HELMERICH & PAYNE (HP)

US4234521015 - Common Stock

37.6  +0.41 (+1.1%)

After market: 36.77 -0.83 (-2.21%)

Fundamental Rating

6

Overall HP gets a fundamental rating of 6 out of 10. We evaluated HP against 65 industry peers in the Energy Equipment & Services industry. HP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HP has a decent growth rate and is not valued too expensively.



6

1. Profitability

1.1 Basic Checks

HP had positive earnings in the past year.
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.
HP had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

HP has a better Return On Assets (8.00%) than 75.38% of its industry peers.
HP has a better Return On Equity (12.63%) than 63.08% of its industry peers.
HP has a Return On Invested Capital of 9.07%. This is in the better half of the industry: HP outperforms 70.77% of its industry peers.
Industry RankSector Rank
ROA 8%
ROE 12.63%
ROIC 9.07%
ROA(3y)1.17%
ROA(5y)-1.48%
ROE(3y)1.54%
ROE(5y)-2.26%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin of HP (12.88%) is better than 87.69% of its industry peers.
In the last couple of years the Profit Margin of HP has declined.
HP's Operating Margin of 16.65% is fine compared to the rest of the industry. HP outperforms 76.92% of its industry peers.
HP's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 40.07%, HP is doing good in the industry, outperforming 75.38% of the companies in the same industry.
HP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.65%
PM (TTM) 12.88%
GM 40.07%
OM growth 3YN/A
OM growth 5Y48.49%
PM growth 3YN/A
PM growth 5Y-4.7%
GM growth 3Y6.53%
GM growth 5Y3.66%

8

2. Health

2.1 Basic Checks

HP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HP has less shares outstanding
HP has less shares outstanding than it did 5 years ago.
HP has about the same debt/assets ratio as last year.

2.2 Solvency

HP has an Altman-Z score of 3.36. This indicates that HP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HP (3.36) is better than 75.38% of its industry peers.
The Debt to FCF ratio of HP is 1.53, which is an excellent value as it means it would take HP, only 1.53 years of fcf income to pay off all of its debts.
HP has a better Debt to FCF ratio (1.53) than 81.54% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that HP is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, HP is doing good in the industry, outperforming 67.69% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.53
Altman-Z 3.36
ROIC/WACC1.13
WACC8.03%

2.3 Liquidity

HP has a Current Ratio of 2.16. This indicates that HP is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.16, HP is doing good in the industry, outperforming 63.08% of the companies in the same industry.
HP has a Quick Ratio of 1.92. This is a normal value and indicates that HP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.92, HP is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.92

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.18% over the past year.
The Earnings Per Share has been growing by 106.70% on average over the past years. This is a very strong growth
HP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.94%.
The Revenue has been growing slightly by 2.92% on average over the past years.
EPS 1Y (TTM)16.18%
EPS 3YN/A
EPS 5Y106.7%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)2.94%
Revenue growth 3Y17.43%
Revenue growth 5Y2.92%
Sales Q2Q%-10.56%

3.2 Future

Based on estimates for the next years, HP will show a small growth in Earnings Per Share. The EPS will grow by 6.52% on average per year.
The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y-15.17%
EPS Next 2Y-4.19%
EPS Next 3Y0.76%
EPS Next 5Y6.52%
Revenue Next Year-5.21%
Revenue Next 2Y0.08%
Revenue Next 3Y1.87%
Revenue Next 5Y2.64%

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 stable.

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.47, which indicates a very decent valuation of HP.
Based on the Price/Earnings ratio, HP is valued cheaper than 86.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of HP to the average of the S&P500 Index (29.15), we can say HP is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.87, the valuation of HP can be described as very reasonable.
HP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.65, HP is valued rather cheaply.
Industry RankSector Rank
PE 10.47
Fwd PE 9.87

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 75.38% of the companies listed in the same industry.
HP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HP is cheaper than 73.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.39
EV/EBITDA 4.61

4.3 Compensation for Growth

The decent profitability rating of HP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-4.19%
EPS Next 3Y0.76%

4

5. Dividend

5.1 Amount

HP has a Yearly Dividend Yield of 2.69%.
HP's Dividend Yield is rather good when compared to the industry average which is at 3.24. HP pays more dividend than 81.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.69%

5.2 History

The dividend of HP decreases each year by -7.03%.
HP has been paying a dividend for at least 10 years, so it has a reliable track record.
HP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.03%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

51.70% of the earnings are spent on dividend by HP. This is a bit on the high side, but may be sustainable.
DP51.7%
EPS Next 2Y-4.19%
EPS Next 3Y0.76%

HELMERICH & PAYNE

NYSE:HP (7/12/2024, 7:04:00 PM)

After market: 36.77 -0.83 (-2.21%)

37.6

+0.41 (+1.1%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.71B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.69%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.47
Fwd PE 9.87
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.1
Profitability
Industry RankSector Rank
ROA 8%
ROE 12.63%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.65%
PM (TTM) 12.88%
GM 40.07%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.16
Quick Ratio 1.92
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.18%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-15.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.94%
Revenue growth 3Y17.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y