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HP Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

HP has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for HP's Piotroski F-Score or its related term are showing as below:

HPQ' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of HP was 9. The lowest was 1. And the median was 6.


HP Piotroski F-Score Historical Data

The historical data trend for HP's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HP Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 5.00 4.00 6.00

HP Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 6.00 8.00 7.00

Competitive Comparison

For the Computer Hardware subindustry, HP's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

HP Piotroski F-Score Distribution

For the Hardware industry and Technology sector, HP's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where HP's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Apr22) TTM:Last Year (Apr21) TTM:
Net Income was 1108 + 3099 + 1086 + 1000 = $6,293 Mil.
Cash Flow from Operations was 1093 + 2848 + 1657 + 508 = $6,106 Mil.
Revenue was 15289 + 16675 + 17028 + 16490 = $65,482 Mil.
Gross Profit was 3388 + 3265 + 3385 + 3333 = $13,371 Mil.
Average Total Assets from the begining of this year (Apr21)
to the end of this year (Apr22) was
(34549 + 35523 + 38610 + 38912 + 39901) / 5 = $37499 Mil.
Total Assets at the begining of this year (Apr21) was $34,549 Mil.
Long-Term Debt & Capital Lease Obligation was $9,124 Mil.
Total Current Assets was $23,515 Mil.
Total Current Liabilities was $28,906 Mil.
Net Income was 734 + 668 + 1068 + 1228 = $3,698 Mil.

Revenue was 14294 + 15258 + 15646 + 15877 = $61,075 Mil.
Gross Profit was 2393 + 2679 + 3324 + 3440 = $11,836 Mil.
Average Total Assets from the begining of last year (Apr20)
to the end of last year (Apr21) was
(33773 + 34244 + 34681 + 34737 + 34549) / 5 = $34396.8 Mil.
Total Assets at the begining of last year (Apr20) was $33,773 Mil.
Long-Term Debt & Capital Lease Obligation was $5,784 Mil.
Total Current Assets was $20,091 Mil.
Total Current Liabilities was $28,029 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

HP's current Net Income (TTM) was 6,293. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

HP's current Cash Flow from Operations (TTM) was 6,106. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Apr21)
=6293/34549
=0.1821471

ROA (Last Year)=Net Income/Total Assets (Apr20)
=3698/33773
=0.10949575

HP's return on assets of this year was 0.1821471. HP's return on assets of last year was 0.10949575. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

HP's current Net Income (TTM) was 6,293. HP's current Cash Flow from Operations (TTM) was 6,106. ==> 6,106 <= 6,293 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr21 to Apr22
=9124/37499
=0.24331316

Gearing (Last Year: Apr21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr20 to Apr21
=5784/34396.8
=0.16815518

HP's gearing of this year was 0.24331316. HP's gearing of last year was 0.16815518. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Apr22)=Total Current Assets/Total Current Liabilities
=23515/28906
=0.81349893

Current Ratio (Last Year: Apr21)=Total Current Assets/Total Current Liabilities
=20091/28029
=0.71679332

HP's current ratio of this year was 0.81349893. HP's current ratio of last year was 0.71679332. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

HP's number of shares in issue this year was 1062. HP's number of shares in issue last year was 1247. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=13371/65482
=0.20419352

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=11836/61075
=0.19379451

HP's gross margin of this year was 0.20419352. HP's gross margin of last year was 0.19379451. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Apr21)
=65482/34549
=1.89533706

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Apr20)
=61075/33773
=1.80839724

HP's asset turnover of this year was 1.89533706. HP's asset turnover of last year was 1.80839724. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+1+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

HP has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

HP  (NYSE:HPQ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


HP Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of HP's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


HP Business Description

HP logo
Address
1501 Page Mill Road, Palo Alto, CA, USA, 94304
HP Inc. is a leading provider of computers, printers, and printer supplies. The company's three operating business segments are its personal systems, containing notebooks, desktops, and workstations; and its printing segment which contains supplies, consumer hardware, and commercial hardware; and corporate investments. In 2015, Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise and the Palo Alto, California-based company sells on a global scale.
Executives
Rucker Kim K.w. director KRAFT FOODS GROUP, INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Clemmer Richard L director P O BOX 34552 LAS VEGAS NV 89129
Miscik Judith A director 300 RENAISSANCE CENTER M/C: 482-C24-A68 DETROIT MI 48265
Faust Jonathan P officer: Global Controller C/O HP INC 1501 PAGE MILL ROAD PALO ALTO CA 94304
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Broussard Bruce D director 500 W. MAIN STREET C/O HUMANA LAW DEPT. LOUISVILLE KY 40202
Cho Alex officer: President, Personal Systems HP 1501 PAGE MILL ROAD PALO ALTO CA 94304
Anderson Harvey officer: Chief Legal Officer & Sec C/O HP INC. 1501 PAGE MILL RD PALO ALTO CA 94304
Ludgate Kristen M officer: Chief People Officer 3M COMPANY OFFICE OF GENERAL COUNSEL 3M CENTER ST. PAUL MN 55144-1000
Weiszhaar Barbara Barton officer: Acting Controller C/O HP INC. 1501 PAGE MILL ROAD PALO ALTO CA 93404
Mohr Cheryl A. officer: Acting Chief HR Officer C/O HP INC. 1501 PAGE MILL RD PALO ALTO CA 94304
Schell Christoph officer: Chief Commercial Officer 1501 PAGE MILL ROAD PALO ALTO CA 94304
Tran Tuan officer: President of Printing 1501 PAGE MILL ROAD PALO ALTO CA 94304
Matsuoka Yoky director HP 1501 PAGE MILL ROAD PALO ALTO CA 94304

HP Headlines

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