HP Net Income vs. Total Debt
| 7HP Stock | EUR 34.17 0.09 0.26% |
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.
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HP Inc Total Debt 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 number one stock in net income category among its peers. It also is the top company in total debt category among its peers making up about 3.37 of Total Debt per Net Income. 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 Total Debt 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.
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| = | 3.2 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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 10.8 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
HP Total Debt vs Competition
HP Inc is the top company in total debt category among its peers. Total debt of Computer Hardware industry is presently estimated at about 42.73 Billion. HP totals roughly 10.8 Billion in total debt claiming about 25% of stocks in Computer Hardware industry.
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 INC operates under Computer Hardware classification in Germany and is traded on Frankfurt Stock Exchange. It employs 55000 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 instruments. 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.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.Did You Try This Idea?
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Chemicals Makers
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 39 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 Chemicals Makers Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in HP Stock
When determining whether HP Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if HP Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Hp Inc Stock. Highlighted below are key reports to facilitate an investment decision about Hp Inc Stock:Check out Trending Equities. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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.