HPQ
HP Inc.
$28.96
▲ 2.8%Updated Aug 7, 11:30 AM ET
HPQ at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 56/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 2.8% over the last 12 months
Market Cap
$20.06B
P/E
10.39x
Forward P/E (est.)
9.94x
ROE
16.9%
Revenue Growth
5.7%
EPS Growth
4.6%
Profit Margin
4.5%
FCF Yield
16.9%
Debt / Equity
0.32x
ROIC
26.0%
Interest Coverage
5.6x
Current Ratio
0.79x
Dividend Yield
4.9%
Implied Growth (rev. DCF)
-4.4%
Rating Score
56/100
HP Inc. (HPQ) is a large-cap company in the Technology Hardware, Storage & Peripherals industry, part of the Information Technology sector of the S&P 500, with a market value around $20.06B.
In its latest reported year it generated about $55.30B in revenue and $2.53B in net profit.
Our model rates HPQ Neutral (56/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
6.4% average over the last 3 years
±0.7 pts around 6.8% across 10 years
grew in 5 of the last 9 year-over-year periods
positive in 10 of 10 years
26.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HPQ's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HPQ trades near $28.96, above its 50-day average ($22.93) and 200-day average ($22.69). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 23 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. HPQ's is $0.92 (~3.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month HPQ found buyers near $21.67 (support) and sellers near $26.71 (resistance); its 52-week range is $17.56–$29.65. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
-3.4%
Revenue moved from $48.24B in 2016 to $55.30B in 2025, a 1.5% compound annual growth rate. The most recent year grew a steady 5.7% year over year. Slower, mature growth is common for established businesses.
Gross Margin
20.6%
Operating Margin
5.7%
Net Margin
4.6%
ROE
16.9%
HP Inc. keeps about 4.5% of each sales dollar as net profit, with a 20.6% gross margin and 5.7% operating margin. Return on equity is 16.9% and return on invested capital about 26.0%. Thin margins leave less cushion if costs rise.
Total Debt
$9.72B
Net Debt
$6.02B
Net Debt / EBITDA
1.9x
Debt / Equity
0.32x
Leverage: debt-to-equity is 0.3x, and operating profit covers interest about 5.6x, with a current ratio of 0.8x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $9.72B of total debt against $3.70B of cash.
Operating CF
$3.70B
Free Cash Flow
$2.80B
FCF Margin
5.1%
In the latest year HP Inc. produced about $3.70B of operating cash flow and $2.80B of free cash flow after capital spending. That is a free-cash-flow yield of about 16.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
4.9%
Per share (latest FY)
$1.16
Total paid (latest FY)
$1.09B
History on record
10 years
dividend uses 39% of free cash flow
43% of net income paid out
total dividends increased 2 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
10.39x
P/S
0.4x
P/B
1.07x
EV / EBITDA
—
HPQ trades at 10.4x trailing earnings (about 9.9x on estimated forward earnings), 0.4x sales, and 1.1x book value. Reverse-engineering today's price implies the market expects roughly -4.4% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$57.99
Current price
$28.96
Starting FCF (latest 10-K)
$2.80B
Growth, years 1–5
5.7%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where HPQ sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How HPQ stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), HPQ ranks #55 of 230 by our overall rating. It trades at a discount versus the sector on earnings (10.4x P/E vs. 38.9x median) with a lower return on equity (16.9% vs. 17.5%) and slower revenue growth (5.7% vs. 17.7%).
P/E vs sector
10.4x
median 38.9x
ROE vs sector
16.9%
median 17.5%
Growth vs sector
5.7%
median 17.7%
Sector rank
#55
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $28.96 today · expected CAGR 2% – 13%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $58.61B | $62.13B | $65.86B | $69.81B | $74.00B |
| Net income | $2.93B | $3.11B | $3.29B | $3.49B | $3.70B |
| EPS | $4.23 | $4.49 | $4.75 | $5.04 | $5.34 |
| Share price (low) | $25.39 | $26.91 | $28.53 | $30.24 | $32.06 |
| Share price (high) | $42.32 | $44.86 | $47.55 | $50.40 | $53.43 |
| CAGR (low–high) | -12% / 46% | -4% / 24% | -0% / 18% | 1% / 15% | 2% / 13% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for HPQ:
- Strong return on equity (16.9%) shows capital is put to work well.
- Healthy free-cash-flow yield (~16.9%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.3x) lowers risk.
- Pays a 4.9% dividend on top of any price gains.
The case against HPQ:
- Thin net margins (4.5%) leave little room for error.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Margin risk — thin profitability (4.5%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: HP Inc. is a large-cap information technology business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 10.4x earnings, which our model scores Neutral (56/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 26 Wall Street analysts covering HPQ recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-4 pts of buy ratings).
Latest SEC Filings
HPQ's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
HPQ — frequently asked questions
Is HPQ a good stock to buy?
We don't give buy or sell advice. Our model rates HP Inc. Neutral (56/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is HPQ's rating on The Stocks School?
HP Inc. currently scores 56/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does HPQ's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from HP Inc.'s SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for HPQ calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this HPQ analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell HPQ. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.