HP Z Score

HPQ Stock

USD 27.72 0.13 0.47%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out HP Piotroski F Score and HP Valuation analysis. To learn how to invest in HP Stock please use our How to Invest in HP guide.

HP Return on Invested Capital is relatively stable at the moment as compared to the past year. HP reported last year Return on Invested Capital of 0.58. As of 03/26/2023, Invested Capital is likely to grow to about 13.6 B, while Capital Expenditure is likely to drop (949.2 M). HP Selling General and Administrative Expense is relatively stable at the moment as compared to the past year. HP reported last year Selling General and Administrative Expense of 4.74 Billion. As of 03/26/2023, Weighted Average Shares is likely to grow to about 1.2 B, while Interest Expense is likely to drop slightly above 210.3 M.

HP Z Score Analysis

HP's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

	2022	2023 (projected)
Long Term Debt to Equity	0.71	0.65
Interest Coverage	14.98	15.37

Long Term Debt to Equity Interest Coverage

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

Current HP Z Score

2.2

Most of HP's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, HP Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

First Factor

1.2 * (

Working Capital

Total Assets )

Second Factor

1.4 * (

Retained Earnings

Total Assets )

Thrid Factor

3.3 * (

EBITAD

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

Total Assets )

HP Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for HP is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since HP's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of HP's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of HP's interrelated accounts and indicators.

	Accounts Payable	Total Assets	Current Assets	Cash and Equivalents	Total Debt	Debt Current	Deferred Revenue	Shareholders Equity	Investments Current	Total Liabilities	Current Liabilities	Tax Liabilities
Accounts Payable		0.24	0.25	0.08	-0.04	0.05	0.01	0.29	0.02	0.22	0.34	0.05
Total Assets	0.24		1.0	0.85	0.84	0.88	0.85	0.99	0.65	1.0	0.98	0.83
Current Assets	0.25	1.0		0.87	0.81	0.88	0.84	0.99	0.66	0.99	0.97	0.82
Cash and Equivalents	0.08	0.85	0.87		0.78	0.83	0.88	0.86	0.68	0.83	0.83	0.91
Total Debt	-0.04	0.84	0.81	0.78		0.94	0.97	0.76	0.72	0.87	0.85	0.88
Debt Current	0.05	0.88	0.88	0.83	0.94		0.95	0.84	0.84	0.9	0.91	0.89
Deferred Revenue	0.01	0.85	0.84	0.88	0.97	0.95		0.81	0.76	0.87	0.87	0.95
Shareholders Equity	0.29	0.99	0.99	0.86	0.76	0.84	0.81		0.61	0.97	0.96	0.82
Investments Current	0.02	0.65	0.66	0.68	0.72	0.84	0.76	0.61		0.68	0.69	0.67
Total Liabilities	0.22	1.0	0.99	0.83	0.87	0.9	0.87	0.97	0.68		0.98	0.82
Current Liabilities	0.34	0.98	0.97	0.83	0.85	0.91	0.87	0.96	0.69	0.98		0.85
Tax Liabilities	0.05	0.83	0.82	0.91	0.88	0.89	0.95	0.82	0.67	0.82	0.85

Click cells to compare fundamentals

To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.

Competition

Predict HP

According to the company's disclosures, HP Inc has a Z Score of 2.2. This is 83.64% lower than that of the Technology Hardware, Storage & Peripherals sector and significantly higher than that of the Information Technology industry. The z score for all United States stocks is 74.77% higher than that of the company.

HP Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses HP's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of HP could also be used in its relative valuation, which is a method of valuing HP by comparing valuation metrics of similar companies.

HP is currently under evaluation in z score category among related companies.

HP Current Valuation Drivers

We derive many important indicators used in calculating different scores of HP from analyzing HP's financial statements. These drivers represent accounts that assess HP's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of HP's important valuation drivers and their relationship over time.

	2018	2019	2020	2021	2022	2023 (projected)
Net Income Per Employee	56.29 K	53.51 K	127.51 K	55.22 K	49.7 K	43.96 K
Revenue Per Employee	1.05 M	1.07 M	1.24 M	1.09 M	977.32 K	830.16 K
Average Assets	32.58 B	33.59 B	35.85 B	39.16 B	35.25 B	44.07 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA	4.62 B	4.25 B	6.09 B	5.46 B	6.27 B	6.33 B
Earnings Before Interest Taxes and Depreciation Amortization USD	4.62 B	4.25 B	6.09 B	5.46 B	6.27 B	6.33 B
Earnings before Tax	2.52 B	3.23 B	7.51 B	4.44 B	5.11 B	4.4 B
Average Equity	(1.41 B)	(1.65 B)	(3.05 B)	(2.37 B)	(2.13 B)	(2.18 B)
Enterprise Value	25.88 B	26.25 B	38.63 B	33.4 B	30.06 B	33.47 B
Free Cash Flow	3.98 B	3.74 B	5.83 B	3.7 B	3.33 B	3.94 B
Invested Capital	2.4 B	3.43 B	5.9 B	11.76 B	10.59 B	13.59 B
Invested Capital Average	2.87 B	3.37 B	4 B	9.32 B	8.39 B	11.87 B
Market Capitalization	25.74 B	24.67 B	34.96 B	27.78 B	25.01 B	28.53 B
Tangible Asset Value	27.09 B	28.3 B	31.81 B	30.05 B	27.04 B	33.84 B
Working Capital	(5.12 B)	(5.57 B)	(6.93 B)	(6.35 B)	(5.72 B)	(5.87 B)

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

HP Institutional Holders

Institutional Holdings refers to the ownership stake in HP that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of HP's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing HP's value.

	Last Transaction	Type	Shares	Value
Vanguard Group Inc	2022-12-31	Common Shares	93.7 M	2.5 B
State Street Corp	2022-12-31	Common Shares	47.4 M	1.3 B
Primecap Management Co	2022-12-31	Common Shares	22.5 M	603.8 M
New England Asset Management Inc	2022-12-31	Common Shares	16.5 M	442.7 M
Morgan Stanley	2022-12-31	Common Shares	14.6 M	393.4 M
Lsv Asset Management	2022-12-31	Common Shares	13.4 M	360.1 M
Northern Trust Corp	2022-12-31	Common Shares	11.3 M	302.5 M
Legal General Group Plc	2022-12-31	Common Shares	9.8 M	262.3 M
Ubs Asset Management Americas Inc	2022-12-31	Common Shares	8.2 M	219.7 M
Parametric Portfolio Associates Llc	2022-03-31	Common Shares	5.9 M	212.6 M
Pacer Advisors Inc	2022-12-31	Common Shares	7.4 M	198 M

HP Fundamentals

	Return On Asset	0.08 %
	Profit Margin	0.0436 %
	Operating Margin	0.08 %
	Current Valuation	37 B
	Shares Outstanding	985.33 M
	Shares Owned by Insiders	0.21 %
	Shares Owned by Institutions	81.36 %
	Number of Shares Shorted	27.53 M
	Price to Earning	9.89 X
	Price to Sales	0.42 X
	Revenue	62.98 B
	Gross Profit	12.34 B
	EBITDA	5.58 B
	Net Income	3.2 B
	Cash and Equivalents	3.15 B
	Cash per Share	3.15 X
	Total Debt	10.8 B
	Debt to Equity	0.88 %
	Current Ratio	0.76 X
	Book Value Per Share	(3.79) X
	Cash Flow from Operations	4.46 B
	Short Ratio	4.85 X
	Earnings Per Share	2.51 X
	Price to Earnings To Growth	8.51 X
	Target Price	29.34
	Number of Employees	58 K
	Beta	1.03
	Market Capitalization	27.31 B
	Total Asset	38.59 B
	Retained Earnings	(755.57 M)
	Working Capital	(340 M)
	Current Asset	18.47 B
	Current Liabilities	18.81 B
	Z Score	2.2
	Annual Yield	0.0372 %
	Five Year Return	2.90 %
	Net Asset	38.59 B
	Last Dividend Paid	1.01

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.

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Our tools can tell you how much better you can do entering a position in HP without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Check out HP Piotroski F Score and HP Valuation analysis. To learn how to invest in HP Stock please use our How to Invest in HP guide. You can also try Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Complementary Tools for analysis

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

(0.51)

Dividend Share

1.012

Earnings Share

2.51

Revenue Per Share

58.9

Quarterly Revenue Growth

(0.19)

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.

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HP Z Score

HP Z Score Analysis

Current HP Z Score

HP Z Score Driver Correlations

HP Z Score Peer Comparison

HP Current Valuation Drivers

HP ESG Sustainability

HP Institutional Holders

HP Fundamentals

About HP Fundamental Analysis

Be your own money manager

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Instant Ratings

Becoming a Better Investor with Macroaxis

Build Optimal Portfolios

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Complementary Tools for analysis

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