HPQ : NYSE : Technology
$17.8 | %
Today's Range: 17.56 - 17.87
Avg. Daily Volume: 1.07477E7
06/23/17 - 4:08 PM ET

Financial Analysis


HP INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. HP INC has weak liquidity. Currently, the Quick Ratio is 0.67 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 17.36% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)12385.011588.0
EBITDA ($mil)1070.01026.0
EBIT ($mil)981.0941.0
Net Income ($mil)559.0629.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)6223.04636.0
Total Assets ($mil)28686.025523.0
Total Debt ($mil)6820.06772.0
Equity ($mil)-3955.0-4786.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin19.9520.1
EBITDA Margin8.638.85
Operating Margin7.928.12
Sales Turnover1.721.9
Return on Assets8.5213.31
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio0.980.91
Debt/Capital2.383.41
Interest Expense73.058.0
Interest Coverage13.4416.22


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1683.341710.61
Div / share0.130.12
EPS0.330.38
Book value / share-2.35-2.8
Institutional Own % n/a n/a
Avg Daily Volume1.0364047E71.2245795E7

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 17.42 for the Computers & Peripherals industry and a significant discount compared to the S&P 500 average of 25.73. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, HP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HPQ 11.67 Peers 17.42   HPQ 9.84 Peers 11.04

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HPQ 10.04 Peers 19.50   HPQ 1.63 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.

 

Discount. 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 trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HPQ NM Peers 5.08   HPQ -24.49 Peers -6.64

Neutral. 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's P/B is negative making this valuation measure meaningless.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HPQ 0.59 Peers 3.07   HPQ 2.08 Peers -0.67

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

HPQ has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades