HPQ is now undervalued and could go up 163%
HP, headquartered in Palo Alto, California, employs 58,000 people and provides personal computing, imaging, and printing products through Personal Systems, Printing, and Corporate Investments segments. The company focuses on devices, services, and solutions for various markets, including 3D printing and hybrid work.
Based on our analysis, HP has garnered a 4 out of 5 stars undervalued rating from Cashu, primarily due to its strong financial performance relative to its sector.
The company's Price-to-Earnings (PE) ratio stands at 9.96, significantly lower than the sector average of 22.55. A lower PE ratio indicates that investors are paying less for each dollar of earnings, suggesting that HP may be undervalued compared to its peers. Additionally, HP's Price-to-Book (PB) ratio of 0.90, compared to the sector's 3.24, highlights that the stock is trading for less than its book value, further suggesting undervaluation.
HP's net profit margin of 5.18% contrasts sharply with the sector's -15.35%, demonstrating that HP is effective in converting revenues into actual profit. This efficiency is further reflected in its Return on Equity (ROE) of 16.40%, which is well above the sector average of -24.75%. A higher ROE indicates that HP is generating more profit per dollar of shareholder equity, underscoring its strong operational performance.
Moreover, HP offers a dividend yield of 3.96%, significantly higher than the sector’s 0.10%. This attractive yield can provide a steady income stream for investors, adding to its appeal as an undervalued stock. Finally, the company's Return on Assets (ROA) of 6.95% compared to the sector's -12.89% indicates that HP is using its assets efficiently to generate profits.
This is not a comprehensive overview of our valuation and should not be viewed as financial advice. Always do your own research before considering an investment.
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