Is the business good?
How good a business is HPQ?
HP Inc. earns 41% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
41%
Return on invested capital · cost of capital 9.0% · 32 points above what the capital costs: growth creates value
- Operating margin
- 5.3%
Operating margin · Computer Hardware median 4.9% · 12 months to Q2 2026
- Cash conversion
- 1.48×
Cash conversion · 1.06× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.1% |
| FY2021 | 8.4% |
| FY2022 | 7.2% |
| FY2023 | 6.4% |
| FY2024 | 7.1% |
| FY2025 | 5.7% |
Details›
- Gross margin12 months to Q2 2026
- 20%
- Operating margin12 months to Q2 2026
- 5.3%
- Net margin12 months to Q2 2026
- 4.5%
- Free cash flow margin
- 6.6%
- R&D as % of revenue
- 2.8%
- Revenue, trailing twelve months
- $57.4B
- Free cash flow, trailing twelve months
- $3.78B
- Net income, trailing twelve months
- $2.55B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 41%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Computer Hardware
Ranks #7 of 11 by Smart Score