HELMERICH & PAYNE (HP) Stock Fundamental Analysis
USA - NYSE:HP - US4234521015 - Common Stock
21.85 USD
-1.38 (-5.94%)
21.8 USD
-0.05 (-0.23%)
Taking everything into account, HP scores 3 out of 10 in our fundamental rating. HP was compared to 61 industry peers in the Energy Equipment & Services industry. HP has a bad profitability rating. Also its financial health evaluation is rather negative. HP does not seem to be growing, but still is valued expensively.
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
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.
Looking at the Return On Equity, with a value of -1.21%, HP is doing worse than 70.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.94%, HP is doing worse than 67.21% of the companies in the same industry.
HP had an Average Return On Invested Capital over the past 3 years of 5.52%. This is below the industry average of 8.04%.
| 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's Operating Margin of 9.61% is in line compared to the rest of the industry. HP outperforms 49.18% of 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.
HP has less shares outstanding than it did 1 year ago.
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
HP has an Altman-Z score of 1.67. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
HP's Altman-Z score of 1.67 is in line compared to the rest of the industry. HP outperforms 40.98% of its industry peers.
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 has a worse Debt to FCF ratio (59.97) than 67.21% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that HP is somewhat dependend on debt financing.
HP's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. HP is outperformed by 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 59.97 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.56
WACC7.02%
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's Quick ratio of 1.43 is in line compared 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
HP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.56%.
The Earnings Per Share has been growing by 14.67% on average over the past years. This is quite good.
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
HP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.64% yearly.
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-67.2%
EPS Next 2Y-54.29%
EPS Next 3Y-37.76%
EPS Next 5Y-32.64%
Revenue Next Year34.18%
Revenue Next 2Y17.81%
Revenue Next 3Y11.48%
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.
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 12.63 indicates a correct valuation of HP.
Compared to the rest of the industry, the Price/Earnings ratio of HP indicates a somewhat cheap valuation: HP is cheaper than 63.93% of the companies listed in the same industry.
HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
HP is valuated quite expensively with a Price/Forward Earnings ratio of 29.97.
Based on the Price/Forward Earnings ratio, HP is valued a bit more expensive than the industry average as 70.49% of the companies are valued more cheaply.
HP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 29.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HP is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
HP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HP is more expensive than 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.45 | ||
| EV/EBITDA | 4.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as HP's earnings are expected to decrease with -37.76% in the coming years.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-54.29%
EPS Next 3Y-37.76%
5. Dividend
5.1 Amount
HP has a Yearly Dividend Yield of 4.37%, which is a nice return.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.26. HP pays more dividend than 88.52% of the companies in the same industry.
HP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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
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-54.29%
EPS Next 3Y-37.76%
21.85
-1.38 (-5.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change0%
Ins Owners3.81%
Ins Owner Change5.36%
Market Cap2.17B
Analysts70
Price Target22.44 (2.7%)
Short Float %7.84%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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)2.8%
PT rev (3m)-1.6%
EPS NQ rev (1m)13.14%
EPS NQ rev (3m)-36.93%
EPS NY rev (1m)-26.27%
EPS NY rev (3m)-36.58%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 29.97 | ||
| P/S | 0.63 | ||
| P/FCF | 59.45 | ||
| P/OCF | 4.3 | ||
| P/B | 0.79 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 4.95 |
EPS(TTM)1.73
EY7.92%
EPS(NY)0.73
Fwd EY3.34%
FCF(TTM)0.37
FCFY1.68%
OCF(TTM)5.08
OCFY23.23%
SpS34.47
BVpS27.8
TBVpS21.15
PEG (NY)N/A
PEG (5Y)0.86
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 | 1.67 |
F-Score2
WACC7.02%
ROIC/WACC0.56
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-67.2%
EPS Next 2Y-54.29%
EPS Next 3Y-37.76%
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 Year34.18%
Revenue Next 2Y17.81%
Revenue Next 3Y11.48%
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%