HP Inc Stock Analysis, Valuation (NYSE:HPQ)

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$22.14 $0.16 (0.72%) HPQ stock closing price May 18, 2018 (Closing)
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HP Inc
Updated on : May 18, 2018
previous close
HPQ 22.1 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Mini
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-14.6%
Operating Profit
Operating Margin:
6.8%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$996M
Net Income:
$1.94B
Dividend Yield
HPQ dividend yield:
2.39%
PROS      CONS
ROIC
PE Valuation
PS Valuation
Long Term Growth
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HPQ PS :
0.7
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
49.6%
Free Cash Flow Margin:
6.7%
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HP Inc Stock Analysis

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Watch the robo advisor video of HP Inc stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for HPQ stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

HP Inc Stock Rating 3.5/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for HPQ stock analysis. HP Inc valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at HP Inc stock rating which is indicative of the company's financial performance.

Should you buy HPQ stock?

  • HPQ stock is trading at an earnings multiple of 12.7 which is better than the industry average of 25.1.
  • The lower PS ratio 0.7 for HPQ stock versus Computer-Mini industry average of 2.9 is a positive for the company.
  • HP Inc has an attractive ROIC (Return on Invested Capital) of 49.6%

Should you sell HPQ stock?

  • Revenue declined at a CAGR of -14.6% over the last 5 years.
  • Cash flow from operations is low at 0.5 times the net income.

Comments on this video and HP Inc stock

Amigobulls HP Inc stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of HPQ stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

HP Inc revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about HPQ stock.