HELMERICH & PAYNE (HP) Stock Fundamental Analysis
NYSE:HP - New York Stock Exchange, Inc. - US4234521015 - Common Stock - Currency: USD
HP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 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 on the other hand it scores bad on growth.
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.
In the past 5 years HP always reported a positive cash flow from operatings.
1.2 Ratios
HP has a Return On Assets of 3.00%. This is comparable to the rest of the industry: HP outperforms 46.03% of its industry peers.
HP's Return On Equity of 7.40% is in line compared to the rest of the industry. HP outperforms 50.79% of its industry peers.
The Return On Invested Capital of HP (4.33%) is worse than 68.25% 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 8.50%.
| 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
The Profit Margin of HP (7.04%) is better than 60.32% of its industry peers.
HP has a Operating Margin of 12.34%. This is in the better half of the industry: HP outperforms 63.49% of its industry peers.
In the last couple of years the Operating Margin of HP has grown nicely.
HP has a better Gross Margin (36.93%) than 73.02% of its industry peers.
In the last couple of years the Gross Margin of HP has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HP is destroying value.
Compared to 1 year ago, HP has less shares outstanding
The number of shares outstanding for HP has been reduced compared to 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 1.50. This is a bad value and indicates that HP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.50, HP is not doing good in the industry: 63.49% of the companies in the same industry are doing better.
HP has a debt to FCF ratio of 29.89. This is a negative value and a sign of low solvency as HP would need 29.89 years to pay back of all of its debts.
HP has a worse Debt to FCF ratio (29.89) than 61.90% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HP is somewhat dependend on debt financing.
The Debt to Equity ratio of HP (0.76) is worse than 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 29.89 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.74
WACC5.85%
2.3 Liquidity
A Current Ratio of 1.68 indicates that HP should not have too much problems paying its short term obligations.
HP's Current ratio of 1.68 is in line compared to the rest of the industry. HP outperforms 41.27% of its industry peers.
A Quick Ratio of 1.32 indicates that HP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, HP is doing worse than 66.67% of the companies in the same industry.
| 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%.
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 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.
Based on estimates for the next years, HP will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y-48.29%
EPS Next 2Y-30.18%
EPS Next 3Y-19.32%
EPS Next 5Y-24.34%
Revenue Next Year34.04%
Revenue Next 2Y19.15%
Revenue Next 3Y11.53%
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
A Price/Earnings ratio of 7.07 indicates a rather cheap valuation of HP.
Based on the Price/Earnings ratio, HP is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
HP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 10.06 indicates a reasonable valuation of HP.
Based on the Price/Forward Earnings ratio, HP is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
HP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
HP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HP is cheaper than 71.43% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.69 | ||
| EV/EBITDA | 4.45 |
4.3 Compensation for Growth
HP's earnings are expected to decrease with -19.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-30.18%
EPS Next 3Y-19.32%
5. Dividend
5.1 Amount
HP has a Yearly Dividend Yield of 5.75%, which is a nice return.
In the last 3 months the price of HP has falen by -31.01%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.48, HP pays a better dividend. On top of this HP pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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
HP pays out 61.89% of its income as dividend. This is not a sustainable payout ratio.
HP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP61.89%
EPS Next 2Y-30.18%
EPS Next 3Y-19.32%
17.11
-0.27 (-1.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-2.04%
Ins Owners3.81%
Ins Owner Change8.05%
Market Cap1.70B
Analysts69.23
Price Target22.8 (33.26%)
Short Float %8.49%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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)-24.58%
PT rev (3m)-39.83%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)-44.58%
EPS NY rev (1m)-22.82%
EPS NY rev (3m)-32.88%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 10.06 | ||
| P/S | 0.55 | ||
| P/FCF | 22.69 | ||
| P/OCF | 2.93 | ||
| P/B | 0.58 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 4.45 |
EPS(TTM)2.42
EY14.14%
EPS(NY)1.7
Fwd EY9.94%
FCF(TTM)0.75
FCFY4.41%
OCF(TTM)5.84
OCFY34.13%
SpS31.03
BVpS29.52
TBVpS20.92
PEG (NY)N/A
PEG (5Y)0.48
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 | 1.5 |
F-Score3
WACC5.85%
ROIC/WACC0.74
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-48.29%
EPS Next 2Y-30.18%
EPS Next 3Y-19.32%
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 Year34.04%
Revenue Next 2Y19.15%
Revenue Next 3Y11.53%
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%