HP Inc. (NYSE:HPQ)

Price to earnings (P/E) ratio

The P/E ratio exhibits notable volatility throughout the observed period. It increased from 10.48 in 2013 to a peak of 14.57 in 2014, followed by a sharp decline to 4.82 in 2015. Subsequently, it rebounded to 10.6 in 2016 and 13.51 in 2017, before decreasing again to 6.5 in 2018. This fluctuation suggests varying market expectations about profitability and earnings growth potential over these years.

Price to operating profit (P/OP) ratio

The P/OP ratio trends similarly to the P/E ratio, with values rising from 7.51 in 2013 to a peak of 10.16 in 2014, dropping significantly to 4.02 in 2015, then recovering to 7.45 in 2016 and 9.7 in 2017, before declining to 8.52 in 2018. The closer alignment with the P/E trend implies consistent market valuation shifts related to the company's operating profitability.

Price to sales (P/S) ratio

The P/S ratio shows a general upward movement from 0.48 in 2013 to 0.66 in both 2014 and 2017, with a notable dip to 0.21 in 2015. After 2015, the ratio recovers somewhat, ending at 0.59 in 2018. This indicates changing market valuation relative to sales, with 2015 representing an outlier year with significantly lower valuation relative to sales.

Price to book value (P/BV) ratio

The available P/BV ratio data is limited to 2013 through 2015. It started at 1.96 in 2013, increased to 2.73 in 2014, then declined sharply to 0.79 in 2015. Data for 2016 onward is missing, which precludes trend analysis beyond 2015. The drop in 2015 suggests a marked decrease in market valuation relative to the company's book value during that year.

Share Price

The share price exhibited significant volatility over the six-year period. It peaked in 2014 at $39.82 before experiencing a sharp decline to $12.26 in 2015. Subsequently, the share price demonstrated a gradual recovery, increasing each year to reach $22.29 by 2018. Despite the recovery, the 2018 share price remained below the earlier peak observed in 2014.

Earnings Per Share (EPS)

Earnings per share showed a relatively stable trend with mild fluctuations from 2013 through 2015, maintaining values around the mid-2 dollar range. However, in 2016, EPS declined considerably to $1.46, followed by a minor increase to $1.54 in 2017. A substantial rise occurred in 2018, with EPS reaching $3.43, the highest value in the period analyzed, suggesting improved profitability in that year.

Price-to-Earnings (P/E) Ratio

The P/E ratio followed an inconsistent pattern. It increased from 10.48 in 2013 to 14.57 in 2014 before dropping significantly to 4.82 in 2015, reflecting the steep decline in share price despite relatively stable EPS. The ratio then rose to 10.6 in 2016 and further to 13.51 in 2017, indicating higher valuations relative to earnings. In 2018, the ratio dropped again to 6.5, which may correlate with the marked increase in EPS, suggesting that share price increases lagged behind earnings growth during that year.

Share Price Trend

The share price exhibited considerable volatility over the analyzed periods. Initially, there was a notable increase from $28.07 in 2013 to a peak of $39.82 in 2014, followed by a significant decline to $12.26 in 2015. Subsequently, the share price recovered moderately, rising to $22.29 by 2018. Overall, the share price demonstrates fluctuations with a downward adjustment after 2014 and partial recovery thereafter.

Operating Profit Per Share (OPPS) Trend

Operating profit per share showed a declining trend from $3.74 in 2013 to a low of $2.08 in 2016. However, from 2016 onwards, there was a gradual recovery with OPPS increasing to $2.62 by 2018. Despite the recovery, the 2018 figure remains below the 2013 level, indicating partial but incomplete recuperation in operating profitability on a per-share basis.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio depicts fluctuations correlating with changes in share price and operating profit. It increased from 7.51 in 2013 to a peak of 10.16 in 2014, then sharply declined to 4.02 in 2015, reflecting the combination of a decrease in share price and a moderate drop in operating profit per share. The ratio subsequently rose again to 9.7 in 2017 before slightly falling to 8.52 in 2018. This pattern indicates varying market valuations relative to operating earnings, with the highest market valuation multiple occurring in 2014.

Summary of Insights

The financial data indicate that operating profitability faced challenges between 2013 and 2016, with a clear dip in operating profit per share. Market valuation, as reflected by the share price and price-to-operating profit ratio, showed pronounced volatility, suggesting changing investor sentiment or external market factors affecting the company's perceived value. While there was some recovery in both operating profitability and share price after 2016, figures had not returned to initial 2013 levels by 2018. The fluctuating P/OP ratio suggests periods of varying investor confidence relative to the company’s operating earnings capacity during the timeframe.

Share Price

The share price exhibited considerable volatility over the analyzed period. It increased significantly from $28.07 in 2013 to a peak of $39.82 in 2014, followed by a sharp decline to $12.26 in 2015. Subsequently, a gradual recovery was observed, with the share price rising steadily to $22.29 by 2018.

Sales Per Share

Sales per share remained relatively stable around the high 50s from 2013 to 2015, with values of $58.83, $60.77, and $57.68 respectively. However, there was a substantial drop in 2016 to $28.28, nearly halving the previous figures. After 2016, sales per share increased gradually, reaching $37.64 in 2018, but still below the levels seen prior to 2016.

Price-to-Sales Ratio (P/S)

The P/S ratio showed variation in response to the changes in share price and sales per share. It started at 0.48 in 2013, rose to 0.66 in 2014, and then declined sharply to 0.21 in 2015, reflecting the significant drop in share price relative to sales per share. The ratio increased again to 0.55 in 2016 and generally remained between 0.59 and 0.66 in the following years, indicating moderate valuation relative to sales during this period.

The financial data reveals several notable trends over the period from 2013 to 2018. The share price exhibited significant volatility, starting at $28.07 in 2013 and peaking at $39.82 in 2014. Thereafter, it experienced a sharp decline to $12.26 in 2015, followed by a gradual recovery to $22.29 by 2018.

In contrast, the book value per share (BVPS) showed relative stability initially, increasing slightly from $14.29 in 2013 to $15.50 in 2015. However, from 2016 onward, BVPS turned negative, reaching a low of -$2.28 in 2016 and remaining negative through 2018, albeit improving slightly to -$0.41 by that year.

The price-to-book value ratio (P/BV), available for the first three years, demonstrated a rising trend initially, moving from 1.96 in 2013 to a high of 2.73 in 2014. By 2015, this ratio dropped substantially to 0.79, with no subsequent data available to assess the trend beyond that point.

Share Price Trends

Marked by high volatility, an initial increase was followed by a steep decline and subsequent partial recovery.

Book Value Per Share (BVPS)

Stable and positive in early years, turning negative from 2016 onward, indicating possible financial challenges impacting equity per share.

Price-to-Book Ratio (P/BV)

Initial increase suggested market optimism, but the sharp decline in 2015 reflected decreased market valuation relative to book value; lack of data limits analysis beyond 2015.

Overall, the data reflect a period of financial instability and market uncertainty, with the decline in book value per share indicating deteriorating net asset values. The partial recovery in share price towards 2018 may suggest improving investor sentiment despite ongoing challenges reflected in equity metrics.