HP Beneish M Score

HPQ Stock  USD 30.51  0.28  0.91%   
This module uses fundamental data of HP to approximate the value of its Beneish M Score. HP M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check HP Piotroski F Score and HP Altman Z Score analysis.
  
HP Total Debt is very stable at the moment as compared to the past year. HP reported last year Total Debt of 6.74 Billion. As of 4th of February 2023, Debt Current is likely to grow to about 1 B, while Long Term Debt to Equity is likely to drop 0.65. HP Quick Ratio is very stable at the moment as compared to the past year. HP reported last year Quick Ratio of 0.48. As of 4th of February 2023, Current Ratio is likely to grow to 1.04, while Receivables Turnover is likely to drop 6.61.
At this time, it appears that HP Inc is a possible manipulator. The earnings manipulation may begin if HP's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by HP executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of HP's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.96
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.07Focus
Asset Quality1.82Focus
Expense Coverage0.92Focus
Gross Margin Strengs1.03Focus
Accruals Factor0.92Focus
Depreciation Resistance1.4Focus
Net Sales Growth1.21Focus
Financial Leverage Condition0.86Focus

HP Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if HP's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense5.8 B5.2 B
Moderately Up
Down
Slightly volatile
Revenues88.5 B73 B
Fairly Up
Down
Slightly volatile
Trade and Non Trade Receivables6.4 BB
Significantly Up
Down
Slightly volatile
Property Plant and Equipment Net3.6 B2.3 B
Way Up
Down
Slightly volatile
Operating Income5.8 B6.1 B
Notably Down
Up
Pretty Stable
Net Cash Flow from Operations8.3 B7.4 B
Moderately Up
Down
Slightly volatile
Liabilities Non Current14.9 B10 B
Way Up
Down
Slightly volatile
Current Liabilities38.1 B33.5 B
Fairly Up
Down
Slightly volatile
Total Liabilities58.7 B46.3 B
Significantly Up
Down
Slightly volatile
Investments Non Current8.1 B7.6 B
Notably Up
Down
Slightly volatile
Investments Current2.7 B2.7 B
Fairly Up
Down
Slightly volatile
Investments10.9 B10.3 B
Notably Up
Down
Slightly volatile
Gross Margin25.124.3
Sufficiently Up
Down
Pretty Stable
Depreciation Amortization and Accretion725.1 M706.5 M
Fairly Up
Down
Slightly volatile
Debt Non Current7.6 B5.7 B
Significantly Up
Down
Slightly volatile
Debt CurrentB995.4 M
Fairly Up
Down
Slightly volatile
Total Debt9.3 B6.7 B
Significantly Up
Down
Slightly volatile
Assets Non Current22.3 B14.8 B
Way Up
Down
Slightly volatile
Current Assets34.3 B25.5 B
Significantly Up
Down
Slightly volatile
Total Assets65.9 B44.4 B
Way Up
Down
Slightly volatile

HP Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between HP's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards HP in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find HP's degree of accounting gimmicks and manipulations.

About HP Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

8.89 Billion

HP Operating Expenses is very stable at the moment as compared to the past year. HP reported last year Operating Expenses of 7.3 Billion

HP Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as HP. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201820192020202120222023 (projected)
Revenues58.47 B58.76 B56.64 B63.49 B73.01 B88.52 B
Total Assets34.62 B33.47 B34.68 B38.61 B44.4 B65.91 B
Current Assets21.39 B20.18 B20.65 B22.17 B25.5 B34.32 B
Assets Non Current13.23 B13.29 B14.03 B16.44 B14.8 B22.26 B
Total Liabilities35.26 B34.66 B36.91 B40.26 B46.3 B58.7 B
Current Liabilities25.13 B25.29 B26.22 B29.1 B33.46 B38.11 B
Total Debt5.99 B5.14 B6.22 B7.49 B6.74 B9.27 B
Debt Current1.46 B357 M674 M1.11 B995.4 M1.02 B
Debt Non Current4.52 B4.78 B5.54 B6.39 B5.75 B7.56 B
Operating Income4.06 B3.88 B3.46 B5.3 B6.1 B5.8 B
Gross Margin18.2519.0118.4321.1324.325.1

HP ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, HP's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to HP's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About HP Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze HP Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of HP using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of HP Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. HP Inc. was founded in 19 and is headquartered in Palo Alto, California. Hp operates under Computers Phones And Devices classification in the United States and is traded on New York Stock Exchange.

HP Investors Sentiment

The influence of HP's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in HP. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to HP's public news can be used to forecast risks associated with investment in HP. The trend in average sentiment can be used to explain how an investor holding HP can time the market purely based on public headlines and social activities around HP Inc. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
HP's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for HP's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average HP's news discussions. The higher the estimated score, the more favorable is the investor's outlook on HP.

HP Implied Volatility

    
  26.04  
HP's implied volatility exposes the market's sentiment of HP Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if HP's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that HP stock will not fluctuate a lot when HP's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards HP in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, HP's short interest history, or implied volatility extrapolated from HP options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as HP Inc using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Please check HP Piotroski F Score and HP Altman Z Score analysis. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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When running HP Inc price analysis, check to measure HP's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HP is operating at the current time. Most of HP's value examination focuses on studying past and present price action to predict the probability of HP's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move HP's price. Additionally, you may evaluate how the addition of HP to your portfolios can decrease your overall portfolio volatility.
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Is HP's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HP. If investors know HP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HP listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.174
Market Capitalization
29.3 B
Quarterly Revenue Growth
(0.11) 
Return On Assets
0.085
The market value of HP Inc is measured differently than its book value, which is the value of HP that is recorded on the company's balance sheet. Investors also form their own opinion of HP's value that differs from its market value or its book value, called intrinsic value, which is HP's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HP's market value can be influenced by many factors that don't directly affect HP's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HP's value and its price as these two are different measures arrived at by different means. Investors typically determine HP value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HP's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.