HPQ: Dividends Are Not Enough

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About: HP Inc. (HPQ)
by: JP Research
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JP Research
Long/short equity, Growth, long-term horizon, macro
Summary

HP witnessed a very steady Q4 leading to overall top-line growth of 10%.

The company displays robust fundamentals through stable growth, strong operating metrics and solid cash flow generation.

Chances of rerating are probably low, however, its dividend yield provides some cushion.

We don't see enough growth to justify a long position at this juncture.

HP Inc. (HPQ) is turning out to be an interesting story of a company trading at seemingly low valuations, driven by a resurgence in its main geographic end-markets (the US and the Asia