Despite its growth, NYSE:HP remains within the realm of affordability.

Last update: Oct 11, 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.

How do we evaluate the Growth for NYSE:HP?

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:HP boasts 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!
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.

Understanding NYSE:HP's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:HP has achieved a 8 out of 10:

Based on the Price/Earnings ratio of 10.62, the valuation of HP can be described as reasonable.
80.00% of the companies in the same industry are more expensive than HP, based on the Price/Earnings ratio.
HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.88.
A Price/Forward Earnings ratio of 11.51 indicates a reasonable valuation of HP.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.97, HP is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, HP is valued a bit cheaper than 75.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HP is valued cheaply inside the industry as 81.54% 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.
HP's earnings are expected to grow with 239.39% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:HP

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HP, the assigned 9 reflects its health status:

An Altman-Z score of 3.57 indicates that HP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.57, HP is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.44, HP belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
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 61.54% of its industry peers.
A Current Ratio of 2.29 indicates that HP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.29, HP is doing good in the industry, outperforming 70.77% of the companies in the same industry.
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 81.54% of its industry peers.

How do we evaluate the Profitability for NYSE:HP?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:HP, the assigned 6 is noteworthy for profitability:

HP has a better Return On Assets (9.14%) than 84.62% of its industry peers.
HP has a better Return On Equity (14.65%) than 73.85% 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 72.31% of its industry peers.
HP has a Profit Margin of 13.95%. This is amongst the best in the industry. HP outperforms 87.69% of its industry peers.
The Operating Margin of HP (18.00%) is better than 83.08% of its industry peers.
HP's Gross Margin of 39.45% is fine compared to the rest of the industry. HP outperforms 78.46% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of HP

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.