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HELMERICH & PAYNE (HP) Stock Fundamental Analysis

NYSE:HP - New York Stock Exchange, Inc. - US4234521015 - Common Stock - Currency: USD

26.25  -0.83 (-3.06%)

After market: 26.26 +0.01 (+0.04%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to HP. HP was compared to 59 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of HP get a neutral evaluation. Nothing too spectacular is happening here. HP is cheap, but on the other hand it scores bad on growth. These ratings could make HP a good candidate for value investing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year HP was profitable.
HP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HP reported negative net income in multiple years.
In the past 5 years HP always reported a positive cash flow from operatings.
HP Yearly Net Income VS EBIT VS OCF VS FCFHP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

HP has a Return On Assets of 5.15%. This is in the better half of the industry: HP outperforms 60.34% of its industry peers.
Looking at the Return On Equity, with a value of 10.16%, HP is in the better half of the industry, outperforming 60.34% of the companies in the same industry.
HP has a Return On Invested Capital (5.71%) which is in line with its industry peers.
HP had an Average Return On Invested Capital over the past 3 years of 5.52%. This is below the industry average of 8.11%.
The last Return On Invested Capital (5.71%) for HP is above the 3 year average (5.52%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.15%
ROE 10.16%
ROIC 5.71%
ROA(3y)5.3%
ROA(5y)-0.18%
ROE(3y)9.16%
ROE(5y)0.25%
ROIC(3y)5.52%
ROIC(5y)N/A
HP Yearly ROA, ROE, ROICHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

HP has a Profit Margin of 10.87%. This is in the better half of the industry: HP outperforms 77.59% of its industry peers.
With a decent Operating Margin value of 15.40%, HP is doing good in the industry, outperforming 75.86% of the companies in the same industry.
HP's Operating Margin has improved in the last couple of years.
HP has a Gross Margin of 40.39%. This is amongst the best in the industry. HP outperforms 81.03% of its industry peers.
In the last couple of years the Gross Margin of HP has grown nicely.
Industry RankSector Rank
OM 15.4%
PM (TTM) 10.87%
GM 40.39%
OM growth 3YN/A
OM growth 5Y15.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.27%
GM growth 5Y2.78%
HP Yearly Profit, Operating, Gross MarginsHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HP is destroying value.
Compared to 1 year ago, HP has less shares outstanding
The number of shares outstanding for HP has been reduced compared to 5 years ago.
The debt/assets ratio for HP is higher compared to a year ago.
HP Yearly Shares OutstandingHP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
HP Yearly Total Debt VS Total AssetsHP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

HP has an Altman-Z score of 2.12. This is not the best score and indicates that HP is in the grey zone with still only limited risk for bankruptcy at the moment.
HP has a Altman-Z score of 2.12. This is in the better half of the industry: HP outperforms 62.07% of its industry peers.
The Debt to FCF ratio of HP is 8.77, which is on the high side as it means it would take HP, 8.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HP (8.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.60 indicates that HP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, HP is doing worse than 65.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 8.77
Altman-Z 2.12
ROIC/WACC0.74
WACC7.76%
HP Yearly LT Debt VS Equity VS FCFHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 2.81 indicates that HP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.81, HP is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
A Quick Ratio of 2.52 indicates that HP has no problem at all paying its short term obligations.
HP has a Quick ratio of 2.52. This is amongst the best in the industry. HP outperforms 84.48% of its industry peers.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.52
HP Yearly Current Assets VS Current LiabilitesHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

3

3. Growth

3.1 Past

HP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.45%.
Measured over the past years, HP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.67% on average per year.
HP shows a decrease in Revenue. In the last year, the revenue decreased by -2.59%.
The Revenue has been decreasing by -0.30% on average over the past years.
EPS 1Y (TTM)-19.45%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%-26.8%
Revenue 1Y (TTM)-2.59%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%0.02%

3.2 Future

Based on estimates for the next years, HP will show a decrease in Earnings Per Share. The EPS will decrease by -2.02% on average per year.
HP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.21% yearly.
EPS Next Y-22.96%
EPS Next 2Y-2.36%
EPS Next 3Y4.08%
EPS Next 5Y-2.02%
Revenue Next Year34.78%
Revenue Next 2Y22.88%
Revenue Next 3Y16.14%
Revenue Next 5Y11.21%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.
HP Yearly Revenue VS EstimatesHP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B 4B
HP Yearly EPS VS EstimatesHP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 2 -2 4 6

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.13 indicates a reasonable valuation of HP.
HP's Price/Earnings ratio is rather cheap when compared to the industry. HP is cheaper than 94.83% of the companies in the same industry.
HP is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.89, the valuation of HP can be described as very cheap.
Based on the Price/Forward Earnings ratio, HP is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, HP is valued rather cheaply.
Industry RankSector Rank
PE 8.13
Fwd PE 7.89
HP Price Earnings VS Forward Price EarningsHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

72.41% of the companies in the same industry are more expensive than HP, based on the Enterprise Value to EBITDA ratio.
65.52% of the companies in the same industry are more expensive than HP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.85
EV/EBITDA 4.51
HP Per share dataHP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

HP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-2.36%
EPS Next 3Y4.08%

5

5. Dividend

5.1 Amount

HP has a Yearly Dividend Yield of 3.69%.
The stock price of HP dropped by -27.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.56. HP pays more dividend than 89.66% of the companies in the same industry.
HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 3.69%

5.2 History

The dividend of HP decreases each year by -10.02%.
HP has paid a dividend for at least 10 years, which is a reliable track record.
HP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.02%
Div Incr Years2
Div Non Decr Years2
HP Yearly Dividends per shareHP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

HP pays out 50.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
HP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP50.48%
EPS Next 2Y-2.36%
EPS Next 3Y4.08%
HP Yearly Income VS Free CF VS DividendHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M
HP Dividend Payout.HP Dividend Payout, showing the Payout Ratio.HP Dividend Payout.PayoutRetained Earnings

HELMERICH & PAYNE

NYSE:HP (2/21/2025, 8:25:55 PM)

After market: 26.26 +0.01 (+0.04%)

26.25

-0.83 (-3.06%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)04-22 2025-04-22/amc
Inst Owners105.78%
Inst Owner Change-89.84%
Ins Owners3.77%
Ins Owner Change12.07%
Market Cap2.61B
Analysts74.62
Price Target40.02 (52.46%)
Short Float %10.39%
Short Ratio6.34
Dividend
Industry RankSector Rank
Dividend Yield 3.69%
Yearly Dividend1.7
Dividend Growth(5Y)-10.02%
DP50.48%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-14 2025-02-14 (0.25)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.83%
Min EPS beat(2)-8.98%
Max EPS beat(2)1.32%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-8.98%
Max EPS beat(4)15.64%
EPS beat(8)5
Avg EPS beat(8)7.13%
EPS beat(12)8
Avg EPS beat(12)49.5%
EPS beat(16)11
Avg EPS beat(16)37.43%
Revenue beat(2)0
Avg Revenue beat(2)-5.61%
Min Revenue beat(2)-8.1%
Max Revenue beat(2)-3.12%
Revenue beat(4)1
Avg Revenue beat(4)-3.09%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)0.76%
Revenue beat(8)1
Avg Revenue beat(8)-2.23%
Revenue beat(12)4
Avg Revenue beat(12)-0.8%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)-4.15%
PT rev (3m)-4.32%
EPS NQ rev (1m)-15.86%
EPS NQ rev (3m)-29.44%
EPS NY rev (1m)-15.49%
EPS NY rev (3m)-26.85%
Revenue NQ rev (1m)13.74%
Revenue NQ rev (3m)36.37%
Revenue NY rev (1m)14.97%
Revenue NY rev (3m)13.13%
Valuation
Industry RankSector Rank
PE 8.13
Fwd PE 7.89
P/S 0.95
P/FCF 12.85
P/OCF 3.9
P/B 0.89
P/tB 0.92
EV/EBITDA 4.51
EPS(TTM)3.23
EY12.3%
EPS(NY)3.33
Fwd EY12.67%
FCF(TTM)2.04
FCFY7.78%
OCF(TTM)6.72
OCFY25.61%
SpS27.74
BVpS29.65
TBVpS28.66
PEG (NY)N/A
PEG (5Y)0.55
Profitability
Industry RankSector Rank
ROA 5.15%
ROE 10.16%
ROCE 7.89%
ROIC 5.71%
ROICexc 6.33%
ROICexgc 6.46%
OM 15.4%
PM (TTM) 10.87%
GM 40.39%
FCFM 7.37%
ROA(3y)5.3%
ROA(5y)-0.18%
ROE(3y)9.16%
ROE(5y)0.25%
ROIC(3y)5.52%
ROIC(5y)N/A
ROICexc(3y)6.07%
ROICexc(5y)N/A
ROICexgc(3y)6.23%
ROICexgc(5y)N/A
ROCE(3y)7.62%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.57%
ROICexc growth 3YN/A
ROICexc growth 5Y15.88%
OM growth 3YN/A
OM growth 5Y15.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.27%
GM growth 5Y2.78%
F-Score6
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 8.77
Debt/EBITDA 2.15
Cap/Depr 115.58%
Cap/Sales 16.87%
Interest Coverage 28.27
Cash Conversion 80.79%
Profit Quality 67.8%
Current Ratio 2.81
Quick Ratio 2.52
Altman-Z 2.12
F-Score6
WACC7.76%
ROIC/WACC0.74
Cap/Depr(3y)96.76%
Cap/Depr(5y)67.81%
Cap/Sales(3y)14.64%
Cap/Sales(5y)11.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.45%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%-26.8%
EPS Next Y-22.96%
EPS Next 2Y-2.36%
EPS Next 3Y4.08%
EPS Next 5Y-2.02%
Revenue 1Y (TTM)-2.59%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%0.02%
Revenue Next Year34.78%
Revenue Next 2Y22.88%
Revenue Next 3Y16.14%
Revenue Next 5Y11.21%
EBIT growth 1Y-17.03%
EBIT growth 3YN/A
EBIT growth 5Y14.93%
EBIT Next Year112.9%
EBIT Next 3Y35.49%
EBIT Next 5Y20.96%
FCF growth 1Y69.09%
FCF growth 3Y51.71%
FCF growth 5Y-13.76%
OCF growth 1Y57.97%
OCF growth 3Y71.22%
OCF growth 5Y-4.36%