HP Inc. (HPQ) Margin Analysis - Discounting Cash Flows

HP Inc.

HPQ (NYSE)

(%)

Models
HP Inc. Margin Analysis

# --- Years and Quarters
assumptions.set({
    "timeseries": "annual",
    "data": {
        "#years": """
            4
        """,
        "#quarters": """
            8
        """,
    },
    "titles": {
        "#years": "Years",
        "#quarters": "Quarters",
    },
    "properties": {
        "width": "responsive",
        "title": "Years and Quarters",
        "id": "component-1",
        "bindTo": None
    },
    "descriptions": {
        "#years": r"""
The number of historical years used to render the annual chart and tables.
        """,
        "#quarters": r"""
The number of historical quarters used to render the quarterly chart and tables.
        """,
    }
})

# Render description block
model.render_description({
    "data": r"""
## Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.
""",
    "properties": {
        "width": "responsive"
    }
})

# Render description block
model.render_description({
    "data": r"""
## Annual Section

The annual section uses annual data to calculate margins and growth rates.
""",
    "properties": {
        "width": "full"
    }
})

# --- Income Statement Margins
data.compute({
    "user:%revenueGrowthRate": """
        ( income:revenue / income:revenue:-1 ) - 1
    """,
    "user:%grossMargin": """
        income:grossProfit / income:revenue
    """,
    "user:%operatingMargin": """
        income:operatingIncome / income:revenue
    """,
    "user:%netMargin": """
        income:netIncome / income:revenue
    """,
}, forecast=0, timeseries="annual")

model.render_table({
    "timeseries": "annual",
    "data": {
        "income:revenue": "Revenue",
        "user:%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "user:%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "user:%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "user:%netMargin": "Net Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Income Statement Margins",
        "order": "descending",
        "number_format": "M",
        "include_ltm": True,
        "display_averages": False,
        "width": "responsive"
    }
})

# --- Cash Flow Statement Margins
data.compute({
    "user:%cashFromOperatingActivitiesMargin": """
        flow:netCashProvidedByOperatingActivities / income:revenue
    """,
    "user:%freeCashFlowMargin": """
        flow:freeCashFlow / income:revenue
    """,
    "user:%depreciationAndAmortizationMargin": """
        flow:depreciationAndAmortization / income:revenue
    """,
    "user:%capitalExpenditureMargin": """
        flow:capitalExpenditure / income:revenue
    """,
}, forecast=0, timeseries="annual")

model.render_table({
    "timeseries": "annual",
    "data": {
        "income:revenue": "Revenue",
        "flow:netCashProvidedByOperatingActivities": "Cash from Operating Activities",
        "user:%cashFromOperatingActivitiesMargin": "Cash from Operating Activities Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
        "flow:depreciationAndAmortization": "Depreciation and Amortization",
        "user:%depreciationAndAmortizationMargin": "Depreciation and Amortization Margin",
        "flow:capitalExpenditure": "Capital Expenditure",
        "user:%capitalExpenditureMargin": "Capital Expenditure Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Cash Flow Statement Margins",
        "order": "descending",
        "number_format": "M",
        "include_ltm": True,
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_chart({
    "timeseries": "annual",
    "data": {
        "user:%grossMargin": "Gross Margin",
        "user:%operatingMargin": "Operating Margin",
        "user:%netMargin": "Net Margin",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Annual Chart",
        "include_ltm": False,
        "set_editable": [],
        "hidden_keys": [],
        "bar_keys": ["user:%grossMargin", "user:%operatingMargin", "user:%netMargin", "user:%freeCashFlowMargin"],
        "width": "full"
    }
})

# Render description block
model.render_description({
    "data": r"""
## Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.
""",
    "properties": {
        "width": "full"
    }
})

model.render_table({
    "timeseries": "quarterly",
    "data": {
        "income:revenue": "Revenue",
        "user:%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "user:%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "user:%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "user:%netMargin": "Net Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Income Statement Margins",
        "order": "descending",
        "number_format": "M",
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_table({
    "timeseries": "quarterly",
    "data": {
        "income:revenue": "Revenue",
        "flow:netCashProvidedByOperatingActivities": "Cash from Operating Activities",
        "user:%cashFromOperatingActivitiesMargin": "Cash from Operating Activities Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
        "flow:depreciationAndAmortization": "Depreciation and Amortization",
        "user:%depreciationAndAmortizationMargin": "Depreciation and Amortization Margin",
        "flow:capitalExpenditure": "Capital Expenditure",
        "user:%capitalExpenditureMargin": "Capital Expenditure Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Cash Flow Statement Margins",
        "order": "descending",
        "number_format": "M",
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_chart({
    "timeseries": "quarterly",
    "data": {
        "user:%grossMargin": "Gross Margin",
        "user:%operatingMargin": "Operating Margin",
        "user:%netMargin": "Net Margin",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Quarterly Chart",
        "set_editable": [],
        "hidden_keys": [],
        "bar_keys": ["user:%grossMargin", "user:%operatingMargin", "user:%netMargin", "user:%freeCashFlowMargin"],
        "width": "full"
    }
})

Years and Quarters

Years Years The number of historical years used to render the annual chart and tables.	#
Quarters Quarters The number of historical quarters used to render the quarterly chart and tables.	#

Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.

Annual Section

The annual section uses annual data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD amounts except #	LTM Mar 14	2025 Oct 31	2024 Oct 31	2023 Oct 31	2022 Oct 31
Revenue	56,229	55,295	53,559	53,718	62,910
Revenue Growth Rate	1.69%	3.24%	-0.296%	-14.61%	-0.867%
Cost of Revenue	44,842	44,248	41,741	42,210	50,647
Gross Profit	11,329	11,047	11,818	11,508	12,263
Gross Margin	20.15%	19.98%	22.07%	21.42%	19.49%
Operating Income	3,205	3,624	3,818	3,456	4,559
Operating Margin	5.7%	6.55%	7.13%	6.43%	7.25%
Net Income	2,509	2,529	2,775	3,263	3,132
Net Margin	4.46%	4.57%	5.18%	6.07%	4.98%

Cash Flow Statement Margins

Monetary values in USD amounts except #	LTM Mar 14	2025 Oct 31	2024 Oct 31	2023 Oct 31	2022 Oct 31
Revenue	56,229	55,295	53,559	53,718	62,910
Cash from Operating Activities	3,706	3,697	3,749	3,571	4,463
Cash from Operating Activities Margin	6.59%	6.69%	7%	6.65%	7.09%
Free Cash Flow	2,878	2,800	3,157	2,962	3,672
Free Cash Flow Margin	5.12%	5.06%	5.89%	5.51%	5.84%
Depreciation and Amortization	933	916	830	850	780
Depreciation and Amortization Margin	1.66%	1.66%	1.55%	1.58%	1.24%
Capital Expenditure	-828	-897	-592	-609	-791
Capital Expenditure Margin	-1.47%	-1.62%	-1.1%	-1.13%	-1.26%

Annual Chart

Monetary values in USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Annual Chart", "timeseries": "annual", "series": [{"label": "Gross Margin", "mappingKey": "user:%grossMargin", "data": [{"l": "2022", "x": "2022-10-31", "y": 19.49}, {"l": "2023", "x": "2023-10-31", "y": 21.42}, {"l": "2024", "x": "2024-10-31", "y": 22.07}, {"l": "2025", "x": "2025-10-31", "y": 19.98}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Operating Margin", "mappingKey": "user:%operatingMargin", "data": [{"l": "2022", "x": "2022-10-31", "y": 7.25}, {"l": "2023", "x": "2023-10-31", "y": 6.43}, {"l": "2024", "x": "2024-10-31", "y": 7.13}, {"l": "2025", "x": "2025-10-31", "y": 6.55}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Net Margin", "mappingKey": "user:%netMargin", "data": [{"l": "2022", "x": "2022-10-31", "y": 4.98}, {"l": "2023", "x": "2023-10-31", "y": 6.07}, {"l": "2024", "x": "2024-10-31", "y": 5.18}, {"l": "2025", "x": "2025-10-31", "y": 4.57}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Free Cash Flow Margin", "mappingKey": "user:%freeCashFlowMargin", "data": [{"l": "2022", "x": "2022-10-31", "y": 5.84}, {"l": "2023", "x": "2023-10-31", "y": 5.51}, {"l": "2024", "x": "2024-10-31", "y": 5.89}, {"l": "2025", "x": "2025-10-31", "y": 5.06}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}], "editableDates": {}, "properties": {"display_table": false}, "width": "full"}

Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD amounts except #	2026 (Q1) Jan 31	2025 (Q4) Oct 31	2025 (Q3) Jul 31	2025 (Q2) Apr 30	2025 (Q1) Jan 31	2024 (Q4) Oct 31
Revenue	14,438	14,639	13,932	13,220	13,504	14,055
Revenue Growth Rate	-1.37%	5.08%	5.39%	-2.1%	-3.92%
Cost of Revenue	11,603	11,677	11,081	10,481	10,664	11,054
Gross Profit	2,835	2,904	2,851	2,739	2,840	3,001
Gross Margin	19.64%	19.84%	20.46%	20.72%	21.03%	21.35%
Operating Income	759	1,076	716	654	845	991
Operating Margin	5.26%	7.35%	5.14%	4.95%	6.26%	7.05%
Net Income	545	795	763	406	565	906
Net Margin	3.77%	5.43%	5.48%	3.07%	4.18%	6.45%

Cash Flow Statement Margins

Monetary values in USD amounts except #	2026 (Q1) Jan 31	2025 (Q4) Oct 31	2025 (Q3) Jul 31	2025 (Q2) Apr 30	2025 (Q1) Jan 31	2024 (Q4) Oct 31
Revenue	14,438	14,639	13,932	13,220	13,504	14,055
Cash from Operating Activities	383	1,624	1,661	38	374	1,623
Cash from Operating Activities Margin	2.65%	11.09%	11.92%	0.287%	2.77%	11.55%
Free Cash Flow	150	1,427	1,446	-145	72	1,470
Free Cash Flow Margin	1.04%	9.75%	10.38%	-1.1%	0.533%	10.46%
Depreciation and Amortization	214	208	306	205	197	208
Depreciation and Amortization Margin	1.48%	1.42%	2.2%	1.55%	1.46%	1.48%
Capital Expenditure	-233	-197	-215	-183	-302	-153
Capital Expenditure Margin	-1.61%	-1.35%	-1.54%	-1.38%	-2.24%	-1.09%

Quarterly Chart

Monetary values in USD

{"sectionId": "section-chart-2", "sectionType": "chart", "title": "Quarterly Chart", "timeseries": "quarterly", "series": [{"label": "Gross Margin", "mappingKey": "user:%grossMargin", "data": [{"l": "2024 (Q4)", "x": "2024-10-31", "y": 21.35}, {"l": "2025 (Q1)", "x": "2025-01-31", "y": 21.03}, {"l": "2025 (Q2)", "x": "2025-04-30", "y": 20.72}, {"l": "2025 (Q3)", "x": "2025-07-31", "y": 20.46}, {"l": "2025 (Q4)", "x": "2025-10-31", "y": 19.84}, {"l": "2026 (Q1)", "x": "2026-01-31", "y": 19.64}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Operating Margin", "mappingKey": "user:%operatingMargin", "data": [{"l": "2024 (Q4)", "x": "2024-10-31", "y": 7.05}, {"l": "2025 (Q1)", "x": "2025-01-31", "y": 6.26}, {"l": "2025 (Q2)", "x": "2025-04-30", "y": 4.95}, {"l": "2025 (Q3)", "x": "2025-07-31", "y": 5.14}, {"l": "2025 (Q4)", "x": "2025-10-31", "y": 7.35}, {"l": "2026 (Q1)", "x": "2026-01-31", "y": 5.26}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Net Margin", "mappingKey": "user:%netMargin", "data": [{"l": "2024 (Q4)", "x": "2024-10-31", "y": 6.45}, {"l": "2025 (Q1)", "x": "2025-01-31", "y": 4.18}, {"l": "2025 (Q2)", "x": "2025-04-30", "y": 3.07}, {"l": "2025 (Q3)", "x": "2025-07-31", "y": 5.48}, {"l": "2025 (Q4)", "x": "2025-10-31", "y": 5.43}, {"l": "2026 (Q1)", "x": "2026-01-31", "y": 3.77}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Free Cash Flow Margin", "mappingKey": "user:%freeCashFlowMargin", "data": [{"l": "2024 (Q4)", "x": "2024-10-31", "y": 10.46}, {"l": "2025 (Q1)", "x": "2025-01-31", "y": 0.533}, {"l": "2025 (Q2)", "x": "2025-04-30", "y": -1.1}, {"l": "2025 (Q3)", "x": "2025-07-31", "y": 10.38}, {"l": "2025 (Q4)", "x": "2025-10-31", "y": 9.75}, {"l": "2026 (Q1)", "x": "2026-01-31", "y": 1.04}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}], "editableDates": {}, "properties": {"display_table": false}, "width": "full"}