HELMERICH & PAYNE (HP)
US4234521015 - Common Stock
HP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 59 industry peers in the Energy Equipment & Services industry. HP has an excellent financial health rating, but there are some minor concerns on its profitability. HP is valued correctly, 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
With a decent Return On Assets value of 7.75%, HP is doing good in the industry, outperforming 72.88% of the companies in the same industry.
HP's Return On Equity of 12.16% is in line compared to the rest of the industry. HP outperforms 59.32% of its industry peers.
HP's Return On Invested Capital of 8.22% is in line compared to the rest of the industry. HP outperforms 59.32% 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
With an excellent Profit Margin value of 12.76%, HP belongs to the best of the industry, outperforming 83.05% of the companies in the same industry.
In the last couple of years the Profit Margin of HP has declined.
With a decent Operating Margin value of 15.40%, HP is doing good in the industry, outperforming 74.58% of the companies in the same industry.
In the last couple of years the Operating Margin of HP has grown nicely.
The Gross Margin of HP (39.94%) is better than 79.66% of its industry peers.
In the last couple of years the Gross Margin of HP has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HP is still creating some value.
The number of shares outstanding for HP has been reduced compared to 1 year ago.
HP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HP has about the same debt to assets ratio.
2.2 Solvency
HP has an Altman-Z score of 3.21. This indicates that HP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.21, HP is doing good in the industry, outperforming 77.97% of the companies in the same industry.
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 has a Debt to FCF ratio of 2.39. This is in the better half of the industry: HP outperforms 71.19% 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.
HP has a better Debt to Equity ratio (0.19) than 66.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.05
WACC7.87%
2.3 Liquidity
A Current Ratio of 2.12 indicates that HP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.12, HP is doing good in the industry, outperforming 62.71% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that HP should not have too much problems paying its short term obligations.
HP's Quick ratio of 1.87 is fine compared to the rest of the industry. HP outperforms 79.66% of its industry peers.
| 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.
HP shows a decrease in Revenue. In the last year, the revenue decreased by -4.28%.
Measured over the past years, HP shows a small growth in Revenue. The Revenue has been growing by 2.92% on average per year.
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.
Based on estimates for the next years, HP will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y-12.29%
EPS Next 2Y-3.7%
EPS Next 3Y0.84%
EPS Next 5Y6.52%
Revenue Next Year-4.16%
Revenue Next 2Y4.34%
Revenue Next 3Y8.36%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.26 indicates a reasonable valuation of HP.
Based on the Price/Earnings ratio, HP is valued cheaply inside the industry as 86.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 31.46, HP is valued rather cheaply.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of HP.
67.80% of the companies in the same industry are more expensive than HP, based on the Price/Forward Earnings ratio.
HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HP is valued a bit cheaper than 77.97% of the companies in the same industry.
HP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 4.46 |
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)0.1
EPS Next 2Y-3.7%
EPS Next 3Y0.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, HP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, HP pays a better dividend. On top of this HP pays more dividend than 81.36% of the companies listed in the same industry.
HP's Dividend Yield is a higher than the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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-3.7%
EPS Next 3Y0.84%
HELMERICH & PAYNE
NYSE:HP (10/22/2024, 1:27:39 PM)
35.09
+0.2 (+0.57%)
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 Cap3.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 10.26 | ||
| Fwd PE | 9.12 | ||
| 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)0.1
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-12.29%
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