HP (HPQ) AI Stock Analysis

• Market Cap: $24.97B
• Dividend Yield: 4.33%
• Average Volume (3M): 9.11M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.16
• Revenue Growth: 3.11%
• EPS Growth: -3.54%
• Country: US
• Employees: 58,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.75
• Shares Outstanding: 934,701,840
• 10 Day Avg. Volume: 9,145,240
• 30 Day Avg. Volume: 9,111,863
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 7.34
• 1Y Price Target: $28.20
• Price Target Upside: 5.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 66 Neutral
• Price Target: $29.00 ▲(8.57% Upside)

HP's overall stock score is driven by a strong earnings call and attractive valuation, which are offset by financial performance concerns, particularly the negative equity on the balance sheet. Technical analysis presents a mixed picture, with some short-term weakness but potential medium-term strength. The company's strategic initiatives and cost-saving measures provide a positive outlook despite challenges in the print segment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing HP's competitive position and long-term viability.

Operational Efficiency

Achieving significant cost savings enhances HP's profitability and operational efficiency, providing a buffer against market fluctuations and competitive pressures.

Sustainability Initiatives

Strong sustainability initiatives align with global trends and consumer preferences, potentially boosting brand reputation and customer loyalty.

Negative Factors

Negative Equity

Negative equity indicates financial risk and reliance on debt, which could limit HP's ability to invest in growth and respond to economic changes.

Decline in Print Revenue

A decline in print revenue suggests challenges in a key segment, potentially impacting overall profitability and necessitating strategic adjustments.

Aggressive Pricing Environment

Competitive pricing pressures in the print segment could erode margins, requiring HP to enhance cost management and product differentiation strategies.

HP Business Overview & Revenue Model

Company Description

HP Inc. (HPQ) is a global technology company known for its innovative hardware, software, and services solutions. The company operates primarily in two main sectors: Personal Systems and Printing. HP's core products include laptops, desktops, workstations, printers, and 3D printing solutions, along with a range of related services and accessories. With a focus on sustainability and technology advancements, HP aims to enhance the customer experience across various industries, from individual consumers to large enterprises.

How the Company Makes Money

HP generates revenue through multiple streams, primarily from the sale of Personal Systems and Printing products. In the Personal Systems segment, HP earns money from selling laptops, desktops, and accessories, benefiting from both direct sales and partnerships with retailers and distributors. The Printing segment contributes significantly to revenue through the sale of printers, ink, and toner cartridges, with a recurring revenue model based on consumables. Additionally, HP has ventured into 3D printing and related services, expanding its market reach. The company also engages in strategic partnerships and collaborations, enhancing its product offerings and market penetration, which further supports its revenue growth.

HP Financial Statement Overview

Summary

HP's financial performance is mixed. While the income statement shows stable revenue and profitability margins, the balance sheet reveals financial instability due to negative equity. Cash flow remains strong, but recent declines in free cash flow could affect future flexibility.

Income Statement

HP's income statement shows moderate performance. The TTM revenue of $54.3 billion reflects a slight growth of 1.38% compared to the previous year. Gross profit and net profit margins are stable with gross profit margin at 21.15% and net profit margin at 4.63%. However, both EBIT and EBITDA margins have slightly decreased over the TTM, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet reveals some financial instability due to negative stockholders' equity, which indicates a leveraged position. The debt-to-equity ratio is not meaningful due to the negative equity. With an equity ratio of -3.29%, HP's reliance on debt could pose a risk, although its total debt has reduced slightly over the recent periods.

Cash Flow

HP's cash flow statement is a positive aspect, with a robust operating cash flow of $3.46 billion in the TTM and a healthy free cash flow of $2.66 billion. The free cash flow to net income ratio is 1.06, highlighting strong cash generation capabilities relative to net income. However, the free cash flow has declined by 15.77% from the previous period, which could affect future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.30B	53.56B	53.72B	62.91B	63.46B	56.64B
Gross Profit	11.49B	11.82B	11.51B	12.26B	13.41B	10.42B
EBITDA	4.30B	4.72B	4.47B	5.46B	8.61B	4.24B
Net Income	2.52B	2.77B	3.26B	3.13B	6.54B	2.81B
Balance Sheet
Total Assets	38.80B	39.91B	37.00B	38.49B	38.60B	34.68B
Cash, Cash Equivalents and Short-Term Investments	2.73B	3.24B	3.11B	3.15B	4.30B	5.14B
Total Debt	10.74B	10.90B	10.74B	12.29B	8.78B	7.40B
Total Liabilities	40.08B	41.23B	38.07B	41.52B	40.25B	36.91B
Stockholders Equity	-1.28B	-1.32B	-1.07B	-3.02B	-1.64B	-2.23B
Cash Flow
Free Cash Flow	2.66B	3.16B	2.96B	3.67B	5.83B	3.74B
Operating Cash Flow	3.46B	3.75B	3.57B	4.46B	6.41B	4.32B
Investing Cash Flow	-1.50B	-646.00M	-590.00M	-3.55B	-1.01B	-1.02B
Financing Cash Flow	-1.74B	-3.08B	-2.89B	-2.07B	-5.96B	-2.97B

HP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPQ, the sentiment is Negative. The current price of 26.71 is below the 20-day moving average (MA) of 28.16, below the 50-day MA of 26.75, and below the 200-day MA of 27.77, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HPQ.

HP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	74 Outperform	23.93B	21.18	120.10%	1.74%	3.45%	9.69%
WDC	74 Outperform	37.08B	22.15	33.59%	0.19%	2.12%	―
STX	72 Outperform	46.32B	32.13	-324.28%	1.31%	38.86%	337.22%
SMCI	68 Neutral	27.23B	27.61	16.64%	―	47.04%	-17.89%
HPQ	66 Neutral	$24.97B	9.77	84.33%	4.33%	3.11%	-3.54%
DELL	65 Neutral	87.92B	19.23	-173.32%	1.48%	10.68%	24.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HP Corporate Events

HP Announces New Chief Accounting Officer Appointment

On June 18, 2025, HP Inc. announced that Stephanie Liebman will be leaving her position as Global Controller to pursue an outside opportunity, effective September 12, 2025. Manpreet S. Grewal has been appointed as the new Chief Accounting Officer and Global Controller, effective July 14, 2025. Mr. Grewal brings experience from his previous roles at United States Steel Corporation and Covanta. Additionally, HP’s Board of Directors has adopted amendments to the company’s bylaws to align with recent changes in the General Corporation Law of the State of Delaware, affecting the inspection rights of stockholders and directors.