HELMERICH & PAYNE (HP) Stock Fundamental Analysis
NYSE:HP - US4234521015 - Common Stock
19.46 USD
+0.51 (+2.69%)
HP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of HP have multiple concerns. HP has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
With a Return On Assets value of -0.49%, HP is not doing good in the industry: 70.49% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -1.21%, HP is doing worse than 68.85% of the companies in the same industry.
HP's Return On Invested Capital of 3.94% is on the low side compared to the rest of the industry. HP is outperformed by 67.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HP is below the industry average of 8.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.49% | ||
| ROE | -1.21% | ||
| ROIC | 3.94% |
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 Operating Margin, with a value of 9.61%, HP is in line with its industry, outperforming 49.18% of the companies in the same industry.
In the last couple of years the Operating Margin of HP has grown nicely.
HP has a better Gross Margin (34.00%) than 72.13% of its industry peers.
In the last couple of years the Gross Margin of HP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.61% | ||
| PM (TTM) | N/A | ||
| GM | 34% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HP is destroying value.
The number of shares outstanding for HP has been reduced compared to 1 year ago.
Compared to 5 years ago, HP has less shares outstanding
The debt/assets ratio for HP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that HP is in the distress zone and has some risk of bankruptcy.
HP has a Altman-Z score of 1.60. This is in the lower half of the industry: HP underperforms 60.66% of its industry peers.
HP has a debt to FCF ratio of 59.97. This is a negative value and a sign of low solvency as HP would need 59.97 years to pay back of all of its debts.
HP has a Debt to FCF ratio of 59.97. This is in the lower half of the industry: HP underperforms 65.57% of its industry peers.
HP has a Debt/Equity ratio of 0.79. This is a neutral value indicating HP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, HP is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 59.97 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.54
WACC7.27%
2.3 Liquidity
A Current Ratio of 1.84 indicates that HP should not have too much problems paying its short term obligations.
HP has a Current ratio (1.84) which is in line with its industry peers.
HP has a Quick Ratio of 1.43. This is a normal value and indicates that HP is financially healthy and should not expect problems in meeting its short term obligations.
HP's Quick ratio of 1.43 is in line compared to the rest of the industry. HP outperforms 44.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The earnings per share for HP have decreased strongly by -49.56% in the last year.
The Earnings Per Share has been growing by 14.67% on average over the past years. This is quite good.
The Revenue has grown by 25.92% in the past year. This is a very strong growth!
The Revenue has been decreasing by -0.30% on average over the past years.
EPS 1Y (TTM)-49.56%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%-76.09%
Revenue 1Y (TTM)25.92%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%46.16%
3.2 Future
The Earnings Per Share is expected to decrease by -31.26% on average over the next years. This is quite bad
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y-55.52%
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
EPS Next 5Y-31.26%
Revenue Next Year34.21%
Revenue Next 2Y18.51%
Revenue Next 3Y11.41%
Revenue Next 5Y5.65%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.25, the valuation of HP can be described as reasonable.
HP's Price/Earnings ratio is rather cheap when compared to the industry. HP is cheaper than 80.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. HP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 15.15, which indicates a correct valuation of HP.
HP's Price/Forward Earnings is on the same level as the industry average.
HP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HP is cheaper than 77.05% of the companies in the same industry.
62.30% of the companies in the same industry are cheaper than HP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.95 | ||
| EV/EBITDA | 4.46 |
4.3 Compensation for Growth
HP's earnings are expected to decrease with -32.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.58%, HP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.44, HP pays a better dividend. On top of this HP pays more dividend than 91.80% of the companies listed in the same industry.
HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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.
Dividend Growth(5Y)-10.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of HP are negative and hence is the payout ratio. HP will probably not be able to sustain this dividend level.
HP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-352.12%
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
NYSE:HP (8/27/2025, 1:02:53 PM)
19.46
+0.51 (+2.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.84%
Inst Owner Change-1.24%
Ins Owners3.81%
Ins Owner Change1.98%
Market Cap1.94B
Analysts68.89
Price Target21.83 (12.18%)
Short Float %9.15%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
Yearly Dividend1.7
Dividend Growth(5Y)-10.02%
DP-352.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-47.71%
Min EPS beat(2)-95.02%
Max EPS beat(2)-0.4%
EPS beat(4)1
Avg EPS beat(4)-25.77%
Min EPS beat(4)-95.02%
Max EPS beat(4)1.32%
EPS beat(8)3
Avg EPS beat(8)-8.92%
EPS beat(12)6
Avg EPS beat(12)-0.91%
EPS beat(16)9
Avg EPS beat(16)30.73%
Revenue beat(2)1
Avg Revenue beat(2)1.63%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)5.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.64%
Revenue beat(12)3
Avg Revenue beat(12)-0.89%
Revenue beat(16)6
Avg Revenue beat(16)-0.61%
PT rev (1m)1.26%
PT rev (3m)-27.81%
EPS NQ rev (1m)26.43%
EPS NQ rev (3m)-71.03%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)-33.61%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 15.15 | ||
| P/S | 0.56 | ||
| P/FCF | 52.95 | ||
| P/OCF | 3.83 | ||
| P/B | 0.7 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 4.46 |
EPS(TTM)1.73
EY8.89%
EPS(NY)1.28
Fwd EY6.6%
FCF(TTM)0.37
FCFY1.89%
OCF(TTM)5.08
OCFY26.08%
SpS34.47
BVpS27.8
TBVpS21.15
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.49% | ||
| ROE | -1.21% | ||
| ROCE | 5.44% | ||
| ROIC | 3.94% | ||
| ROICexc | 4.06% | ||
| ROICexgc | 4.58% | ||
| OM | 9.61% | ||
| PM (TTM) | N/A | ||
| GM | 34% | ||
| FCFM | 1.07% |
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-Score2
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 59.97 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 87.15% | ||
| Cap/Sales | 13.66% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 58.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.6 |
F-Score2
WACC7.27%
ROIC/WACC0.54
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)-49.56%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%-76.09%
EPS Next Y-55.52%
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
EPS Next 5Y-31.26%
Revenue 1Y (TTM)25.92%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%46.16%
Revenue Next Year34.21%
Revenue Next 2Y18.51%
Revenue Next 3Y11.41%
Revenue Next 5Y5.65%
EBIT growth 1Y-21.48%
EBIT growth 3YN/A
EBIT growth 5Y14.93%
EBIT Next Year95.79%
EBIT Next 3Y26.02%
EBIT Next 5Y13.81%
FCF growth 1Y-90.35%
FCF growth 3Y51.71%
FCF growth 5Y-13.76%
OCF growth 1Y-31.45%
OCF growth 3Y71.22%
OCF growth 5Y-4.36%