HP Inc. [NYSE:HPQ]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding HP Inc. [HPQ], the latest average analyst recommendation we can see is from the quarter closing in October. On average, stock market experts give HPQ an Outperform rating. Its stock price has been found in the range of 18.06 to 27.08. This is compared to its latest closing price of $18.94.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for HP Inc. [HPQ] is sitting at 2.27. This is compared to 1 month ago, when its average rating was 2.07.
For the quarter ending in Jan-19 HP Inc. [HPQ] generated $14.71 billion in sales. That’s 1.02% lower than the average estimate of $14.86 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 23 May (In 6 Days).
Fundamental Analysis of HP Inc. [HPQ]
Now let’s turn to look at profitability: with a current Operating Margin for HP Inc. [HPQ] sitting at +7.80 and its Gross Margin at +18.47, this company’s Net Margin is now 7.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 93.80, and its Return on Invested Capital has reached 70.80%. Its Return on Assets is 15.78.
Similarly, its Total Debt to Total Capital is 111.95, while its Total Debt to Total Assets stands at 17.29.
What about valuation? This company’s Enterprise Value to EBITDA is 5.77 and its Total Debt to EBITDA Value is 1.17. The Enterprise Value to Sales for this firm is now 0.50, and its Total Debt to Enterprise Value stands at 0.15.
Shifting the focus to workforce efficiency, HP Inc. [HPQ] earns $1,067,473 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.74 and its Total Asset Turnover is 1.74. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.61 and its Current Ratio is 0.85. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
HP Inc. [HPQ] has 1.55B shares outstanding, amounting to a total market cap of $29.30B. Its stock price has been found in the range of 18.06 to 27.08. At its current price, it has moved by -30.04% from its 52-week high, and it has moved 4.90% from its 52-week low.
This stock’s Beta value is currently 1.39, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 41.67. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is HP Inc. [HPQ] a Reliable Buy?
Shares of HP Inc. [HPQ], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.