HELMERICH & PAYNE (HP) Stock Fundamental Analysis
NYSE:HP - New York Stock Exchange, Inc. - US4234521015 - Common Stock - Currency: USD
Taking everything into account, HP scores 4 out of 10 in our fundamental rating. HP was compared to 63 industry peers in the Energy Equipment & Services industry. While HP is still in line with the averages on profitability rating, there are concerns on its financial health. HP has a valuation in line with the averages, 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.
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
HP's Return On Assets of 3.00% is in line compared to the rest of the industry. HP outperforms 46.03% of its industry peers.
HP's Return On Equity of 7.40% is in line compared to the rest of the industry. HP outperforms 50.79% of its industry peers.
The Return On Invested Capital of HP (4.33%) is worse than 68.25% of its industry peers.
HP had an Average Return On Invested Capital over the past 3 years of 5.52%. This is below the industry average of 8.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 7.4% | ||
| ROIC | 4.33% |
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 Profit Margin of 7.04%. This is in the better half of the industry: HP outperforms 60.32% of its industry peers.
HP has a better Operating Margin (12.34%) than 63.49% of its industry peers.
In the last couple of years the Operating Margin of HP has grown nicely.
HP has a better Gross Margin (36.93%) than 73.02% of its industry peers.
HP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.34% | ||
| PM (TTM) | 7.04% | ||
| GM | 36.93% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HP is destroying 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.
Compared to 1 year ago, HP has a worse debt to assets ratio.
2.2 Solvency
HP has an Altman-Z score of 1.47. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HP (1.47) is worse than 63.49% of its industry peers.
The Debt to FCF ratio of HP is 29.89, which is on the high side as it means it would take HP, 29.89 years of fcf income to pay off all of its debts.
HP has a worse Debt to FCF ratio (29.89) than 63.49% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HP is somewhat dependend on debt financing.
HP's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. HP is outperformed by 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 29.89 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.6
WACC7.19%
2.3 Liquidity
HP has a Current Ratio of 1.68. This is a normal value and indicates that HP is financially healthy and should not expect problems in meeting its short term obligations.
HP has a Current ratio (1.68) which is comparable to the rest of the industry.
HP has a Quick Ratio of 1.32. 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 1.32 is on the low side compared to the rest of the industry. HP is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for HP have decreased strongly by -32.45% in the last year.
The Earnings Per Share has been growing by 14.67% on average over the past years. This is quite good.
HP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.23%.
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)-32.45%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%-95.83%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%47.69%
3.2 Future
HP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.78% yearly.
The Revenue is expected to grow by 5.03% on average over the next years.
EPS Next Y-33%
EPS Next 2Y-10.05%
EPS Next 3Y-6.38%
EPS Next 5Y-8.78%
Revenue Next Year33.76%
Revenue Next 2Y18.29%
Revenue Next 3Y10.45%
Revenue Next 5Y5.03%
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
Based on the Price/Earnings ratio of 6.30, the valuation of HP can be described as very cheap.
Based on the Price/Earnings ratio, HP is valued cheaper than 96.83% 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 26.25.
A Price/Forward Earnings ratio of 5.40 indicates a rather cheap valuation of HP.
Based on the Price/Forward Earnings ratio, HP is valued cheaper than 98.41% of the companies in the same industry.
HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.4 |
4.2 Price Multiples
68.25% of the companies in the same industry are more expensive than HP, based on the Enterprise Value to EBITDA ratio.
HP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.23 | ||
| EV/EBITDA | 4.23 |
4.3 Compensation for Growth
HP's earnings are expected to decrease with -6.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-10.05%
EPS Next 3Y-6.38%
5. Dividend
5.1 Amount
HP has a Yearly Dividend Yield of 6.53%, which is a nice return.
In the last 3 months the price of HP has falen by -42.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.86. HP pays more dividend than 93.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
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
61.89% of the earnings are spent on dividend by HP. This is not a sustainable payout ratio.
HP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP61.89%
EPS Next 2Y-10.05%
EPS Next 3Y-6.38%
15.25
-0.07 (-0.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.78%
Inst Owner Change-2.04%
Ins Owners3.77%
Ins Owner Change13.89%
Market Cap1.52B
Analysts70.77
Price Target30.24 (98.3%)
Short Float %8.47%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
Yearly Dividend1.7
Dividend Growth(5Y)-10.02%
DP61.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-46.85%
Min EPS beat(2)-95.02%
Max EPS beat(2)1.32%
EPS beat(4)2
Avg EPS beat(4)-21.76%
Min EPS beat(4)-95.02%
Max EPS beat(4)15.64%
EPS beat(8)4
Avg EPS beat(8)-6.78%
EPS beat(12)7
Avg EPS beat(12)37.57%
EPS beat(16)10
Avg EPS beat(16)30.89%
Revenue beat(2)1
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-8.1%
Max Revenue beat(2)5.1%
Revenue beat(4)2
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.5%
Revenue beat(12)4
Avg Revenue beat(12)-0.52%
Revenue beat(16)6
Avg Revenue beat(16)-0.54%
PT rev (1m)0%
PT rev (3m)-24.44%
EPS NQ rev (1m)-45.43%
EPS NQ rev (3m)-41.98%
EPS NY rev (1m)-18.02%
EPS NY rev (3m)-13.04%
Revenue NQ rev (1m)4.69%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.4 | ||
| P/S | 0.49 | ||
| P/FCF | 20.23 | ||
| P/OCF | 2.61 | ||
| P/B | 0.52 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 4.23 |
EPS(TTM)2.42
EY15.87%
EPS(NY)2.82
Fwd EY18.52%
FCF(TTM)0.75
FCFY4.94%
OCF(TTM)5.84
OCFY38.29%
SpS31.03
BVpS29.52
TBVpS20.92
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 7.4% | ||
| ROCE | 5.99% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 5.19% | ||
| OM | 12.34% | ||
| PM (TTM) | 7.04% | ||
| GM | 36.93% | ||
| FCFM | 2.43% |
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-Score3
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 29.89 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 110.99% | ||
| Cap/Sales | 16.39% | ||
| Interest Coverage | 17.08 | ||
| Cash Conversion | 69.42% | ||
| Profit Quality | 34.51% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.47 |
F-Score3
WACC7.19%
ROIC/WACC0.6
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)-32.45%
EPS 3YN/A
EPS 5Y14.67%
EPS Q2Q%-95.83%
EPS Next Y-33%
EPS Next 2Y-10.05%
EPS Next 3Y-6.38%
EPS Next 5Y-8.78%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%47.69%
Revenue Next Year33.76%
Revenue Next 2Y18.29%
Revenue Next 3Y10.45%
Revenue Next 5Y5.03%
EBIT growth 1Y-16.83%
EBIT growth 3YN/A
EBIT growth 5Y14.93%
EBIT Next Year100.78%
EBIT Next 3Y30%
EBIT Next 5Y16.08%
FCF growth 1Y-64.88%
FCF growth 3Y51.71%
FCF growth 5Y-13.76%
OCF growth 1Y7.25%
OCF growth 3Y71.22%
OCF growth 5Y-4.36%