HPQ FCF Yield Analysis
Higher than 100% of TECHNOLOGY sector peers
Updated 29h ago·SEC filings & market data
Key Takeaway
HPQ's current free cash flow (FCF) yield of 12.3% means the company generates $0.123 in free cash per dollar of its stock price — a measure of how much cash the business throws off relative to what investors pay.
Sector Performance
100th percentileHPQ
12.5%
Sector Median
1.3%
Sector Avg
2.3%
Prior Period
12.3%(Jul 2026)
Deep Analysis
HPQ's current free cash flow (FCF) yield of 12.3% means the company generates $0.123 in free cash per dollar of its stock price — a measure of how much cash the business throws off relative to what investors pay.
This yield sits well above the sector median of 4.2%, placing HPQ in the 90th percentile among its peers. The trailing eight quarters show a decreasing trend: the metric has slipped from 13.1% to 12.6% to 12.3% over the most recent three periods, with a quarter-over-quarter decline of 2.4% (year-over-year change is not available). The combination of a high absolute yield with a declining pattern suggests investors are still getting above-average cash returns, but the erosion warrants attention as it may signal weakening cash generation or rising share prices. This metric supports the overall NEUTRAL verdict — the attractive level justifies a hold, while the downward trend prevents a more bullish stance.
Frequently Asked Questions
What does the FCF Yield tell investors about HPQ?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does HPQ's FCF Yield compare to its sector?
HPQ's FCF Yield of 12.5% compares to a TECHNOLOGY sector median of 1.3%, placing it in the 100th percentile.
Who are HPQ's closest peers by FCF Yield?
The closest TECHNOLOGY peers by FCF Yield include: KLAC (1.3%), LRCX (1.2%), HPE (1.0%), TXN (1.0%), MRVL (0.6%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master HPQ's Valuation
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12.5%
Sector Median
1.3%
Sector Avg
2.3%
How HPQ's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.