HELMERICH & PAYNE (HP) Stock Fundamental Analysis
NYSE:HP - New York Stock Exchange, Inc. - US4234521015 - Common Stock - Currency: USD
Taking everything into account, HP scores 3 out of 10 in our fundamental rating. HP was compared to 62 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.
Each year in the past 5 years HP had a positive operating cash flow.
1.2 Ratios
HP has a Return On Assets of 3.00%. This is comparable to the rest of the industry: HP outperforms 45.16% of its industry peers.
HP has a Return On Equity of 7.40%. This is comparable to the rest of the industry: HP outperforms 50.00% of its industry peers.
HP's Return On Invested Capital of 4.33% is on the low side compared to the rest of the industry. HP is outperformed by 67.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HP is below the industry average of 8.42%.
| 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
With a Profit Margin value of 7.04%, HP perfoms like the industry average, outperforming 59.68% of the companies in the same industry.
HP has a Operating Margin of 12.34%. This is in the better half of the industry: HP outperforms 66.13% of its industry peers.
HP's Operating Margin has improved in the last couple of years.
HP's Gross Margin of 36.93% is fine compared to the rest of the industry. HP outperforms 72.58% 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.
Compared to 1 year ago, HP has less shares outstanding
HP has less shares outstanding than it did 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 61.29% 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's Debt to FCF ratio of 29.89 is on the low side compared to the rest of the industry. HP is outperformed by 62.90% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HP is somewhat dependend on debt financing.
HP has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: HP underperforms 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 29.89 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.6
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.68 indicates that HP should not have too much problems paying its short term obligations.
The Current ratio of HP (1.68) 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 has a worse Quick ratio (1.32) than 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
HP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.45%.
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 12.23% in the past year. This is quite good.
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
Based on estimates for the next years, HP will show a very negative growth in Earnings Per Share. The EPS will decrease by -24.34% on average per year.
The Revenue is expected to grow by 3.84% on average over the next years.
EPS Next Y-54.83%
EPS Next 2Y-35.94%
EPS Next 3Y-31.22%
EPS Next 5Y-24.34%
Revenue Next Year32.84%
Revenue Next 2Y17.62%
Revenue Next 3Y10.72%
Revenue Next 5Y3.84%
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 6.41, the valuation of HP can be described as very cheap.
96.77% of the companies in the same industry are more expensive than HP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.50. HP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.84, which indicates a very decent valuation of HP.
Based on the Price/Forward Earnings ratio, HP is valued a bit cheaper than 67.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, HP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 10.84 |
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 69.35% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.59 | ||
| EV/EBITDA | 4.27 |
4.3 Compensation for Growth
HP's earnings are expected to decrease with -31.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-35.94%
EPS Next 3Y-31.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.25%, HP is a good candidate for dividend investing.
The stock price of HP dropped by -24.62% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.63. HP pays more dividend than 93.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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.
The Dividend Rate of HP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP61.89%
EPS Next 2Y-35.94%
EPS Next 3Y-31.22%
15.52
-0.47 (-2.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change0%
Ins Owners3.81%
Ins Owner Change8.05%
Market Cap1.54B
Analysts69.23
Price Target21.56 (38.92%)
Short Float %8.07%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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)-11.42%
PT rev (3m)-38.62%
EPS NQ rev (1m)-25.61%
EPS NQ rev (3m)-57.91%
EPS NY rev (1m)-12.66%
EPS NY rev (3m)-44.74%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 10.84 | ||
| P/S | 0.5 | ||
| P/FCF | 20.59 | ||
| P/OCF | 2.66 | ||
| P/B | 0.53 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 4.27 |
EPS(TTM)2.42
EY15.59%
EPS(NY)1.43
Fwd EY9.23%
FCF(TTM)0.75
FCFY4.86%
OCF(TTM)5.84
OCFY37.62%
SpS31.03
BVpS29.52
TBVpS20.92
PEG (NY)N/A
PEG (5Y)0.44
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
WACC7.22%
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-54.83%
EPS Next 2Y-35.94%
EPS Next 3Y-31.22%
EPS Next 5Y-24.34%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y31.27%
Revenue growth 5Y-0.3%
Sales Q2Q%47.69%
Revenue Next Year32.84%
Revenue Next 2Y17.62%
Revenue Next 3Y10.72%
Revenue Next 5Y3.84%
EBIT growth 1Y-16.83%
EBIT growth 3YN/A
EBIT growth 5Y14.93%
EBIT Next Year100.78%
EBIT Next 3Y30%
EBIT Next 5Y14.68%
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%