📊 HPQ Key Takeaways
Is Hp Inc. (HPQ) a Good Investment?
HP Inc faces structural headwinds with deteriorating profitability metrics and negative stockholders' equity, indicating potential insolvency concerns. While the company generates positive operating cash flow and maintains serviceable debt coverage, the combination of weak margins (3.8% net), poor liquidity (0.76x current ratio), and negative equity raises significant questions about long-term viability and equity value.
HP shows modest top-line growth, but that growth is not translating into stronger shareholder economics: net income was flat, diluted EPS declined, and free cash flow remains thin at just 1.0% of revenue. Profitability is low for a hardware business, and the balance sheet adds risk with negative equity, sub-1.0 liquidity ratios, and meaningful long-term debt.
Why Buy Hp Inc. Stock? HPQ Key Strengths
- Positive operating cash flow of $383M demonstrates underlying business can generate cash
- Adequate interest coverage ratio of 7.7x suggests near-term debt service capability
- Modest revenue growth of 3.2% YoY shows some business resilience in competitive hardware market
- Revenue grew 3.2% year over year, indicating the business is still generating demand
- Gross profit remains sizable and interest coverage of 7.7x suggests debt service is currently manageable
- The company remains profitable at the operating and net income level
HPQ Stock Risks: Hp Inc. Investment Risks
- Negative stockholders' equity of -$766M indicates liabilities exceed assets and equity value is destroyed
- Critically weak liquidity with current ratio of 0.76x and quick ratio of 0.46x creates near-term refinancing risk
- Deteriorating profitability with net margin of only 3.8% and EPS declining 5.7% YoY despite flat net income growth
- Free cash flow margin of only 1.0% leaves minimal cushion for dividends, buybacks, or debt reduction
- High long-term debt of $8.8B relative to thin profitability creates leverage risk if operational performance declines
- Negative stockholders equity points to a weak balance sheet structure and limits the usefulness of ROE and debt-to-equity analysis
- Current ratio of 0.76x and quick ratio of 0.46x indicate tight liquidity
- Growth quality is weak because revenue increased while net income stayed flat, EPS fell, and free cash flow was only $150M
Key Metrics to Watch
- Stockholders' equity trend and path to positive equity restoration
- Operating margin trajectory and gross margin sustainability
- Free cash flow generation and debt paydown progress
- Current ratio improvement and working capital management
- Free cash flow margin and operating cash flow conversion
- Liquidity and balance sheet repair, especially equity trend and debt levels
Hp Inc. (HPQ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HPQ Profit Margin, ROE & Profitability Analysis
HPQ vs Technology Sector: How Hp Inc. Compares
How Hp Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hp Inc. Stock Overvalued? HPQ Valuation Analysis 2026
Based on fundamental analysis, Hp Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hp Inc. Balance Sheet: HPQ Debt, Cash & Liquidity
HPQ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hp Inc.'s revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $3.26 reflects profitable operations.
HPQ Revenue Growth, EPS Growth & YoY Performance
HPQ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.5B | $545.0M | $0.58 |
| Q3 2025 | $13.5B | $406.0M | $0.65 |
| Q2 2025 | $12.8B | $406.0M | $0.42 |
| Q1 2025 | $13.2B | $565.0M | $0.59 |
| Q3 2024 | $13.2B | $469.0M | $0.65 |
| Q2 2024 | $12.8B | $469.0M | $0.61 |
| Q1 2024 | $13.2B | $469.0M | $0.47 |
| Q3 2023 | $12.9B | $469.0M | $0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hp Inc. Dividends, Buybacks & Capital Allocation
HPQ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hp Inc. (CIK: 0000047217)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/form4-04032026_050454.xml | View → |
| Mar 27, 2026 | 4 | xslF345X06/form4-03272026_090326.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/form4-03132026_080353.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_090323.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_090306.xml | View → |
❓ Frequently Asked Questions about HPQ
What is the AI rating for HPQ?
Hp Inc. (HPQ) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HPQ's key strengths?
Claude: Positive operating cash flow of $383M demonstrates underlying business can generate cash. Adequate interest coverage ratio of 7.7x suggests near-term debt service capability. ChatGPT: Revenue grew 3.2% year over year, indicating the business is still generating demand. Gross profit remains sizable and interest coverage of 7.7x suggests debt service is currently manageable.
What are the risks of investing in HPQ?
Claude: Negative stockholders' equity of -$766M indicates liabilities exceed assets and equity value is destroyed. Critically weak liquidity with current ratio of 0.76x and quick ratio of 0.46x creates near-term refinancing risk. ChatGPT: Negative stockholders equity points to a weak balance sheet structure and limits the usefulness of ROE and debt-to-equity analysis. Current ratio of 0.76x and quick ratio of 0.46x indicate tight liquidity.
What is HPQ's revenue and growth?
Hp Inc. reported revenue of $14.4B.
Does HPQ pay dividends?
Hp Inc. pays dividends, with $277.0M distributed to shareholders in the trailing twelve months.
Where can I find HPQ SEC filings?
Official SEC filings for Hp Inc. (CIK: 0000047217) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HPQ's EPS?
Hp Inc. has a diluted EPS of $0.58.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HPQ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hp Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HPQ stock overvalued or undervalued?
Valuation metrics for HPQ: ROE of N/A (sector avg: 22%), net margin of 3.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy HPQ stock in 2026?
Our dual AI analysis gives Hp Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HPQ's free cash flow?
Hp Inc.'s operating cash flow is $383.0M, with capital expenditures of $233.0M. FCF margin is 1.0%.
How does HPQ compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.8% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.76 (avg: 2.5).