In the world of growth stocks, NYSE:HP shines as a value proposition.

Last update: Oct 2, 2023

Take a closer look at HELMERICH & PAYNE (NYSE:HP), an affordable growth stock uncovered by our stock screener. NYSE:HP boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Growth for NYSE:HP

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:HP was assigned a score of 7 for growth:

HP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 503.09%, which is quite impressive.
Looking at the last year, HP shows a very strong growth in Revenue. The Revenue has grown by 60.56%.
The Earnings Per Share is expected to grow by 123.05% on average over the next years. This is a very strong growth
Based on estimates for the next years, HP will show a quite strong growth in Revenue. The Revenue will grow by 10.62% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Valuation Metrics for NYSE:HP

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:HP has earned a 8 for valuation:

HP is valuated reasonably with a Price/Earnings ratio of 10.78.
HP's Price/Earnings ratio is rather cheap when compared to the industry. HP is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of HP to the average of the S&P500 Index (25.75), we can say HP is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.69, the valuation of HP can be described as very reasonable.
The average S&P500 Price/Forward Earnings ratio is at 18.85. HP is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HP indicates a somewhat cheap valuation: HP is cheaper than 76.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HP is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
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.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HP scores a 9 out of 10:

HP has an Altman-Z score of 3.60. This indicates that HP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HP (3.60) is better than 76.56% of its industry peers.
The Debt to FCF ratio of HP is 1.44, which is an excellent value as it means it would take HP, only 1.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HP (1.44) is better than 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.
With a decent Debt to Equity ratio value of 0.20, HP is doing good in 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's Current ratio of 2.29 is fine compared to the rest of the industry. HP outperforms 70.31% of its industry peers.
A Quick Ratio of 2.06 indicates that HP has no problem at all paying its short term obligations.
HP's Quick ratio of 2.06 is amongst the best of the industry. HP outperforms 81.25% of its industry peers.

Profitability Examination for NYSE:HP

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:HP has achieved a 6:

HP has a better Return On Assets (9.14%) than 84.38% of its industry peers.
HP's Return On Equity of 14.65% is fine compared to the rest 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 Profit Margin of 13.95%. This is amongst the best in the industry. HP outperforms 87.50% of its industry peers.
With an excellent Operating Margin value of 18.00%, HP belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
HP has a Gross Margin of 39.45%. This is in the better half 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.