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HP (HPQ) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Technology•Computer Hardware
C
AverageMetricSide Score: 44/100
ProfitabilityProfit8/30
GrowthGrowth12/25
Balance SheetBalance8/25
Cash QualityCash16/20
Price & Volume
Market Cap $20.22B

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, hybrid systems, and endpoint security and services, as well as lifecycle services, including support and deployment, configurations, and extended warranty services. The Printing segment provides consumer and commercial printer hardware, supplies, and solutions, as well as office and home printing solutions; and focuses on graphics, 3D printing, and personalization solutions for the commercial and industrial markets. The Corporate Investments segment is involved in the business incubation and investment projects. It serves small- and medium-sized businesses, public sector, and 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.

Moat Signals

Competitive analysis based on 66 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~5.8% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

Limited ROE data for a reliable assessment.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~7.8% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 66 quarters

Low Risk

Margin Pressure

Watch

Operating margins declined 15.9% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Shares decreased 5.8% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of April 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$57.42B
5.7%
Q. Revenue
$14.41B
TTM EBITDA
$4.55B
2.5%
TTM Op. Income
$3.05B
11.2%
Q. Op. Income
$612.00M
TTM Net Income
$2.55B
1.4%
Q. Net Income
$450.00M
EPS
$0.49
Shares Out.
$922.00M
2.9%
$57.42B in TTM revenue grew 5.7% YoY, reaching $14.41B last quarter. TTM EBITDA of $4.55B and TTM operating income of $3.05B shows growth is flowing through. Net income of $2.55B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
20.9%
1.0%
EBITDA Margin
6.1%
Op. Margin
4.2%
14.1%
Net Margin
3.1%
1.7%
Op. margin of 4.2% is down 0.7% YoY — costs are rising relative to revenue. Net margin at 3.1% and gross margin of 20.9% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
7.9x
P/S Ratio
0.4x
P/B Ratio
N/A
At 7.9x P/E, the stock trades below market averages — potentially undervalued. P/S of 0.4x and P/B of 0.0x provide additional context. Below-market P/E with growing revenue suggests a potential buying opportunity — the stock may be undervalued relative to its fundamentals.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$42.94B
Cash
$3.70B
Long-Term Debt
$8.86B
Book Value
$-144.00M
D/E Ratio
N/A
Debt/EBITDA
10.1

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$926.00M
Free Cash Flow
$756.00M
621.4%
FCF Margin
1.3%
FCF / Net Income
1.7
FCF of $756.00M on $926.00M in operating cash flow. The FCF / Net Income ratio of 0.3x indicates partial cash conversion — earnings quality needs attention.

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