Should You Think About Buying HP Inc. (NYSE:HPQ) Now?

As an investor, you're always on the lookout for undervalued stocks with strong growth potential. HP Inc. (NYSE:HPQ), the tech giant behind popular brands like HP and Compaq, might just be one of those opportunities. With a market cap of $31.55 billion and an enterprise value of $39.22 billion, HPQ is a significant player in the tech industry. But is it a good buy right now? Let's dive into the numbers and find out.

First, let's take a look at HPQ's valuation metrics. The company's trailing PE ratio is 11.97, which is lower than the industry average of 21.8x. This suggests that HPQ might be undervalued compared to its peers. Additionally, HPQ's forward PE ratio of 9.39 indicates that analysts expect the company's earnings to grow in the future, further supporting the potential for future growth. HPQ's PEG ratio of 3.62 is also lower than the industry average, indicating that the company's expected earnings growth is relatively high compared to its current valuation.

Now, let's consider HPQ's debt-to-equity ratio and interest coverage ratio. HPQ's debt-to-equity ratio is -8.25, which indicates that the company has more debt than equity. However, this ratio is not a perfect indicator of a company's financial health, as it does not take into account the company's cash flow or other assets. The company's interest coverage ratio is 9.32, which means that the company's earnings before interest and taxes (EBIT) are 9.32 times its interest expenses. This ratio indicates that the company has a strong ability to cover its interest payments with its operating income.

HPQ's free cash flow margin of 5.89% and FCF yield of 10.01% suggest that the company generates a significant amount of cash flow relative to its earnings. Additionally, HPQ's dividend yield of 3.44% and payout ratio of 41.20% indicate that the company is committed to returning cash to shareholders.

So, should you think about buying HP Inc. (NYSE:HPQ) now? Based on the company's valuation metrics, debt-to-equity ratio, interest coverage ratio, free cash flow margin, FCF yield, dividend yield, and payout ratio, HPQ appears to be an attractive investment opportunity. However, it's essential to conduct thorough research and consider your personal investment goals and risk tolerance before making any investment decisions. As always, it's crucial to stay informed about the company's latest developments and monitor its performance closely.