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Free Cash Flow Yield for HP Inc

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HPQ: HP Inc

HP Inc. provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company operates through three segments: P...

28.68 USD
Price
USD
Fair Value
Upside
27.43 - 39.80
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on HP Inc's Free Cash Flow Yield:

Oct 2016Oct 2018Oct 2020Oct 2022Oct 20245.0%10.0%15.0%20.0%

Performance Summary
  • HP's latest twelve months free cash flow yield is 12.1%
  • HP's free cash flow yield for fiscal years ending October 2020 to 2024 averaged 11.9%.
  • HP's operated at median free cash flow yield of 11.1% from fiscal years ending October 2020 to 2024.
  • Looking back at the last 5 years, HP's free cash flow yield peaked in October 2022 at 14.4%.
  • HP's free cash flow yield hit its 5-year low in October 2020 of 9.6%.
  • HP's free cash flow yield decreased in 2020 (9.6%, -43.4%), 2023 (11.1%, -22.8%), and 2024 (10.3%, -7.8%) and increased in 2021 (14.0%, +46.2%) and 2022 (14.4%, +2.6%).

How does HP Inc's Free Cash Flow Yield benchmark against competitors?

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We've identified the following companies as similar to HP Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: Free Cash Flow Yield

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fcf_yield_ltm
Slug
number
Datatype
text
Format
current
Default Period
FY, LTM
Periods Supported
Free
Plan

To view the full list of supported financial metrics please see Complete Metrics Listing.

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Free Cash Flow Yield

Measures amount of free cash flow for each dollar of equity (market capitalization).

Definition of Free Cash Flow Yield

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Free Cash Flow Yield (FCFY) measures amount of free cash flow for each dollar of market capitalization.

Free Cash Flow Yield = Levered Free Cash Flow / Market Capitalization

Applying this formula, HP’s Free Cash Flow Yield is calculated below:

Levered Free Cash Flow [ $3.266 B ]
(/) Market Capitalization [ $27.037 B ]
(=) Free Cash Flow Yield [ 12.1% ]

The tables below summarizes the trend in HP’s Free Cash Flow Yield over the last five years:

Date Free Cash Flow Market Cap Free Cash Flow Yield
2020-10-31 2.37 B $24.668 B 9.6%
2021-10-31 4.909 B $34.956 B 14.0%
2022-10-31 4.588 B $31.833 B 14.4%
2023-10-31 2.897 B $26.021 B 11.1%
2024-10-31 3.512 B $34.231 B 10.3%

Read More: Levered Free Cash Flow

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-177.5%-117.5%-57.5%48.0%100300500

The chart above depicts the distribution of free cash flow yield for companies operating in the Information Technology sector in the Developed economic region. Over 2,240 companies were considered in this analysis, and 2,158 had meaningful values. The average free cash flow yield of companies in the sector is -3.2% with a standard deviation of 25.5%.

HP Inc's Free Cash Flow Yield of 12.1% ranks in the 86.8% percentile for the sector. The following table provides additional summary stats:

Free Cash Flow Yield In The Information Technology Sector
Economic Risk RegionDeveloped
Total Constituents2,248
Included Constituents2,158
Min-176.8%
Max43.4%
Median2.8%
Mean-3.2%
Standard Deviation25.5%

You can find companies with similar free cash flow yield using this stock screener.

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