HELMERICH & PAYNE (HP) Stock Fundamental Analysis
USA - NYSE:HP - US4234521015 - Common Stock
20.54 USD
-0.69 (-3.25%)
20.541 USD
0 (0%)
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
In the past year HP was profitable.
In the past year HP had a positive cash flow from operations.
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 Return On Assets of -0.49%. This is in the lower half of the industry: HP underperforms 72.13% of its industry peers.
With a Return On Equity value of -1.21%, HP is not doing good in the industry: 70.49% of the companies in the same industry are doing better.
HP has a worse Return On Invested Capital (3.94%) than 67.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
HP has a Operating Margin (9.61%) which is in line with its industry peers.
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.
Compared to 1 year ago, HP has less shares outstanding
HP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HP has a worse debt to assets ratio.
2.2 Solvency
HP has an Altman-Z score of 1.64. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.64, HP perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
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's Debt to FCF ratio of 59.97 is on the low side compared to the rest of the industry. HP is outperformed by 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 | 1.64 |
ROIC/WACC0.55
WACC7.13%
2.3 Liquidity
HP has a Current Ratio of 1.84. 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 Current ratio value of 1.84, HP perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that HP should not have too much problems paying its short term obligations.
HP has a Quick ratio of 1.43. This is comparable to the rest of the industry: HP outperforms 45.90% 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.
HP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.67% yearly.
The Revenue has grown by 25.92% in the past year. This is a very strong growth!
Measured over the past years, HP shows a decrease in Revenue. The Revenue has been decreasing by -0.30% on average per year.
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 -32.64% on average over the next years. This is quite bad
Based on estimates for the next years, HP will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y-55.52%
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
EPS Next 5Y-32.64%
Revenue Next Year34.07%
Revenue Next 2Y17.93%
Revenue Next 3Y11.51%
Revenue Next 5Y5.77%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.87 indicates a reasonable valuation of HP.
HP's Price/Earnings ratio is a bit cheaper when compared to the industry. HP is cheaper than 72.13% of the companies in the same industry.
HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
HP is valuated correctly with a Price/Forward Earnings ratio of 15.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, HP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
72.13% of the companies in the same industry are more expensive than HP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HP indicates a slightly more expensive valuation: HP is more expensive than 62.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.89 | ||
| EV/EBITDA | 4.72 |
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)0.81
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.78%, HP is a good candidate for dividend investing.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.34. HP pays more dividend than 90.16% of the companies in the same industry.
HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
The dividend of HP decreases each year by -10.02%.
HP has paid a dividend for at least 10 years, which is 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.
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-352.12%
EPS Next 2Y-39.33%
EPS Next 3Y-32.72%
20.54
-0.69 (-3.25%)
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 Change-0.09%
Market Cap2.04B
Analysts68.89
Price Target21.83 (6.28%)
Short Float %7.55%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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)1
Avg EPS beat(2)-47.03%
Min EPS beat(2)-95.02%
Max EPS beat(2)0.95%
EPS beat(4)2
Avg EPS beat(4)-25.43%
Min EPS beat(4)-95.02%
Max EPS beat(4)1.32%
EPS beat(8)4
Avg EPS beat(8)-8.75%
EPS beat(12)7
Avg EPS beat(12)-0.8%
EPS beat(16)10
Avg EPS beat(16)30.82%
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)-10.3%
EPS NQ rev (1m)31.87%
EPS NQ rev (3m)-65.73%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)-33.61%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 15.99 | ||
| P/S | 0.6 | ||
| P/FCF | 55.89 | ||
| P/OCF | 4.05 | ||
| P/B | 0.74 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)1.73
EY8.42%
EPS(NY)1.28
Fwd EY6.25%
FCF(TTM)0.37
FCFY1.79%
OCF(TTM)5.08
OCFY24.71%
SpS34.47
BVpS27.8
TBVpS21.15
PEG (NY)N/A
PEG (5Y)0.81
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 | 1.64 |
F-Score2
WACC7.13%
ROIC/WACC0.55
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-32.64%
Revenue 1Y (TTM)25.92%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%46.16%
Revenue Next Year34.07%
Revenue Next 2Y17.93%
Revenue Next 3Y11.51%
Revenue Next 5Y5.77%
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%