HELMERICH & PAYNE (HP) Stock Fundamental Analysis
USA - NYSE:HP - US4234521015 - Common Stock
26.26 USD
-0.42 (-1.57%)
26.26 USD
0 (0%)
Taking everything into account, HP scores 3 out of 10 in our fundamental rating. HP was compared to 60 industry peers in the Energy Equipment & Services industry. HP may be in some trouble as it scores bad on both profitability and health. HP has a expensive valuation and it also scores bad on growth.
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.
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: 71.67% 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 70.00% 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 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HP is below the industry average of 7.85%.
| 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 71.67% 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
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 1.71, we must say that HP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HP (1.71) is comparable to the rest of the 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.
The Debt to FCF ratio of HP (59.97) is worse than 65.00% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that HP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, HP is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 59.97 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.54
WACC7.26%
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 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
HP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.56%.
Measured over the past years, HP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.67% on average per year.
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 -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-71.13%
EPS Next 2Y-55.81%
EPS Next 3Y-38.62%
EPS Next 5Y-32.64%
Revenue Next Year34.46%
Revenue Next 2Y17.83%
Revenue Next 3Y11.61%
Revenue Next 5Y5.77%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.18, HP is valued correctly.
70.00% of the companies in the same industry are more expensive than HP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.11, HP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 38.53, HP can be considered very expensive at the moment.
HP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HP is more expensive than 70.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. HP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 38.53 |
4.2 Price Multiples
HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HP is cheaper than 73.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HP is valued a bit more expensive than the industry average as 61.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.45 | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
HP's earnings are expected to decrease with -38.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-55.81%
EPS Next 3Y-38.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, 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 2.93. HP pays more dividend than 88.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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
HP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
HP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-352.12%
EPS Next 2Y-55.81%
EPS Next 3Y-38.62%
26.26
-0.42 (-1.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change-0.77%
Ins Owners3.81%
Ins Owner Change5.36%
Market Cap2.61B
Revenue(TTM)3.43B
Net Income(TTM)-33391000
Analysts70
Price Target24.28 (-7.54%)
Short Float %8.02%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)11.22%
PT rev (3m)12.62%
EPS NQ rev (1m)14.48%
EPS NQ rev (3m)65.4%
EPS NY rev (1m)-11.96%
EPS NY rev (3m)-36.07%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 38.53 | ||
| P/S | 0.76 | ||
| P/FCF | 71.45 | ||
| P/OCF | 5.17 | ||
| P/B | 0.94 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 5.3 |
EPS(TTM)1.73
EY6.59%
EPS(NY)0.68
Fwd EY2.6%
FCF(TTM)0.37
FCFY1.4%
OCF(TTM)5.08
OCFY19.33%
SpS34.47
BVpS27.8
TBVpS21.15
PEG (NY)N/A
PEG (5Y)1.03
Graham Number32.89
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.71 |
F-Score2
WACC7.26%
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-71.13%
EPS Next 2Y-55.81%
EPS Next 3Y-38.62%
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 Year34.46%
Revenue Next 2Y17.83%
Revenue Next 3Y11.61%
Revenue Next 5Y5.77%
EBIT growth 1Y-21.48%
EBIT growth 3YN/A
EBIT growth 5Y14.93%
EBIT Next Year106.9%
EBIT Next 3Y24.88%
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%
HELMERICH & PAYNE / HP FAQ
What is the fundamental rating for HP stock?
ChartMill assigns a fundamental rating of 3 / 10 to HP.
Can you provide the valuation status for HELMERICH & PAYNE?
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 15.18 and the Price/Book (PB) ratio is 0.94.
Can you provide the financial health for HP stock?
The financial health rating of HELMERICH & PAYNE (HP) is 3 / 10.