HP (HPQ) AI Stock Analysis

• Market Cap: $23.54B
• Dividend Yield: 5.59%
• Average Volume (3M): 8.31M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.12
• Revenue Growth: 2.08%
• EPS Growth: -12.41%
• Country: US
• Employees: 58,000
• Sector: Technology
• Sector Strength: 94
• Industry: Computer Hardware
• EPS (TTM): 0.71
• Shares Outstanding: 939,272,900
• 10 Day Avg. Volume: 7,089,137
• 30 Day Avg. Volume: 8,308,515
• PEG Ratio: -1.37
• Price to Book (P/B): 7.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.67
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: 1.64
• 1Y Price Target: $28.52
• Price Target Upside: 12.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 61 Neutral
• Price Target: $26.00 ▲(2.32%Upside)

The overall score reflects HP's solid revenue growth and strategic initiatives, tempered by financial stability concerns due to negative equity and declining cash flows. While valuation metrics are attractive, suggesting potential upside, the bearish technical indicators and challenges from tariff impacts and moderated future guidance weigh on the stock's outlook.

Positive Factors

Growth Drivers

The next-generation AI PC is set to be a new growth driver.

Operational Adjustments

Management anticipates offsetting the tariff impact by fulfilling North American demand outside of China, suggesting strategic adjustments to mitigate challenges.

Strategic Transformation

HPQ is undergoing a significant transformation by shifting to a subscription-based model, starting with its printing business and expanding across its product portfolio.

Negative Factors

Financial Performance

HP Inc. reported financial results below expectations due to a significant impact from tariffs, affecting their margins negatively.

Guidance and Outlook

The company's earnings guidance was lowered due to the ongoing tariff impacts, indicating potential future challenges.

Market Competition

Intense PC market competition may put pressure on its market share and profitability.

HP Business Overview & Revenue Model

Company Description

HP Inc. (HPQ) is a multinational information technology company headquartered in Palo Alto, California. The company operates in sectors including personal computing, printing, and imaging solutions. HP is renowned for its wide range of products such as laptops, desktops, printers, and related accessories, catering to both consumer and enterprise markets. The company is committed to innovation, sustainability, and providing technology solutions that empower individuals and businesses globally.

How the Company Makes Money

HP Inc. generates revenue primarily through the sale of personal systems and printing products. The company's Personal Systems segment includes desktops, notebooks, workstations, and other related services, contributing significantly to its income. HP's Printing segment encompasses the sale of printer hardware, supplies such as ink and toner, and managed print services. A key revenue stream for HP is the recurring purchase of printing supplies, which provides a stable and profitable income source. Additionally, HP partners with other technology firms and retailers to expand its market presence and distribution channels. The company also invests in innovation and sustainable practices to enhance its product offerings, thus driving sales and customer loyalty.

HP Financial Statement Overview

Summary

HP demonstrates stable revenue and profitability margins but faces challenges with its balance sheet due to negative equity. While cash flow remains strong, recent declines in free cash flow warrant cautious monitoring. The company's leverage and declining cash flow could be potential risks, but its robust cash generation supports ongoing operations.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.56B	53.72B	62.98B	63.49B	56.64B
Gross Profit	11.82B	11.51B	12.34B	13.42B	10.44B
EBITDA	4.71B	4.46B	5.45B	8.60B	4.26B
Net Income	2.77B	3.26B	3.13B	6.54B	2.81B
Balance Sheet
Total Assets	39.91B	37.00B	38.59B	38.61B	34.68B
Cash, Cash Equivalents and Short-Term Investments	3.25B	3.23B	3.15B	4.30B	4.86B
Total Debt	10.90B	10.74B	11.01B	7.49B	6.22B
Total Liabilities	41.23B	38.07B	41.51B	40.26B	36.91B
Stockholders Equity	-1.32B	-1.07B	-2.92B	-1.65B	-2.23B
Cash Flow
Free Cash Flow	3.16B	2.96B	3.67B	5.83B	3.74B
Operating Cash Flow	3.75B	3.57B	4.46B	6.41B	4.32B
Investing Cash Flow	-646.00M	-590.00M	-3.55B	-1.01B	-1.02B
Financing Cash Flow	-3.08B	-2.89B	-2.07B	-5.96B	-2.97B

HP Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPQ, the sentiment is Neutral. The current price of 25.41 is above the 20-day moving average (MA) of 25.11, below the 50-day MA of 25.69, and below the 200-day MA of 30.05, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 46.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HPQ.

HP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	79 Outperform	$21.03B	18.49	108.51%	2.48%	5.02%	22.19%
PSTG	76 Outperform	$19.00B	153.42	9.76%	―	10.85%	30.85%
DELL	70 Outperform	$89.09B	20.93	-179.12%	1.50%	7.68%	27.73%
WDC	63 Neutral	$23.72B	12.93	28.45%	0.15%	21.22%	―
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
HPQ	61 Neutral	$23.54B	9.66	84.33%	5.59%	2.08%	-12.41%
STX	61 Neutral	$31.64B	21.54	-109.27%	1.95%	36.29%	―

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.

The most recent analyst rating on (HPQ) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on HP stock, see the HPQ Stock Forecast page.