| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.80 | 59 |
| Intrinsic value (DCF) | 12.25 | -24 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 19.50 | 20 |
HP Inc. (7HP.DE) is a global leader in personal computing, printing, and imaging solutions, headquartered in Palo Alto, California. Operating in the Technology sector under Hardware, Equipment & Parts, HP Inc. serves both commercial and consumer markets with a diversified portfolio that includes PCs, workstations, printers, and related services. The company operates through three key segments: Personal Systems, Printing, and Corporate Investments. HP's Personal Systems segment delivers a broad range of computing devices, while its Printing segment offers hardware, supplies, and services. With a market capitalization of approximately €23.1 billion and a workforce of 56,000 employees, HP Inc. remains a dominant player in the tech industry, leveraging innovation and sustainability initiatives to maintain its competitive edge. The company's strong cash flow and dividend yield make it an attractive option for investors seeking stability in the hardware sector.
HP Inc. presents a mixed investment profile with strengths in cash flow generation and market leadership but faces challenges from declining PC demand and competitive pressures. The company reported €53.6 billion in revenue and €2.8 billion in net income for the fiscal year, with a diluted EPS of €2.81. HP's operating cash flow of €3.7 billion and a dividend yield of approximately 3.7% (based on a €1.04 dividend per share) provide income stability. However, its high beta of 1.339 indicates volatility, and the €10.9 billion in total debt raises leverage concerns. While HP benefits from strong brand recognition and recurring revenue from printing supplies, investors should monitor macroeconomic headwinds affecting hardware demand and potential margin pressures from rising component costs.
HP Inc. maintains a strong competitive position in both the PC and printing markets, supported by its brand reputation, extensive distribution network, and recurring revenue from high-margin printing supplies. In the PC segment, HP competes primarily on innovation, enterprise solutions, and sustainability initiatives, such as its commitment to recycled materials. However, the company faces intense competition from Dell and Lenovo, which have aggressively expanded their market share in commercial and consumer PCs. In printing, HP's competitive advantage lies in its proprietary ink and toner ecosystem, though this segment is under pressure from digital transformation and lower-cost competitors like Brother and Epson. HP's Corporate Investments segment, including HP Labs, provides long-term R&D potential but remains a minor contributor to revenue. The company's ability to integrate hardware with software and services (e.g., Instant Ink subscription) differentiates it, but reliance on legacy printing revenue poses risks as demand shifts toward paperless solutions.