metric
HPQ
00992
XRX
Quick Ratio
0.390.580.83
Current Ratio
0.730.871.14
Interest Coverage
6.363.460.35
Quick Ratio
HPQ
00992
XRX

Profitability

Metric
HPQ
00992
XRX
Return on Assets (Normalized)
8.87%3.00%2.68%
Return on Equity (Normalized)
19.65%9.25%
Return on Invested Capital (Normalized)
40.81%13.57%4.90%
Return on Assets
HPQ
00992
XRX
See how this stock stacks up to its competitors with Morningstar Investor

Computer Hardware Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ANET
Arista Networks IncZcf$85.0 Bil
DELL
Dell Technologies Inc Ordinary Shares - Class CXtllq$65.9 Bil
SMCI
Super Micro Computer IncJgjxdnp$45.7 Bil
CAJFF
Canon IncMczp$28.7 Bil
CAJPY
Canon Inc ADRZqtg$28.5 Bil
STX
Seagate Technology Holdings PLCGycb$19.2 Bil
WDC
Western Digital CorpRylq$18.7 Bil
NTAP
NetApp IncCsqh$18.1 Bil
LOGI
Logitech International SAFyv$13.8 Bil

Sponsor Center