HP is down -6.52 percent despite market upswings over 3

This perspective will recap HP. I will focus on the cause of why it is still reasonable for the corporate body to generate above average margins and lots of cash flow. HP Invested Capital is very stable at the moment as compared to the last year. HP reported last year Invested Capital of 2.16 Billion. This year Invested Capital Average is likely to grow to about 2.7 B, though Working Capital is likely to grow to (340 M). The company Piotroski F Score is 5 - Healthy. Considering 30-days investment horizon, HP is expected to generate 0.84 times more return on investment than the market. However, the company is 1.19 times less risky than the market. It trades about -0.08 of its potential returns per unit of risk. The market is currently generating roughly -0.09 per unit of risk. Macroaxis considers HP to be relatively risky. HP holds Efficiency (Sharpe) Ratio of -0.0806, which attests that the entity had -0.0806% of return per unit of risk over the last 1 month. Macroaxis philosophy towards determining risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. HP exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out HP Market Risk Adjusted Performance of (0.61) and Risk Adjusted Performance of (0.48) to validate the risk estimate we provide.
Published over a year ago
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Reviewed by Vlad Skutelnik

HEWLETT PACKARD C has roughly 4.54 B in cash with 4.65 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.12. This firm dividends can provide a clue to current valuation of the stock. HP one year expected dividend income is about $0.42 per share. Now, let’s check HP Book Value Per Share. In accordance with recently published financial statements the book value per share of HP is about -0.7269 times. This is 101.77% lower than that of the Technology sector, and significantly lower than that of Computer Hardware industry, The Book Value Per Share for all stocks is 100.04% higher than HP.
Investing in HP, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding HP along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of HP's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as HP. Your research has to be compared to or analyzed against HP's peers to derive any actionable benefits. When done correctly, HP's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in HP Inc.

How important is HP's Liquidity

HP financial leverage refers to using borrowed capital as a funding source to finance HP Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HP financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to HP's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of HP's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between HP's total debt and its cash.

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.

HP Correlation with Peers

Investors in HP can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in HP Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of HP and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities HP is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of HP for more details

Going after HP Financials

The big decline in price over the last few months for HPmay raise some interest from investors. The Stock closed today at a share price of 14.205 on very low momentum in trading volume. The company executives failed to add value to investors and positioning the corporation supply of money to exploit market volatility in March. However, diversifying your holdings with HP or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 5.04. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the HP partners. HP is selling for 14.48. This is 6.52 percent decrease. Started trading at 14.48. HP Average Assets is very stable at the moment. Also, HP Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The recent value of HP Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 5,010,000,000.
 2017 2018 2019 2020 (projected)
Revenues USD58.47 B58.76 B52.88 B63.28 B
Revenues58.47 B58.76 B52.88 B58.76 B
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 USA and is traded on BATS Exchange. It employs 56000 people.
Revenues USDRevenues
On the whole, our analysis show that HP Almost neglects market trends. The corporate body is under valued and projects low probability of distress for the next 2 years. Our up-to-date 'Buy/Hold/Sell' recommendation on the corporate body is Cautious Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of HP Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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