Taking a look at a recent 8-K filing, we can see the company’s full year and fourth quarter results. Fiscal 2016 GAAP diluted net earnings per share from continues operations was $1.53, which is above their outlook. Net revenue was down 6% from prior year at $48.2 billion. The company was able to return $2.0 billion to shareholders in the form of share repurchases and dividends. All in all, these are decent numbers and prove that 2016 was a respectable year.
Switching gears to the chart, we can see that price is well of the lows of the beginning of 2016, which has allowed investors to make a solid return. Now, I would be looking for a healthy pull back and entry point for the year ahead. You can pull the chart out and see previous levels from prior years. Also, be sure to know if the moves were caused by a news announcement.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include HP income statement, its balance sheet, and the statement of cash flows. Potential HP investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although HP investors may use each financial statement separately, they are all related. The changes in HP's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on HP's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of HP
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of HP performance into the future periods or doing a reasonable stock valuation. The intrinsic value of HP shares is the value that is considered the true value of the share. If
the intrinsic value of HP is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares HP. Please read more on our
fundamental analysis page.
How effective is HP in utilizing its assets?
HP Inc reports assets on its Balance Sheet. It represents the amount of HP resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, HP aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Technology Hardware, Storage & Peripherals space. To get a better handle on how balance sheet or income statements item affect HP volatility, please check the breakdown of all its
fundamentals.
Are HP Earnings Expected to grow?
The
future earnings power of HP involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of HP factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. HP
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of HP
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of HP earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. HP dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. HP one year expected dividend income is about USD0.7 per share.
As of 04/26/2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 7.88, while
Dividends Paid is likely to drop slightly above 806.1
M.
Investing in dividend-paying stocks, such as HP Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in HP must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for HP. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
HP Gross Profit
HP Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HP previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HP Gross Profit growth over the last 10 years. Please check HP's
gross profit and other
fundamental indicators for more details.
Going after HP Financials
Risks
You can take a look at the company’s full 10-K report to get full understanding of the risks that could affect the company. A risk to keep in mind before investing is if the company is unsuccessful at addressing their business challenges, this could limit the growth of the company and the ability to invest. Also, much like many company’s, HP operates in an intensely competitive industry and competitive pressures could harm their business and financial performance. The technology industry is always changing, and if they are unable to keep up, their competitors are going to surpass them in sales. Also, be sure to check to see if other competitors are gaining ground, because all it takes is one new invention to propel a company into the spotlight.
Conclusion
HP has been around for years and continues to provide people with the technology needed for day to day business. This could be a great addition to your portfolio, but be sure to consult an investing professional to understand if this is a sound investment for your portfolio.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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