HP (HPQ)
Information Technology · $29.0B market cap · SEC CIK 0000047217
fundamentals score out of 100
Next reports on Nov 23, 2026, after the close, with analysts expecting $0.76 in earnings per share.
The case for HPQ
- Cheap on earnings at 11.8×, well under the market's usual 20×.
- Free cash flow of 9.6% of its market value a year: a lot of cash for the price.
- Revenue growing 8.1% year over year.
- Pays a 3.8% dividend while you wait.
- Price/sales of 0.5× is lower than 100% of Information Technology companies.
The case against
- Revenue has shrunk 0.5% a year over five years.
- Owes more than it owns: shareholder equity is -$766M, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Current liabilities exceed current assets (ratio 0.79).
- Net margin of 4% is thinner than 92% of Information Technology companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 91 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 20 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 28 |
| Momentumhow the price has behaved lately | 80 |
| Stabilityhow violently it moves, what it owes and what it pays you | 34 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 11.8× |
|---|---|
| Price / book | n/m (negative equity) |
| Price / sales | 0.5× |
| Revenue growth (YoY) | +8.1% |
| EPS growth (YoY) | -4.4% |
| Gross margin | 20% |
| Operating margin | 5% |
| Net margin | 4% |
| Return on assets | 5.7% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 0.79 |
| Dividend yield | 3.85% |
| Beta | 1.21 |
| 52-week range | $17.56 – $36.23 |
| Position in that range | 78% of the way up |
| 3-month return | +40.2% |
| 1-year return | +17.0% |
Five years of financials, as filed
Pulled from HP's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $55.3B | $53.6B | $53.7B | $62.9B | $63.5B |
| Gross profit | $11.4B | $11.8B | $11.5B | $12.3B | — |
| Operating income | $3.2B | $3.8B | $3.5B | $4.6B | $5.4B |
| Net income | $2.5B | $2.8B | $3.3B | $3.1B | $6.5B |
| Operating cash flow | $3.7B | $3.7B | $3.6B | $4.5B | $6.4B |
| Capital expenditure | $897M | $592M | $593M | $765M | $582M |
| Total assets | $41.5B | $38.9B | $35.8B | $36.1B | $38.9B |
| Shareholder equity | -$766M | -$1.1B | -$1.6B | -$3.8B | -$2.3B |
| Cash | $3.2B | $2.9B | $2.3B | $1.4B | $3.4B |
| Long-term debt | $8.8B | $8.3B | $9.3B | $10.3B | $6.4B |
| Free cash flow | $2.8B | $3.2B | $3.0B | $3.7B | $5.8B |
| Gross margin | 20.6% | 22.1% | 21.4% | 19.5% | — |
| Operating margin | 5.7% | 7.1% | 6.4% | 7.2% | 8.4% |
| Net margin | 4.6% | 5.2% | 6.1% | 5.0% | 10.3% |
| Diluted shares | 953M | 989M | 1.0B | 1.1B | 1.2B |
Share count is down 21.9% over 4 years. Buybacks have been shrinking the pie.
What HP says it does
Overview HP is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming and other related technologies. We believe artificial intelligence ("AI") is playing a critical role in the transformation of how people live and work, and customers are beginning to recognize the benefits in security, speed and cost. Our high-performing product portfolio includes HP’s new line of AI PCs and workstations built with the computing power to enable local AI processing for enhanced performance and features as well as intelligent print features incorporated into our home, office and graphics solutions. Our broad range of security capabilities are designed to protect an increasingly…
Risk factors HPQ lists in its 10-K
- If we cannot successfully execute our strategy and continue to develop, manufacture and market innovative products,
- services and solutions, our business and financial performance may suffer
- We expect the proliferation of AI to have a significant impact on our industry and the markets in which we compete, and the development and use of AI presents competitive, reputational, and liability risks
- We are heavily dependent on third-party suppliers and supply chain issues have adversely affected, and could adversely affect in the future, our financial results
- Working conditions, human rights and materials
- Our business and financial performance could suffer if we do not manage the risks associated with our services businesses properly
- We operate in an intensely competitive industry and competitive pressures could harm our business and financial performance
- If we cannot continue to produce high-quality and secure products and services, our reputation, business and financial performance may suffer
- Third-party claims of IP infringement are commonplace in our industry and may limit or disrupt our ability to sell our products and services
- Our operating results have historically varied and may not be indicative of future results
- If we fail to manage the distribution of our products and services properly, our business and financial performance could suffer
- Our uneven sales cycle makes planning and inventory management difficult and future financial results less predictable
- In order to be successful, we must attract, retain, train, motivate, develop and transition key employees, and failure to do so could seriously harm us
- Our financial performance may suffer if we cannot develop, obtain, license or enforce the intellectual property rights on which our businesses depend