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 Inc. (HP) has received an undervalued rating of 4 out of 5 stars from Cashu, primarily due to its attractive financial metrics compared to industry averages.
One of the most notable indicators is HP's Price-to-Earnings (PE) Ratio of 9.91, significantly lower than the sector average of 22.55. A lower PE ratio suggests that HP's stock is less expensive relative to its earnings, indicating potential for price appreciation as the market recognizes its true value.
Additionally, HP's Price-to-Book (PB) Ratio stands at 0.90, compared to the sector's 3.24. This lower PB ratio indicates that the stock is undervalued based on its book value, making it an attractive option for investors looking for value in their investments.
HP also boasts a strong Net Profit Margin of 5.18, significantly higher than the sector's -15.35. This indicates that HP is more efficient at converting revenue into actual profit, which is a positive sign for its financial health.
The company's Return on Equity (ROE) is 16.40, vastly outpacing the sector average of -24.75. A high ROE signifies that HP is effectively utilizing shareholders' equity to generate profits.
Moreover, HP offers a Dividend Yield of 3.98, well above the sector average of 0.10, providing income potential for investors. Lastly, its Return on Assets Ratio is 6.95, compared to the sector average of -12.89, demonstrating effective asset management.
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.
📡️ Information Technology