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HP Inc HPQ

Morningstar Rating
$37.34 +0.61 (1.66%)
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Company Report

HP Is an Efficient PC and Printer Powerhouse

HP is a legacy technology titan 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 has now receded.

Price vs Fair Value

HPQ is trading at a 227% premium.
Price
$36.73
Fair Value
$78.00
Uncertainty
Medium
1-Star Price
$42.59
5-Star Price
$79.50
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.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$36.73
Day Range
$36.4137.35
52-Week Range
$25.2239.52
Bid/Ask
$37.39 / $37.44
Market Cap
$36.54 Bil
Volume/Avg
5.7 Mil / 8.0 Mil

Key Statistics

Price/Earnings (Normalized)
10.83
Price/Sales
0.69
Dividend Yield (Trailing)
2.97%
Dividend Yield (Forward)
3.00%
Total Yield
4.64%

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 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
58,000

Competitors

Valuation

Metric
HPQ
DELL
00992
Price/Earnings (Normalized)
10.8319.6816.16
Price/Book Value
3.11
Price/Sales
0.691.140.32
Price/Cash Flow
8.6512.918.42
Price/Earnings
HPQ
DELL
00992

Financial Strength

Metric
HPQ
DELL
00992
Quick Ratio
0.380.400.56
Current Ratio
0.750.730.87
Interest Coverage
6.933.242.61
Quick Ratio
HPQ
DELL
00992

Profitability

Metric
HPQ
DELL
00992
Return on Assets (Normalized)
9.22%6.27%3.03%
Return on Equity (Normalized)
20.85%
Return on Invested Capital (Normalized)
41.27%25.93%16.60%
Return on Assets
HPQ
DELL
00992
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