HELMERICH & PAYNE (HP)
US4234521015 - Common Stock
HP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Energy Equipment & Services industry. HP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HP has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: HP reported negative net income in multiple years.
In the past 5 years HP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.77%, HP belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
HP's Return On Equity of 15.66% is fine compared to the rest of the industry. HP outperforms 69.23% of its industry peers.
HP's Return On Invested Capital of 10.23% is fine compared to the rest of the industry. HP outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 15.66% | ||
| ROIC | 10.23% |
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
The Profit Margin of HP (15.27%) is better than 86.15% of its industry peers.
HP's Profit Margin has declined in the last couple of years.
HP has a Operating Margin of 18.09%. This is amongst the best in the industry. HP outperforms 84.62% of its industry peers.
HP's Operating Margin has improved in the last couple of years.
HP has a Gross Margin of 40.12%. This is in the better half of the industry: HP outperforms 76.92% of its industry peers.
In the last couple of years the Gross Margin of HP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.09% | ||
| PM (TTM) | 15.27% | ||
| GM | 40.12% |
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
HP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HP has been reduced compared to 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
An Altman-Z score of 3.55 indicates that HP is not in any danger for bankruptcy at the moment.
HP has a better Altman-Z score (3.55) than 81.54% of its industry peers.
The Debt to FCF ratio of HP is 1.41, which is an excellent value as it means it would take HP, only 1.41 years of fcf income to pay off all of its debts.
HP has a better Debt to FCF ratio (1.41) than 84.62% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that HP is not too dependend on debt financing.
The Debt to Equity ratio of HP (0.20) is better than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.21
WACC8.47%
2.3 Liquidity
A Current Ratio of 2.11 indicates that HP has no problem at all paying its short term obligations.
With a Current ratio value of 2.11, HP perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that HP should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.89, HP is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 141.57% over the past year.
HP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.70% yearly.
Looking at the last year, HP shows a quite strong growth in Revenue. The Revenue has grown by 19.47% in the last year.
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)141.57%
EPS 3YN/A
EPS 5Y106.7%
EPS growth Q2Q-12.61%
Revenue 1Y (TTM)19.47%
Revenue growth 3Y17.43%
Revenue growth 5Y2.92%
Revenue growth Q2Q-5.9%
3.2 Future
Based on estimates for the next years, HP will show a decrease in Earnings Per Share. The EPS will decrease by -0.70% on average per year.
Based on estimates for the next years, HP will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-10.55%
EPS Next 2Y-0.57%
EPS Next 3Y2.57%
EPS Next 5Y-0.7%
Revenue Next Year-4.03%
Revenue Next 2Y0.79%
Revenue Next 3Y2.14%
Revenue Next 5Y1.32%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.08, the valuation of HP can be described as very reasonable.
Based on the Price/Earnings ratio, HP is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
HP is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.86, the valuation of HP can be described as reasonable.
HP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HP is cheaper than 75.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HP to the average of the S&P500 Index (21.67), we can say HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.86 |
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 72.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HP indicates a somewhat cheap valuation: HP is cheaper than 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.32 | ||
| EV/EBITDA | 4.89 |
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)0.09
EPS Next 2Y-0.57%
EPS Next 3Y2.57%
5. Dividend
5.1 Amount
HP has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, HP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, HP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of HP decreases each year by -7.03%.
HP has paid a dividend for at least 10 years, which is 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
44.43% of the earnings are spent on dividend by HP. This is a bit on the high side, but may be sustainable.
The Dividend Rate of HP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP44.43%
EPS Next 2Y-0.57%
EPS Next 3Y2.57%
HELMERICH & PAYNE
NYSE:HP (4/25/2024, 3:10:02 PM)
After market: 40.44 0 (0%)40.44
-1.99 (-4.69%)
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 Cap4.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 10.08 | ||
| Fwd PE | 9.86 | ||
| 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)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 15.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.09% | ||
| PM (TTM) | 15.27% | ||
| GM | 40.12% | ||
| 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.89 | ||
| 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)
Growth
EPS 1Y (TTM)141.57%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.47%
Revenue growth 3Y17.43%
Revenue growth 5Y
Revenue growth 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