Looking for growth without the hefty price tag? Consider NYSE:HP.

Last update: Nov 1, 2023

HELMERICH & PAYNE (NYSE:HP) was identified as an affordable growth stock by our stock screener. NYSE:HP is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Insights: NYSE:HP

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:HP has received a 7 out of 10:

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%.
Based on estimates for the next years, HP will show a very strong growth in Earnings Per Share. The EPS will grow by 113.53% on average per year.
Based on estimates for the next years, HP will show a quite strong growth in Revenue. The Revenue will grow by 8.84% on average per year.
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 Insights: NYSE:HP

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:HP has received a 8 out of 10:

Based on the Price/Earnings ratio of 10.12, the valuation of HP can be described as reasonable.
Based on the Price/Earnings ratio, HP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 22.86. HP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.69 indicates a reasonable valuation of HP.
When comparing the Price/Forward Earnings ratio of HP to the average of the S&P500 Index (18.20), 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 75.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HP is valued cheaper than 83.08% of the companies 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.
A more expensive valuation may be justified as HP's earnings are expected to grow with 244.36% in the coming years.

Looking at the Health

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 3.50 indicates that HP is not in any danger for bankruptcy at the moment.
HP has a better Altman-Z score (3.50) than 76.92% of its industry peers.
HP has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
HP has a better Debt to FCF ratio (1.44) than 86.15% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that HP is not too dependend on debt financing.
A Current Ratio of 2.29 indicates that HP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, HP is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
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.
The Quick ratio of HP (2.06) is better than 81.54% of its industry peers.

What does the Profitability looks like 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's Return On Assets of 9.14% is amongst the best of the industry. HP outperforms 83.08% of its industry peers.
HP has a better Return On Equity (14.65%) than 72.31% of its industry peers.
HP's Return On Invested Capital of 10.35% is fine compared to the rest 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.
HP's Operating Margin of 18.00% is amongst the best of the industry. HP outperforms 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.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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.