HELMERICH & PAYNE (HP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HP - US4234521015 - Common Stock
27.73 USD
+0.15 (+0.54%)
27.7 USD
-0.03 (-0.11%)
Overall HP gets a fundamental rating of 2 out of 10. We evaluated HP against 60 industry peers in the Energy Equipment & Services industry. HP has a bad profitability rating. Also its financial health evaluation is rather negative. HP is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years HP had a positive operating cash flow.
1.2 Ratios
HP has a Return On Assets of -0.49%. This is in the lower half of the industry: HP underperforms 73.33% of its industry peers.
With a Return On Equity value of -1.21%, HP is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
HP has a worse Return On Invested Capital (3.94%) than 61.67% 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 7.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.49% | ||
| ROE | -1.21% | ||
| ROIC | 3.94% |
ROA(3y)5.26%
ROA(5y)-0.21%
ROE(3y)9.09%
ROE(5y)0.21%
ROIC(3y)5.52%
ROIC(5y)N/A
1.3 Margins
HP has a Operating Margin (9.61%) which is comparable to the rest of the industry.
HP's Operating Margin has improved in the last couple of years.
The Gross Margin of HP (34.00%) is better than 71.67% of its industry peers.
HP's Gross Margin has improved in the last couple of years.
| 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 3Y23.26%
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.
The number of shares outstanding for HP has been increased 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
HP has an Altman-Z score of 1.73. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, HP is in line with its industry, outperforming 41.67% of the companies in the same industry.
The Debt to FCF ratio of HP is 59.97, which is on the high side as it means it would take HP, 59.97 years of fcf income to pay off all of its debts.
HP has a Debt to FCF ratio of 59.97. This is in the lower half of the industry: HP underperforms 65.00% 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.
The Debt to Equity ratio of HP (0.79) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 59.97 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.54
WACC7.23%
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.
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 has a Quick ratio of 1.43. This is comparable to the rest of the industry: HP outperforms 43.33% 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 -72.64%.
The Earnings Per Share has been growing by 112.16% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-72.64%
EPS 3Y112.16%
EPS 5YN/A
EPS Q2Q%-101.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%45.83%
3.2 Future
The Earnings Per Share is expected to decrease by -15.90% on average over the next years. This is quite bad
Based on estimates for the next years, HP will show a decrease in Revenue. The Revenue will decrease by -0.25% on average per year.
EPS Next Y-30.31%
EPS Next 2Y-8.07%
EPS Next 3Y14.18%
EPS Next 5Y-15.9%
Revenue Next Year3.25%
Revenue Next 2Y1.69%
Revenue Next 3Y3.06%
Revenue Next 5Y-0.25%
3.3 Evolution
The EPS 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
HP is valuated quite expensively with a Price/Earnings ratio of 28.89.
Based on the Price/Earnings ratio, HP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.15. HP is around the same levels.
The Price/Forward Earnings ratio is 41.67, which means the current valuation is very expensive for HP.
Based on the Price/Forward Earnings ratio, HP is valued a bit more expensive than 70.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. HP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.89 | ||
| Fwd PE | 41.67 |
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 73.33% of the companies listed in the same industry.
HP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HP is more expensive than 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.46 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HP's earnings are expected to grow with 14.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.07%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
HP has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, HP pays a better dividend. On top of this HP pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of HP decreases each year by -15.87%.
HP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-15.87%
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.
HP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-352.12%
EPS Next 2Y-8.07%
EPS Next 3Y14.18%
27.73
+0.15 (+0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change-0.46%
Ins Owners3.81%
Ins Owner Change5.36%
Market Cap2.76B
Revenue(TTM)N/A
Net Income(TTM)-33.39M
Analysts70
Price Target24.48 (-11.72%)
Short Float %7.39%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend1.02
Dividend Growth(5Y)-15.87%
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)9.09%
PT rev (3m)13.56%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)43.44%
EPS NY rev (1m)0.51%
EPS NY rev (3m)-35.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.89 | ||
| Fwd PE | 41.67 | ||
| P/S | 0.8 | ||
| P/FCF | 75.46 | ||
| P/OCF | 5.46 | ||
| P/B | 1 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)0.96
EY3.46%
EPS(NY)0.67
Fwd EY2.4%
FCF(TTM)0.37
FCFY1.33%
OCF(TTM)5.08
OCFY18.3%
SpS34.47
BVpS27.79
TBVpS21.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number24.5
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)5.26%
ROA(5y)-0.21%
ROE(3y)9.09%
ROE(5y)0.21%
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 3Y23.26%
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 | 1.73 |
F-Score2
WACC7.23%
ROIC/WACC0.54
Cap/Depr(3y)96.75%
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)-72.64%
EPS 3Y112.16%
EPS 5YN/A
EPS Q2Q%-101.32%
EPS Next Y-30.31%
EPS Next 2Y-8.07%
EPS Next 3Y14.18%
EPS Next 5Y-15.9%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%45.83%
Revenue Next Year3.25%
Revenue Next 2Y1.69%
Revenue Next 3Y3.06%
Revenue Next 5Y-0.25%
EBIT growth 1Y-21.75%
EBIT growth 3YN/A
EBIT growth 5Y14.92%
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-31.44%
OCF growth 3Y71.2%
OCF growth 5Y-4.36%
HELMERICH & PAYNE / HP FAQ
What is the fundamental rating for HP stock?
ChartMill assigns a fundamental rating of 2 / 10 to HP.
Can you provide the valuation status for HELMERICH & PAYNE?
ChartMill assigns a valuation rating of 1 / 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 28.89 and the Price/Book (PB) ratio is 1.
Can you provide the financial health for HP stock?
The financial health rating of HELMERICH & PAYNE (HP) is 3 / 10.