Helmerich & Payne, Inc.

DB:HPC Stock Report

Market Cap: €3.2b

Helmerich & Payne Valuation

Is HPC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HPC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HPC (€32.11) is trading below our estimate of fair value (€67.03)

Significantly Below Fair Value: HPC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HPC?

Key metric: As HPC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HPC. This is calculated by dividing HPC's market cap by their current earnings.
What is HPC's PE Ratio?
PE Ratio10x
EarningsUS$339.44m
Market CapUS$3.33b

Price to Earnings Ratio vs Peers

How does HPC's PE Ratio compare to its peers?

The above table shows the PE ratio for HPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
4DS Daldrup & Söhne
21.2x9.2%€46.1m
CE2 CropEnergies
15.3x-7.5%€1.0b
CE2 CropEnergies
82.4xn/a€1.2b
VAL Valaris
3.2x-8.7%US$3.4b
HPC Helmerich & Payne
10x2.0%€3.3b

Price-To-Earnings vs Peers: HPC is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (30.5x).

Price to Earnings Ratio vs Industry

How does HPC's PE Ratio compare vs other companies in the European Energy Services Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HPC 10.0xIndustry Avg. 9.5xNo. of Companies7PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HPC is expensive based on its Price-To-Earnings Ratio (10x) compared to the European Energy Services industry average (9.5x).

Price to Earnings Ratio vs Fair Ratio

What is HPC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: HPC is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HPC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€32.11
€38.70
+20.5%
11.7%€47.19€31.15n/a14
Nov ’25€31.00
€38.48
+24.1%
12.2%€46.05€30.39n/a14
Oct ’25€26.78
€39.27
+46.6%
11.7%€45.17€29.81n/a15
Sep ’25€28.99
€40.33
+39.1%
9.9%€45.15€30.70n/a15
Aug ’25€36.75
€41.45
+12.8%
10.3%€49.03€33.30n/a16
Jul ’25€33.18
€41.76
+25.9%
8.7%€46.68€34.54n/a17
Jun ’25€33.48
€41.68
+24.5%
7.9%€46.04€34.99n/a17
May ’25€37.24
€43.15
+15.9%
7.7%€49.65€35.60n/a17
Apr ’25€38.98
€41.13
+5.5%
9.7%€48.64€33.04n/a17
Mar ’25€35.27
€41.20
+16.8%
10.7%€48.91€30.45n/a17
Feb ’25€36.81
€41.03
+11.5%
11.5%€49.05€30.54n/a18
Jan ’25€32.15
€42.01
+30.7%
9.5%€49.94€33.60n/a19
Dec ’24€32.77
€43.02
+31.3%
9.2%€50.57€34.02n/a19
Nov ’24€36.81
€44.72
+21.5%
9.3%€51.58€34.70€31.0019
Oct ’24€40.61
€44.31
+9.1%
11.6%€52.02€35.00€26.7819
Sep ’24€36.33
€43.33
+19.3%
12.0%€51.63€34.11€28.9919
Aug ’24€39.71
€42.17
+6.2%
13.5%€50.99€30.05€36.7519
Jul ’24€31.53
€42.55
+35.0%
20.2%€59.55€30.23€33.1818
Jun ’24€28.39
€44.76
+57.6%
19.6%€60.16€30.54€33.4817
May ’24€29.61
€46.92
+58.4%
18.1%€59.25€30.08€37.2417
Apr ’24€31.85
€54.89
+72.4%
16.4%€71.56€35.32€38.9817
Mar ’24€38.88
€56.38
+45.0%
14.4%€72.78€41.59€35.2717
Feb ’24€43.52
€54.67
+25.6%
14.0%€70.09€40.05€36.8117
Jan ’24€45.57
€55.03
+20.8%
14.1%€66.89€39.57€32.1517
Dec ’23€47.74
€55.21
+15.7%
15.0%€67.45€38.95€32.7717
Nov ’23€49.33
€54.36
+10.2%
15.4%€66.92€35.49€36.8118

Analyst Forecast: Target price is less than 20% higher than the current share price.

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