On the stock market since 1980, it operates in the world of energy. It has 15,700 employees. Now — the numbers.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
Average growth of 32% a year over the last 4 years. Red columns mark years that ended in a loss.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
There is growth, but not at top-of-the-class tempo.
Clearly above the class average — a step short of the very top.
Business Quality: Profit power and business quality trail similar companies in the sector.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades 37% below its peak. The market has trimmed its expectations for the company.
Over the last 3 years, sales grew about 22% a year on average.
The company sells $3.7B a year; the problem isn’t sales — it’s costs running above that number.
The average analyst price target is $39.83 — 17% above today’s price.
A loss of $165.1M against $3.7B in annual sales.
At the current pace of spending, the cash lasts about 1.5 years. After that, the company needs to find new money.
On our five-subject report card, HP sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: HP has solid sales but closed last year at a loss. The road back to profit runs through spending discipline.
Analysts’ average target sits above today’s price, yet the valuation grade (57/100) says the stock isn’t cheap.