HP Inc
HPQ
Market Cap$24.46B
Close$
Earnings Call Q1 2025
February 27, 2025 - AI Summary
Strong Q1 Performance: HP Inc. reported a 2% year-over-year revenue growth for Q1 2025, marking the third consecutive quarter of revenue growth. Non-GAAP earnings per share (EPS) of $0.74 slightly exceeded expectations, reflecting solid overall performance.
Personal Systems Growth Outlook: The company expects personal systems revenue to grow faster than the overall market, driven by strong commercial demand, particularly in premium and AI PCs. Commercial revenue rose 10% year-over-year, with strong performance from AI PCs and an anticipated recovery in consumer demand later in the fiscal year.
Challenges from Tariffs and Commodity Costs: HP has incorporated the impact of the current 10% tariffs on its guidance but is not factoring in potential additional tariffs. Commodity costs remain a headwind for margins in FY 2025, though the company anticipates improvements in margins as lower-cost components are qualified and effective cost management strategies are employed.
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$39.72
50.9% upside
Current Fair Value
50.9% upsideUndervalued by 50.9% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $24.46 Billion |
|---|---|
| Enterprise Value | $31.26 Billion |
| Dividend Yield | $1.13 (4.35452793834297%) |
| Earnings per Share | $2.83 |
| Beta | 1.11 |
| Outstanding Shares | 948,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 9.05 |
|---|---|
| PEG | -98.77 |
| Price to Sales | 0.47 |
| Price to Book Ratio | 8.78 |
| Enterprise Value to Revenue | 0.58 |
| Enterprise Value to EBIT | 8.04 |
| Enterprise Value to Net Income | 11 |
| Total Debt to Enterprise | 0.31 |
| Debt to Equity | 3.01 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About HP Inc
53,000 employees
CEO: Margaret Whitman HP Inc. creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers and 3D printing solutions, we engineer experiences that amaze.