HP shares moved -19.5% over the last 52 weeks, with a high of $41.47 and a low of $24.08. During this time, the stock lagged the S&P 500 index by -9.6%. As of January 2022, the company's 50-day average price is $28.28. HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The large-cap Technology company has 58,000 full time employees and is based in Palo Alto, CA. HP has returned a 3.4% dividend yield over the last 12 months.
Revenues and Margins With a Positive Growth Rate:
|Gross Margins Growth||n/a||-3.16%||14.67%||-7.11%|
|Operating Margins Growth||n/a||29.41%||34.85%||-6.74%|
|Earnings Per Share||$2.07||$2.0||$5.33||$3.05|
|Free Cash Flow (MM)||$3,983||$3,736||$5,827||$3,672|
|Capital Expenditures (MM)||-$671||-$580||-$582||-$791|
|Net Debt / EBITDA||0.16||0.34||0.54||1.34|
HP Is Currently Fairly Valued:
Compared to the Technology sector's average of 26.5, HP has a trailing twelve month P/E ratio of 9.6 and, according to its EPS guidance of 3.67, an expected P/E ratio of 8.0. HP's PEG ratio is 0.27 based on its 35.0% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by HP's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.73, which still suggests that company's shares are possibly undervalued.
HP's elevated P/B ratio notwithstanding, the company's strong cash flows and healthy debt levels factor towards it being fairly valued.
HP Is the Subject of Mixed Market Indicators:
16 analysts are following HP and have set target prices ranging from $24 to $37 per share. On average, they have given the company a rating of hold. At the current price of $29.23, HPQ is trading -0.37% away from its average analyst target price of $29.34 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 3.4% of the company's shares are tied to short positions. Institutions own 83.4% of HP's shares, while the insider ownership rate stands at 0.21%. The biggest shareholder is Berkshire Hathaway, Inc with a 11% stake in the company worth approximately $3,053,834,455.