| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
HP Inc. (HPQ.SW) is a global leader in personal computing, printing, and related technology solutions, serving consumers, businesses, and enterprises across diverse sectors. Headquartered in Palo Alto, California, HP operates through three core segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment delivers a broad portfolio of desktops, notebooks, workstations, and peripherals, catering to both commercial and consumer markets. The Printing segment offers innovative hardware, supplies, and services for home and office use. With a legacy dating back to 1939, HP Inc. has evolved into a key player in the technology sector, leveraging its strong R&D capabilities (through HP Labs) and strategic investments to drive innovation. The company’s diversified revenue streams and global footprint position it well in the competitive computer hardware industry, where it continues to adapt to trends like hybrid work environments and sustainable technology solutions.
HP Inc. presents a mixed investment profile. On the positive side, the company maintains a strong market position in both personal computing and printing, supported by recurring revenue from high-margin printing supplies. Its dividend yield (~3.5%) and share buybacks appeal to income-focused investors. However, challenges include declining demand in the PC market post-pandemic, supply chain vulnerabilities, and competitive pressures in commoditized hardware segments. The company’s moderate net income ($3.26B) and operating cash flow ($3.57B) are offset by significant debt ($9.48B), though liquidity remains stable ($3.23B cash). Investors should weigh HP’s resilience in commercial markets against cyclical risks and slower growth in printing.
HP Inc. competes in highly saturated markets where differentiation is critical. In Personal Systems, its strengths lie in commercial PCs and workstations, where brand loyalty and enterprise relationships provide an edge. However, it faces intense competition from Dell and Lenovo, which dominate certain segments with aggressive pricing and supply chain efficiencies. In Printing, HP’s Instant Ink subscription model and focus on premium printers differentiate it, but rivals like Canon and Epson offer superior print quality in niche markets. HP’s competitive advantages include its global scale, strong distribution network, and integrated software-hardware ecosystems (e.g., HP Wolf Security). Yet, its reliance on hardware sales leaves it vulnerable to market cyclicality compared to peers diversifying into services (e.g., IBM). The company’s innovation pipeline (e.g., 3D printing, sustainable products) could drive long-term growth but requires sustained R&D investment.