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HP Inc
HPQ : NYSE : Technology
$12.61 | %
Today's Range: 12.51 - 12.88
Avg. Daily Volume: 30,149,300
11/27/15 - 1:00 PM ET

Financial Analysis

HP INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HP INC has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.87% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)25714.028406.0
EBITDA ($mil)3089.03656.0
EBIT ($mil)2082.02581.0
Net Income ($mil)1323.01330.0

Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)17433.015133.0
Total Assets ($mil)106882.0103206.0
Total Debt ($mil)24665.019525.0
Equity ($mil)27768.026731.0

Profitability Q4 FY15 Q4 FY14
Gross Profit Margin27.6627.8
EBITDA Margin12.0112.87
Operating Margin8.19.09
Sales Turnover0.971.08
Return on Assets4.264.85
Return on Equity16.418.75
Debt Q4 FY15 Q4 FY14
Current Ratio1.231.15
Interest Expense0.0140.0
Interest Coverage0.018.44

Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)1801.01839.29
Div / share0.180.16
Book value / share15.4214.53
Institutional Own % n/a n/a
Avg Daily Volume1.7487012E71.3050683E7


BUY. This stock's P/E ratio indicates a discount compared to an average of 14.24 for the Computers & Peripherals industry and a significant discount compared to the S&P 500 average of 22.01. For additional comparison, its price-to-book ratio of 0.82 indicates a significant discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 4.78. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, HP INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HPQ 5.10 Peers 14.24   HPQ 3.51 Peers 8.35

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HPQ is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HPQ is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HPQ 7.66 Peers 12.82   HPQ NM Peers 2.08

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HPQ is trading at a significant discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HPQ's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HPQ 0.82 Peers 4.78   HPQ -5.35 Peers 23.86

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HPQ is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, HPQ is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HPQ 0.22 Peers 2.50   HPQ -7.27 Peers 20.70

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HPQ is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HPQ significantly trails its peers on the basis of sales growth



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