HP Inc.

HPQ

33.64 (0.00%) 0.00

31.55(B)

Information Technology

Technology Hardware Storage and Peripherals

HP Inc. provides personal computing printing 3D printing hybrid work gaming and other related technologies in the United States and internationally. The company operates through three segments: Personal Systems Printing and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops and notebooks workstations thin clients retail point-of-sale systems displays software support and services as well as hybrid systems. The Printing segment provides consumer and commercial printer hardware supplies solutions and services as well as focuses on graphics and 3D printing and personalization solutions in the commercial and industrial markets. The Corporate Investments segment is involved in the business incubation and investment projects. It serves individual consumers small- and medium-sized businesses and large enterprises. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto California.

Holdings:

Cost basis:

HP Inc. (HPQ) price target and intrinsic value estimate

HPQ's fair price estimate is $53.4

This valuation is based on a fair P/E of 15.7 and EPS estimates of $3.40

The median analyst price target for HPQ is $36.5.

Analyst price targets range from $30.0 to $40.0

Is HPQ overvalued or undervalued?

HPQ is currently trading at $33.64

HPQ is undervalued by 37% using the pevaluation method.

HPQ is undervalued by 8% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Current price

$33.64

Undervalued

Low

$40.1

Median

$53.4

High

$66.8

Fair P/E

Margin of safety

Analyst valuation

Current price

$33.64

Fairly valued

Low

$30.0

Median

$36.5

High

$40.0

Strong Buy1

Buy2

Hold12

Sell1

Strong Sell0

Discounted cash-flow

N/A
Negative FCF or FCF estimates

TTM FCFFCF est.Growth FCFTerminal FCF

Discount
rate10%

Terminal
rate5%

Growth p.
length5y

Growth p.
rate10%

Economic moat: Medium

Overview

Market data

Market cap:$31.55(B)

Enterprise value:$39.22(B)

Total Equity:$-1.32(B)

Shares outstanding:937.80(M)

Div. yield:3.27%

P/S:0.61

P/E:11.89

P/FCF:10.01

P/B:N/A

EPS:$2.8

FCF per share:$3.4

Dividend per share:$1.1

Income (TTM)

Revenue$53.56(B)

Gross profit$11.82(B)

EBITDA$5.04(B)

Net income$2.77(B)

Gross margin22.1%

Net margin5.2%

Balance sheet

Total assets$39.91(B)

Total liabilities$41.23(B)

Cash & Short-term inv.$3.25(B)

Long-term debt$8.26(B)

Debt issued$380.00(M)

Debt repaid$-213.00(M)

Cash flow (TTM)

FCF$3.16(B)

CapEx$-592.00(M)

Dividends paid$-1.07(B)

Stock issued$0

Stock repurchased$-2.10(B)

Stock-based comp.$452.00(M)

Future Growth

Revenue

CAGR: 0.7%

FY+1$54.92(B)

FY+2$56.52(B)

FY+3$56.94(B)

FY+4$56.48(B)

FY+5$56.56(B)

Net Income

CAGR: -0.9%

FY+1$3.39(B)

FY+2$3.38(B)

FY+3$3.41(B)

FY+4$3.17(B)

FY+5$3.26(B)

EPS

CAGR: 4.7%

FY+1$3.58

FY+2$3.74

FY+3$4.03

FY+4$3.97

FY+5$4.31

FCF per share

CAGR: -4.7%

FY+1$4.06

FY+2$3.99

FY+3$3.69

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

FCFCFONet IncomeD&AStock-based Comp.CFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures

Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

ROICROAROCEROE

Market Cap.