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HELMERICH & PAYNE (HP) Stock Fundamental Analysis

NYSE:HP - New York Stock Exchange, Inc. - US4234521015 - Common Stock - Currency: USD

15.52  -0.47 (-2.94%)

After market: 15.6365 +0.12 (+0.75%)

Fundamental Rating

3

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.


Dividend Valuation Growth Profitability Health

4

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.
HP Yearly Net Income VS EBIT VS OCF VS FCFHP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

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 RankSector 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
HP Yearly ROA, ROE, ROICHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

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 RankSector 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%
HP Yearly Profit, Operating, Gross MarginsHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

2

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.
HP Yearly Shares OutstandingHP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
HP Yearly Total Debt VS Total AssetsHP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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 RankSector Rank
Debt/Equity 0.76
Debt/FCF 29.89
Altman-Z 1.47
ROIC/WACC0.6
WACC7.22%
HP Yearly LT Debt VS Equity VS FCFHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

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 RankSector Rank
Current Ratio 1.68
Quick Ratio 1.32
HP Yearly Current Assets VS Current LiabilitesHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

3

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.
HP Yearly Revenue VS EstimatesHP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
HP Yearly EPS VS EstimatesHP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 2 -2 4 6

5

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 RankSector Rank
PE 6.41
Fwd PE 10.84
HP Price Earnings VS Forward Price EarningsHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 20.59
EV/EBITDA 4.27
HP Per share dataHP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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

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 RankSector 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
HP Yearly Dividends per shareHP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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%
HP Yearly Income VS Free CF VS DividendHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M
HP Dividend Payout.HP Dividend Payout, showing the Payout Ratio.HP Dividend Payout.PayoutRetained Earnings

HELMERICH & PAYNE

NYSE:HP (7/18/2025, 8:04:00 PM)

After market: 15.6365 +0.12 (+0.75%)

15.52

-0.47 (-2.94%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-06 2025-08-06/amc
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 RankSector Rank
Dividend Yield 6.25%
Yearly Dividend1.7
Dividend Growth(5Y)-10.02%
DP61.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-15 2025-08-15 (0.25)
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 RankSector 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 RankSector 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 RankSector 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%