NYSE:HP is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Oct 18, 2023

Uncover the hidden value in HELMERICH & PAYNE (NYSE:HP) as our stock screening tool recommends it as an undervalued choice. NYSE:HP maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

What does the Valuation looks like for NYSE:HP

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:HP scores a 8 out of 10:

The Price/Earnings ratio is 11.23, which indicates a very decent valuation of HP.
76.92% 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 26.01.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.05, HP is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, HP is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
81.54% of the companies in the same industry are more expensive than HP, based on the Price/Free Cash Flow ratio.
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.

Profitability Examination for NYSE:HP

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:HP was assigned a score of 6 for profitability:

HP's Return On Assets of 9.14% is amongst the best of the industry. HP outperforms 84.62% of its industry peers.
With a decent Return On Equity value of 14.65%, HP is doing good in the industry, outperforming 73.85% of the companies in the same industry.
The Return On Invested Capital of HP (10.35%) is better than 72.31% of its industry peers.
Looking at the Profit Margin, with a value of 13.95%, HP belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
The Operating Margin of HP (18.00%) is better than 83.08% of its industry peers.
HP has a better Gross Margin (39.45%) than 78.46% of its industry peers.

Deciphering NYSE:HP's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HP has received a 9 out of 10:

HP has an Altman-Z score of 3.66. This indicates that HP is financially healthy and has little risk of bankruptcy at the moment.
HP's Altman-Z score of 3.66 is fine compared to the rest of the industry. HP outperforms 78.46% 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.
Looking at the Debt to FCF ratio, with a value of 1.44, HP belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
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 61.54% 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 Current ratio of 2.29. This is in the better half of the industry: HP outperforms 70.77% 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.
HP's Quick ratio of 2.06 is amongst the best of the industry. HP outperforms 81.54% of its industry peers.

Growth Insights: NYSE:HP

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:HP has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 503.09% over the past year.
Looking at the last year, HP shows a very strong growth in Revenue. The Revenue has grown by 60.56%.
HP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 123.05% yearly.
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.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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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.