Financial Analysis of HP Company (HPQ)

By April, 2022, Berkshire revealed ownership of 121 million HP shares, in a filing with the SEC on Wednesday, making it the biggest stakeholder in the PC and printer maker, surpassing Vanguard.

HP shares surged 15% on Thursday, following the disclosure, boosting the value of Berkshire’s stake to $4.85 billion from $4.2 billion.

Below is the financial analysis of HP company:

HPQ

• PE ratio is at 6.4, very impressive number. 
• Dividend is 2.7% per year. 
• Net income is increasing. The quarterly income growth rate is 8.8%. 
• Compared with Dell, Dell has a PE of 6.4, pays 2.9% dividend and has a 7.2% quarterly growth rate. Dell and HP have similar financial rate. But HP has a higher net profit margin than Dell, which means its ability to make money, and is quite important.

• Other competitor like Lenovo, which has a PE of 18.4, pays 4% dividend, and has a 16.7% quarterly income growth, but with a low profit margin of 2.6%.

Overall, I would say HPQ and Dell are both worth for investments. Probably not expecting high growth rate due to the market, but they definitely provide good cash flow and stable returns (dividends).