Hp Profitability Analysis

HPQ
 Stock
  

USD 25.04  0.08  0.32%   

For Hp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hp Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hp Inc over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
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.
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.

Hp Inc Debt to Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hp's current stock value. Our valuation model uses many indicators to compare Hp value to that of its competitors to determine the firm's financial worth.
Hp Inc is one of the top stocks in net income category among related companies. It is one of the top stocks in debt to equity category among related companies . The ratio of Net Income to Debt to Equity for Hp Inc is about  7,147,727,273 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hp's earnings, one of the primary drivers of an investment's value.

Hp Debt to Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Hp 
Net Income 
 = 
(Rev + Gain) 
-  
(Exp + Loss) 
6.29 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Hp 
D/E 
 = 
Total Debt 
Total Equity 
0.88 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Hp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hp will eventually generate negative long term returns. The profitability progress is the general direction of Hp's change in net profit over the period of time. It can combine multiple indicators of Hp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
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 Computer Hardware classification in the United States and is traded on New York Stock Exchange. It employs 51000 people.

Hp Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hp's important profitability drivers and their relationship over time.

Use Hp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hp will appreciate offsetting losses from the drop in the long position's value.

Hp Pair Trading

Hp Inc Pair Trading Analysis

The ability to find closely correlated positions to Hp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hp Inc to buy it.
The correlation of Hp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hp Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Hp position

In addition to having Hp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run ESG Investing Thematic Idea Now

ESG Investing
ESG Investing Theme
Sustainable investments that promote the conservation of the natural world, social resposibility, freindly employees policies and strong governance. The ESG Investing theme has 51 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize ESG Investing Theme or any other thematic opportunities.
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Please check Risk vs Return Analysis. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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To fully project Hp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hp Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hp's income statement, its balance sheet, and the statement of cash flows.
Potential Hp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hp investors may work on 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.