HELMERICH & PAYNE (HP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HP - US4234521015 - Common Stock
27.68 USD
-0.33 (-1.18%)
27.68 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to HP. HP was compared to 60 industry peers in the Energy Equipment & Services industry. HP may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, HP is valued expensive at the moment.
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.
HP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HP's Return On Assets of -2.47% is on the low side compared to the rest of the industry. HP is outperformed by 78.33% of its industry peers.
HP's Return On Equity of -6.07% is on the low side compared to the rest of the industry. HP is outperformed by 78.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.85%, HP is doing worse than 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HP is in line with the industry average of 7.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -6.07% | ||
| ROIC | 2.85% |
ROA(3y)4.39%
ROA(5y)1.36%
ROE(3y)7.01%
ROE(5y)2%
ROIC(3y)6.24%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of HP (6.26%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HP has grown nicely.
HP has a Gross Margin of 31.44%. This is in the better half of the industry: HP outperforms 68.33% of its industry peers.
HP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.26% | ||
| PM (TTM) | N/A | ||
| GM | 31.44% |
OM growth 3Y66.29%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.74%
GM growth 5Y-1.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HP is destroying value.
HP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HP has been reduced compared to 5 years ago.
The debt/assets ratio for HP has remained at the same level compared to a year ago.
2.2 Solvency
HP has an Altman-Z score of 1.75. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
HP has a Altman-Z score of 1.75. This is comparable to the rest of the industry: HP outperforms 41.67% of its industry peers.
The Debt to FCF ratio of HP is 17.70, which is on the high side as it means it would take HP, 17.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HP (17.70) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that HP is somewhat dependend on debt financing.
HP has a worse Debt to Equity ratio (0.75) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 17.7 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.37
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.80 indicates that HP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.80, HP is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that HP should not have too much problems paying its short term obligations.
HP has a worse Quick ratio (1.40) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for HP have decreased strongly by -72.64% in the last year.
The Earnings Per Share has been growing by 112.16% on average over the past years. This is a very strong growth
The Revenue has grown by 35.89% in the past year. This is a very strong growth!
HP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.13% yearly.
EPS 1Y (TTM)-72.64%
EPS 3Y112.16%
EPS 5YN/A
EPS Q2Q%-101.32%
Revenue 1Y (TTM)35.89%
Revenue growth 3Y22.08%
Revenue growth 5Y16.13%
Sales Q2Q%45.83%
3.2 Future
The Earnings Per Share is expected to decrease by -15.90% on average over the next years. This is quite bad
Based on estimates for the next years, HP will show a decrease in Revenue. The Revenue will decrease by -0.25% on average per year.
EPS Next Y-45.93%
EPS Next 2Y-8.75%
EPS Next 3Y9.08%
EPS Next 5Y-15.9%
Revenue Next Year6.55%
Revenue Next 2Y5.02%
Revenue Next 3Y3.5%
Revenue Next 5Y-0.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.83, the valuation of HP can be described as expensive.
Based on the Price/Earnings ratio, HP is valued a bit more expensive than 61.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.26. HP is around the same levels.
Based on the Price/Forward Earnings ratio of 53.61, the valuation of HP can be described as expensive.
Based on the Price/Forward Earnings ratio, HP is valued a bit more expensive than 68.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.68, HP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 53.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HP indicates a somewhat cheap valuation: HP is cheaper than 73.33% of the companies listed in the same industry.
HP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.38 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.75%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, 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 1.28. HP pays more dividend than 88.33% of the companies in the same industry.
HP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of HP decreases each year by -15.87%.
HP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-15.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of HP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-60.87%
EPS Next 2Y-8.75%
EPS Next 3Y9.08%
27.68
-0.33 (-1.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.44%
Inst Owner Change-0.46%
Ins Owners3.98%
Ins Owner Change11.83%
Market Cap2.73B
Revenue(TTM)3.75B
Net Income(TTM)-165.50M
Analysts70.77
Price Target28.36 (2.46%)
Short Float %7.21%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.02
Dividend Growth(5Y)-15.87%
DP-60.87%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-51.48%
Min EPS beat(2)-103.92%
Max EPS beat(2)0.95%
EPS beat(4)2
Avg EPS beat(4)-49.17%
Min EPS beat(4)-103.92%
Max EPS beat(4)1.32%
EPS beat(8)4
Avg EPS beat(8)-20.33%
EPS beat(12)7
Avg EPS beat(12)-9.03%
EPS beat(16)10
Avg EPS beat(16)25.45%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)0.87%
Revenue beat(4)2
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)5.1%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)3
Avg Revenue beat(12)-1.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.26%
PT rev (1m)16.81%
PT rev (3m)29.91%
EPS NQ rev (1m)5.32%
EPS NQ rev (3m)4.93%
EPS NY rev (1m)-22.41%
EPS NY rev (3m)-59.81%
Revenue NQ rev (1m)2.97%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 53.61 | ||
| P/S | 0.73 | ||
| P/FCF | 23.38 | ||
| P/OCF | 5.02 | ||
| P/B | 1 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)0.96
EY3.47%
EPS(NY)0.52
Fwd EY1.87%
FCF(TTM)1.18
FCFY4.28%
OCF(TTM)5.51
OCFY19.92%
SpS38.05
BVpS27.68
TBVpS20.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number24.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -6.07% | ||
| ROCE | 3.98% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.96% | ||
| ROICexgc | 3.35% | ||
| OM | 6.26% | ||
| PM (TTM) | N/A | ||
| GM | 31.44% | ||
| FCFM | 3.11% |
ROA(3y)4.39%
ROA(5y)1.36%
ROE(3y)7.01%
ROE(5y)2%
ROIC(3y)6.24%
ROIC(5y)N/A
ROICexc(3y)6.81%
ROICexc(5y)N/A
ROICexgc(3y)7.09%
ROICexgc(5y)N/A
ROCE(3y)8.72%
ROCE(5y)N/A
ROICexgc growth 3Y80.17%
ROICexgc growth 5YN/A
ROICexc growth 3Y74.64%
ROICexc growth 5YN/A
OM growth 3Y66.29%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.74%
GM growth 5Y-1.18%
F-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 17.7 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 68.21% | ||
| Cap/Sales | 11.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.75 |
F-Score4
WACC7.73%
ROIC/WACC0.37
Cap/Depr(3y)98.75%
Cap/Depr(5y)75.61%
Cap/Sales(3y)14.37%
Cap/Sales(5y)12.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-72.64%
EPS 3Y112.16%
EPS 5YN/A
EPS Q2Q%-101.32%
EPS Next Y-45.93%
EPS Next 2Y-8.75%
EPS Next 3Y9.08%
EPS Next 5Y-15.9%
Revenue 1Y (TTM)35.89%
Revenue growth 3Y22.08%
Revenue growth 5Y16.13%
Sales Q2Q%45.83%
Revenue Next Year6.55%
Revenue Next 2Y5.02%
Revenue Next 3Y3.5%
Revenue Next 5Y-0.25%
EBIT growth 1Y-47.54%
EBIT growth 3Y103%
EBIT growth 5YN/A
EBIT Next Year241.56%
EBIT Next 3Y54.24%
EBIT Next 5Y26.95%
FCF growth 1Y-38.51%
FCF growth 3YN/A
FCF growth 5Y-21.78%
OCF growth 1Y-20.7%
OCF growth 3Y32.4%
OCF growth 5Y0.15%
HELMERICH & PAYNE / HP FAQ
What is the fundamental rating for HP stock?
ChartMill assigns a fundamental rating of 3 / 10 to HP.
Can you provide the valuation status for HELMERICH & PAYNE?
ChartMill assigns a valuation rating of 1 / 10 to HELMERICH & PAYNE (HP). This can be considered as Overvalued.
What is the profitability of HP stock?
HELMERICH & PAYNE (HP) has a profitability rating of 3 / 10.
What are the PE and PB ratios of HELMERICH & PAYNE (HP) stock?
The Price/Earnings (PE) ratio for HELMERICH & PAYNE (HP) is 28.83 and the Price/Book (PB) ratio is 1.
Can you provide the financial health for HP stock?
The financial health rating of HELMERICH & PAYNE (HP) is 2 / 10.