While growth is established for NYSE:HP, the stock's valuation remains reasonable.

Last update: Oct 3, 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.

Growth Analysis for 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:

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.
The Revenue has grown by 60.56% in the past year. This is a very strong growth!
HP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 123.05% yearly.
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.

ChartMill's Evaluation of Valuation

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:

With a Price/Earnings ratio of 10.32, the valuation of HP can be described as very reasonable.
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.
Compared to an average S&P500 Price/Earnings ratio of 25.50, HP is valued rather cheaply.
HP is valuated reasonably with a Price/Forward Earnings ratio of 11.19.
When comparing the Price/Forward Earnings ratio of HP to the average of the S&P500 Index (18.66), we can say HP is valued slightly cheaper.
HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HP is cheaper than 76.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HP indicates a rather cheap valuation: HP is cheaper than 82.81% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HP has a very decent profitability rating, which may justify a higher PE ratio.
HP's earnings are expected to grow with 239.39% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NYSE:HP

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:

An Altman-Z score of 3.53 indicates that HP is not in any danger for bankruptcy at the moment.
HP's Altman-Z score of 3.53 is fine compared to the rest of the industry. HP outperforms 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.
HP's Debt to FCF ratio of 1.44 is amongst the best of the industry. HP outperforms 85.94% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that HP is not too dependend on debt financing.
The Debt to Equity ratio of HP (0.20) is better than 60.94% of its industry peers.
HP has a Current Ratio of 2.29. This indicates that HP is financially healthy and has no problem in meeting its short term obligations.
HP has a Current ratio of 2.29. This is in the better half 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.
The Quick ratio of HP (2.06) is better than 81.25% of its industry peers.

Profitability Assessment of NYSE:HP

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HP, the assigned 6 is a significant indicator of profitability:

HP has a Return On Assets of 9.14%. This is amongst the best in the industry. HP outperforms 84.38% of its industry peers.
Looking at the Return On Equity, with a value of 14.65%, HP is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
HP has a better Return On Invested Capital (10.35%) than 73.44% of its industry peers.
The Profit Margin of HP (13.95%) is better than 87.50% of its industry peers.
HP's Operating Margin of 18.00% is amongst the best of the industry. HP outperforms 84.38% of its industry peers.
The Gross Margin of HP (39.45%) is better than 79.69% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of HP for a complete fundamental analysis.

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.