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

Last update: Oct 6, 2023

Consider HELMERICH & PAYNE (NYSE:HP) as an affordable growth stock, identified by our stock screening tool. NYSE:HP is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Examination 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:

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.

Valuation Assessment of NYSE:HP

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:HP boasts a 8 out of 10:

Based on the Price/Earnings ratio of 9.77, the valuation of HP can be described as reasonable.
Based on the Price/Earnings ratio, HP is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.26, HP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.60, the valuation of HP can be described as reasonable.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.51, HP is valued a bit cheaper.
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 81.25% 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.

Analyzing Health Metrics

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 3.45 indicates that HP is not in any danger for bankruptcy at the moment.
HP has a Altman-Z score of 3.45. This is in the better half 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.
HP has a Debt to Equity ratio of 0.20. This is in the better half of the industry: HP outperforms 60.94% of its industry peers.
A Current Ratio of 2.29 indicates that HP has no problem at all paying its short term obligations.
The Current ratio of HP (2.29) is better than 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 has a Quick ratio of 2.06. This is amongst the best in the industry. HP outperforms 81.25% of its industry peers.

Profitability Insights: 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's Return On Assets of 9.14% is amongst the best of the industry. HP outperforms 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.
With an excellent Profit Margin value of 13.95%, HP belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
HP's Operating Margin of 18.00% is amongst the best of the industry. HP outperforms 84.38% of its industry peers.
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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.