HELMERICH & PAYNE (HP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HP - US4234521015 - Common Stock
30.38 USD
-0.68 (-2.19%)
30.38 USD
0 (0%)
HP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. HP has a bad profitability rating. Also its financial health evaluation is rather negative. HP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HP had positive earnings in the past year.
In the past year HP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HP reported negative net income in multiple years.
Each year in the past 5 years HP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.47%, HP is doing worse than 75.81% of the companies in the same industry.
The Return On Equity of HP (-6.07%) is worse than 74.19% of its industry peers.
HP has a worse Return On Invested Capital (2.85%) than 66.13% of its industry peers.
HP had an Average Return On Invested Capital over the past 3 years of 6.24%. This is significantly below the industry average of 12.79%.
| 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
HP has a Operating Margin (6.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HP has grown nicely.
The Gross Margin of HP (31.44%) is better than 69.35% of its industry peers.
In the last couple of years the Gross Margin of HP has remained more or less at the same level.
| 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 1.79. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, HP is in line with its industry, outperforming 41.94% of the companies in the same industry.
HP has a debt to FCF ratio of 17.70. This is a negative value and a sign of low solvency as HP would need 17.70 years to pay back of all of its debts.
HP's Debt to FCF ratio of 17.70 is in line compared to the rest of the industry. HP outperforms 40.32% of its industry peers.
HP has a Debt/Equity ratio of 0.75. This is a neutral value indicating HP is somewhat dependend on debt financing.
HP has a worse Debt to Equity ratio (0.75) than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 17.7 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.36
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.80 indicates that HP should not have too much problems paying its short term obligations.
HP's Current ratio of 1.80 is in line compared to the rest of the industry. HP outperforms 43.55% of its industry peers.
HP has a Quick Ratio of 1.40. 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 Quick ratio value of 1.40, HP perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
HP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.64%.
The Earnings Per Share has been growing by 112.16% on average over the past years. This is a very strong growth
Looking at the last year, HP shows a very strong growth in Revenue. The Revenue has grown by 35.89%.
Measured over the past years, HP shows a quite strong growth in Revenue. The Revenue has been growing by 16.13% on average per year.
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
The Revenue is expected to decrease by -0.25% on average over the next years.
EPS Next Y-24.96%
EPS Next 2Y6.68%
EPS Next 3Y9.08%
EPS Next 5Y-15.9%
Revenue Next Year7.18%
Revenue Next 2Y5.53%
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
A Price/Earnings ratio of 31.65 indicates a quite expensive valuation of HP.
The rest of the industry has a similar Price/Earnings ratio as HP.
The average S&P500 Price/Earnings ratio is at 26.92. HP is around the same levels.
The Price/Forward Earnings ratio is 42.39, which means the current valuation is very expensive for HP.
HP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HP is more expensive than 62.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, HP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 42.39 |
4.2 Price Multiples
HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HP is cheaper than 74.19% 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 | 25.66 | ||
| EV/EBITDA | 5.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.68%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, 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 1.29. HP pays more dividend than 88.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of HP decreases each year by -15.87%.
HP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-15.87%
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.
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 2Y6.68%
EPS Next 3Y9.08%
30.38
-0.68 (-2.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change0%
Ins Owners3.42%
Ins Owner Change-10.95%
Market Cap2.99B
Revenue(TTM)3.75B
Net Income(TTM)-165.50M
Analysts70.77
Price Target30.94 (1.84%)
Short Float %6.7%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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)11
Avg EPS beat(16)25.9%
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)-0.22%
PT rev (1m)26.39%
PT rev (3m)41.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.93%
EPS NY rev (1m)38.79%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 42.39 | ||
| P/S | 0.8 | ||
| P/FCF | 25.66 | ||
| P/OCF | 5.51 | ||
| P/B | 1.1 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)0.96
EY3.16%
EPS(NY)0.72
Fwd EY2.36%
FCF(TTM)1.18
FCFY3.9%
OCF(TTM)5.51
OCFY18.15%
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 | 1.79 |
F-Score4
WACC7.84%
ROIC/WACC0.36
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-24.96%
EPS Next 2Y6.68%
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 Year7.18%
Revenue Next 2Y5.53%
Revenue Next 3Y3.5%
Revenue Next 5Y-0.25%
EBIT growth 1Y-47.54%
EBIT growth 3Y103%
EBIT growth 5YN/A
EBIT Next Year242.04%
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.
What is the valuation status of HELMERICH & PAYNE (HP) stock?
ChartMill assigns a valuation rating of 2 / 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 31.65 and the Price/Book (PB) ratio is 1.1.
Can you provide the financial health for HP stock?
The financial health rating of HELMERICH & PAYNE (HP) is 3 / 10.