NYSE:HP is showing good growth, while it is not too expensive.

Last update: Sep 25, 2023

Discover HELMERICH & PAYNE (NYSE:HP), an undervalued growth gem identified by our stock screener. NYSE:HP is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Assessment of NYSE:HP

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:HP scores a 7 out of 10:

The Earnings Per Share has grown by an impressive 503.09% over the past year.
The Revenue has grown by 60.56% in the past year. This is a very strong growth!
The Earnings Per Share is expected to grow by 123.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.62% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Assessing Valuation Metrics for NYSE:HP

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:HP was assigned a score of 8 for valuation:

The Price/Earnings ratio is 10.95, which indicates a very decent valuation of HP.
Based on the Price/Earnings ratio, HP is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of HP.
The average S&P500 Price/Forward Earnings ratio is at 18.97. HP is valued slightly cheaper when compared to this.
HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HP is cheaper than 73.44% of the companies in the same industry.
HP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HP is cheaper than 81.25% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HP may justify a higher PE ratio.
A more expensive valuation may be justified as HP's earnings are expected to grow with 239.39% in the coming years.

Understanding NYSE:HP's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:HP was assigned a score of 9 for health:

An Altman-Z score of 3.62 indicates that HP is not in any danger for bankruptcy at the moment.
HP has a better Altman-Z score (3.62) than 78.13% of its industry peers.
HP has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
HP has a Debt to FCF ratio of 1.44. This is amongst the best in the industry. HP outperforms 85.94% of its industry peers.
HP has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, HP is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
A Current Ratio of 2.29 indicates that HP has no problem at all paying its short term obligations.
HP has a better Current ratio (2.29) than 70.31% of its industry peers.
HP has a Quick Ratio of 2.06. This indicates that HP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.06, HP belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.

Profitability Assessment of NYSE:HP

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HP scores a 6 out of 10:

HP has a better Return On Assets (9.14%) than 84.38% of its industry peers.
HP has a Return On Equity of 14.65%. This is in the better half of the industry: HP outperforms 73.44% of its industry peers.
HP has a Return On Invested Capital of 10.35%. This is in the better half of the industry: HP outperforms 73.44% of its industry peers.
HP has a better Profit Margin (13.95%) than 87.50% of its industry peers.
HP has a better Operating Margin (18.00%) than 84.38% of its industry peers.
HP's Gross Margin of 39.45% is fine compared to the rest of the industry. HP outperforms 79.69% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of HP contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.