Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
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Highlights from the ratings report include:
- Compared to its price level of one year ago, HPQ is up 109.63% to its most recent closing price of 25.03. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The net income increased by 115.7% when compared to the same quarter one year prior, rising from -$8,857.00 million to $1,390.00 million.
- Net operating cash flow has declined marginally to $2,674.00 million or 6.04% when compared to the same quarter last year.
- Even though the current debt-to-equity ratio is 1.01, it is still below the industry average, suggesting that this level of debt is acceptable within the Computers & Peripherals industry. Despite the fact that HPQ's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.67 is low and demonstrates weak liquidity.
- The gross profit margin for HEWLETT-PACKARD CO is currently lower than what is desirable, coming in at 26.33%. Regardless of HPQ's low profit margin, it has managed to increase from the same period last year.
Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers, small-and medium-sized businesses (SMBs), and large enterprises, including customers in the government, health, and education sectors worldwide. Hewlett-Packard has a market cap of $47.9 billion and is part of the technology sector and computer hardware industry. Shares are up 75.7% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.