HELMERICH & PAYNE (HP)
US4234521015 - Common Stock
Overall HP gets a fundamental rating of 5 out of 10. We evaluated HP against 60 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HP had positive earnings in the past year.
HP had a positive operating cash flow in the past year.
In multiple years HP reported negative net income over the last 5 years.
Each year in the past 5 years HP had a positive operating cash flow.
1.2 Ratios
HP has a Return On Assets (5.87%) which is in line with its industry peers.
The Return On Equity of HP (11.64%) is comparable to the rest of the industry.
HP has a Return On Invested Capital (6.04%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HP is below the industry average of 8.29%.
The last Return On Invested Capital (6.04%) for HP is above the 3 year average (5.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.64% | ||
| ROIC | 6.04% |
ROA(3y)5.3%
ROA(5y)-0.18%
ROE(3y)9.16%
ROE(5y)0.25%
ROIC(3y)5.52%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 12.31%, HP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
HP has a Operating Margin of 16.15%. This is in the better half of the industry: HP outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of HP has grown nicely.
With an excellent Gross Margin value of 40.70%, HP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
HP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.15% | ||
| PM (TTM) | 12.31% | ||
| GM | 40.7% |
OM growth 3YN/A
OM growth 5Y15.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.27%
GM growth 5Y2.78%
2. Health
2.1 Basic Checks
HP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HP has less shares outstanding
HP has less shares outstanding than it did 5 years ago.
HP has a worse debt/assets ratio than last year.
2.2 Solvency
HP has an Altman-Z score of 2.30. 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's Altman-Z score of 2.30 is fine compared to the rest of the industry. HP outperforms 61.67% of its industry peers.
The Debt to FCF ratio of HP is 9.40, which is on the high side as it means it would take HP, 9.40 years of fcf income to pay off all of its debts.
HP's Debt to FCF ratio of 9.40 is in line compared to the rest of the industry. HP outperforms 43.33% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that HP is somewhat dependend on debt financing.
The Debt to Equity ratio of HP (0.61) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 9.4 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.86
WACC7%
2.3 Liquidity
A Current Ratio of 2.67 indicates that HP has no problem at all paying its short term obligations.
HP's Current ratio of 2.67 is fine compared to the rest of the industry. HP outperforms 80.00% of its industry peers.
A Quick Ratio of 2.40 indicates that HP has no problem at all paying its short term obligations.
The Quick ratio of HP (2.40) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
HP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.90%.
HP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.67% yearly.
The Revenue has decreased by -4.03% in the past year.
Measured over the past years, HP shows a decrease in Revenue. The Revenue has been decreasing by -0.30% on average per year.
EPS 1Y (TTM)-15.9%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%10.14%
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%5.18%
3.2 Future
The Earnings Per Share is expected to grow by 9.21% on average over the next years. This is quite good.
Based on estimates for the next years, HP will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
EPS Next Y5.33%
EPS Next 2Y7.39%
EPS Next 3Y13.65%
EPS Next 5Y9.21%
Revenue Next Year19.13%
Revenue Next 2Y15.65%
Revenue Next 3Y5.96%
Revenue Next 5Y3.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.40 indicates a reasonable valuation of HP.
Based on the Price/Earnings ratio, HP is valued cheaply inside the industry as 88.33% of the companies are valued more expensively.
HP is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.88, the valuation of HP can be described as reasonable.
81.67% of the companies in the same industry are more expensive than HP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HP to the average of the S&P500 Index (23.82), we can say HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HP is valued a bit cheaper than the industry average as 71.67% of the companies are valued more expensively.
HP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.91 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HP does not grow enough to justify the current Price/Earnings ratio.
HP has a very decent profitability rating, which may justify a higher PE ratio.
HP's earnings are expected to grow with 13.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)0.71
EPS Next 2Y7.39%
EPS Next 3Y13.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, HP has a reasonable but not impressive dividend return.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.50. HP pays more dividend than 81.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, HP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of HP decreases each year by -10.02%.
HP has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HP decreased in the last 3 years.
Dividend Growth(5Y)-10.02%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
49.63% of the earnings are spent on dividend by HP. This is a bit on the high side, but may be sustainable.
DP49.63%
EPS Next 2Y7.39%
EPS Next 3Y13.65%
HELMERICH & PAYNE
NYSE:HP (11/22/2024, 1:57:54 PM)
36.3
+1.87 (+5.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 9.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.95
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.15% | ||
| PM (TTM) | 12.31% | ||
| GM | 40.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.67 | ||
| Quick Ratio | 2.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.9%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y5.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y31.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y