Stock Analysis on Net
Stock Analysis on Net

HP Inc. (NYSE:HPQ)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

HP Inc., FCFE calculation

US$ in millions

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12 months ended: Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Net earnings
Net noncash charges
Changes in operating assets and liabilities, net of acquisitions
Net cash provided by operating activities
Investment in property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from (payment of) short-term borrowings with original maturities less than 90 days, net
Proceeds from short-term borrowings with original maturities greater than 90 days
Proceeds from debt, net of issuance costs
Payment of short term borrowings with original maturities greater than 90 days
Payment of debt
Free cash flow to equity (FCFE)

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

The analysis of the available financial data over the six-year period reveals notable fluctuations in cash flow metrics.

Net cash provided by operating activities
This metric exhibits a general declining trend from 2013 through 2016, starting at 11,608 million USD in 2013 and dropping to a low of 3,230 million USD in 2016. Thereafter, a modest recovery is observed with values increasing to 3,677 million USD in 2017 and further to 4,528 million USD in 2018. Despite this partial rebound, the figures in 2017 and 2018 remain significantly lower than earlier years, suggesting challenges in sustaining operating cash flow at previous levels.
Free cash flow to equity (FCFE)
The FCFE figures present a more volatile pattern. After nearly doubling from 3,466 million USD in 2013 to 6,309 million USD in 2014, and peaking at 8,276 million USD in 2015, there is a sharp decline in 2016 to 716 million USD. This is followed by a rise to 4,351 million USD in 2017 and a subsequent decrease to 1,915 million USD in 2018. Such fluctuations imply considerable variability in the company's cash flow available to equity holders, potentially influenced by changes in investment activities, financing decisions, or operational performance over these years.

In summary, the data reflects a volatile cash flow environment with a significant reduction in operating cash flow performance in the middle years and inconsistency in free cash flow to equity. The partial recoveries noted do not reach historical highs, indicating periods of financial pressure and variability in cash generation capacity.

Price to FCFE Ratio, Current

HP Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors1
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Dell Technologies Inc.
Super Micro Computer Inc.

Based on: 10-K (reporting date: 2018-10-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

HP Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
No. shares of common stock outstanding1
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2
FCFE per share3
Share price1, 4
Valuation Ratio
P/FCFE5
Benchmarks
P/FCFE, Competitors6
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Dell Technologies Inc.
Super Micro Computer Inc.

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2018 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =

4 Closing price as at the filing date of HP Inc. Annual Report.

5 2018 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =

6 Click competitor name to see calculations.

Share Price Trend
The share price experienced significant fluctuations over the analyzed period. It increased notably from $28.07 in 2013 to a peak of $39.82 in 2014, followed by a sharp decline to $12.26 in 2015. Subsequently, the price showed a moderate recovery, rising steadily to $22.29 by 2018, though still below its earlier peak.
Free Cash Flow to Equity (FCFE) per Share
FCFE per share exhibited volatile behavior throughout the years. It increased from $1.82 in 2013 to a high of $4.62 in 2015, indicating improving cash generation ability during this period. However, a dramatic decrease occurred in 2016, with FCFE per share dropping to $0.42. The figure rebounded to $2.64 in 2017 before declining again to $1.23 in 2018, suggesting inconsistency in free cash flow generation.
Price to FCFE Ratio (P/FCFE)
The P/FCFE ratio shows considerable variability reflecting changes in both the share price and FCFE per share. It decreased from 15.46 in 2013 to a low of 2.65 in 2015, indicating potentially undervalued conditions or strong free cash flow generation relative to share price at that time. However, a sharp increase to 36.94 in 2016 corresponded with the steep decline in FCFE per share, signaling a possible overvaluation or market uncertainty. The ratio then decreased again in 2017 to 7.84 before rising to 18.08 in 2018, emphasizing continued market fluctuations and varying investor sentiment towards the company’s cash flows.
Overall Financial Insights
The data reveals a period marked by significant volatility in valuation and cash flow metrics. The fluctuations in FCFE per share suggest variability in the company’s cash-generating capacity, which, combined with an unstable share price, led to highly variable P/FCFE ratios. Such trends may reflect operational challenges or changing market conditions impacting investor perceptions and financial performance consistency during the period studied.