HELMERICH & PAYNE (HP)
US4234521015 - Common Stock
Taking everything into account, HP scores 6 out of 10 in our fundamental rating. HP was compared to 63 industry peers in the Energy Equipment & Services industry. HP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HP was profitable.
HP had a positive operating cash flow in the past year.
In multiple years HP reported negative net income over the last 5 years.
HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HP has a better Return On Assets (7.75%) than 76.19% of its industry peers.
With a decent Return On Equity value of 12.16%, HP is doing good in the industry, outperforming 61.90% of the companies in the same industry.
HP has a better Return On Invested Capital (8.22%) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 12.16% | ||
| ROIC | 8.22% |
ROA(3y)1.17%
ROA(5y)-1.48%
ROE(3y)1.54%
ROE(5y)-2.26%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HP (12.76%) is better than 84.13% of its industry peers.
HP's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 15.40%, HP is doing good in the industry, outperforming 74.60% of the companies in the same industry.
In the last couple of years the Operating Margin of HP has grown nicely.
With a decent Gross Margin value of 39.94%, HP is doing good in the industry, outperforming 79.37% of the companies in the same industry.
HP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.4% | ||
| PM (TTM) | 12.76% | ||
| GM | 39.94% |
OM growth 3YN/A
OM growth 5Y48.49%
PM growth 3YN/A
PM growth 5Y-4.7%
GM growth 3Y6.53%
GM growth 5Y3.66%
2. Health
2.1 Basic Checks
HP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HP has been reduced compared to 1 year ago.
The number of shares outstanding for HP has been reduced compared to 5 years ago.
HP has about the same debt/assets ratio as last year.
2.2 Solvency
HP has an Altman-Z score of 3.05. This indicates that HP is financially healthy and has little risk of bankruptcy at the moment.
HP has a better Altman-Z score (3.05) than 76.19% of its industry peers.
The Debt to FCF ratio of HP is 2.39, which is a good value as it means it would take HP, 2.39 years of fcf income to pay off all of its debts.
HP's Debt to FCF ratio of 2.39 is fine compared to the rest of the industry. HP outperforms 73.02% of its industry peers.
HP has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HP (0.19) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.1
WACC7.46%
2.3 Liquidity
HP has a Current Ratio of 2.12. This indicates that HP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.12, HP is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
HP has a Quick Ratio of 1.87. This is a normal value and indicates that HP is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.87, HP is doing good in the industry, outperforming 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The earnings per share for HP have decreased strongly by -12.53% in the last year.
HP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.70% yearly.
The Revenue has decreased by -4.28% in the past year.
The Revenue has been growing slightly by 2.92% on average over the past years.
EPS 1Y (TTM)-12.53%
EPS 3YN/A
EPS 5Y106.7%
EPS Q2Q%-15.6%
Revenue 1Y (TTM)-4.28%
Revenue growth 3Y17.43%
Revenue growth 5Y2.92%
Sales Q2Q%-3.62%
3.2 Future
HP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y-12.22%
EPS Next 2Y-3.86%
EPS Next 3Y0.96%
EPS Next 5Y6.52%
Revenue Next Year-4.36%
Revenue Next 2Y4.37%
Revenue Next 3Y10.18%
Revenue Next 5Y2.64%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.87, the valuation of HP can be described as very reasonable.
HP's Price/Earnings ratio is rather cheap when compared to the industry. HP is cheaper than 92.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, HP is valued rather cheaply.
HP is valuated cheaply with a Price/Forward Earnings ratio of 7.91.
HP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HP is cheaper than 76.19% of the companies in the same industry.
HP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HP is valued cheaper than 82.54% of the companies in the same industry.
HP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.15 | ||
| EV/EBITDA | 3.94 |
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)0.08
EPS Next 2Y-3.86%
EPS Next 3Y0.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, HP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.44, HP pays a better dividend. On top of this HP pays more dividend than 82.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, HP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
The dividend of HP decreases each year by -7.03%.
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)-7.03%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HP pays out 50.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP50.47%
EPS Next 2Y-3.86%
EPS Next 3Y0.96%
HELMERICH & PAYNE
NYSE:HP (9/6/2024, 8:19:36 PM)
After market: 30.34 0 (0%)30.34
-0.32 (-1.04%)
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 Cap3.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 8.87 | ||
| Fwd PE | 7.91 | ||
| 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)N/A
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 12.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.4% | ||
| PM (TTM) | 12.76% | ||
| GM | 39.94% | ||
| 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.87 | ||
| 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)-12.53%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-12.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.28%
Revenue growth 3Y17.43%
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