NYSE:HP

Stock Analysis Report

Executive Summary

Helmerich & Payne, Inc. primarily engages in drilling oil and gas wells for exploration and production companies.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Helmerich & Payne's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

HP

3.8%

US Energy Services

0.07%

US Market


1 Year Return

-37.7%

HP

-39.4%

US Energy Services

8.9%

US Market

Return vs Industry: HP exceeded the US Energy Services industry which returned -39.4% over the past year.

Return vs Market: HP underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HPIndustryMarket
7 Day4.0%3.8%0.07%
30 Day-9.4%-7.2%-0.3%
90 Day-23.1%-15.6%-1.6%
1 Year-34.4%-37.7%-37.7%-39.4%11.3%8.9%
3 Year-30.9%-40.2%-51.7%-57.7%46.3%36.8%
5 Year-42.4%-54.3%-63.6%-69.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is Helmerich & Payne's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Helmerich & Payne undervalued compared to its fair value and its price relative to the market?

1.05x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HP ($39.16) is trading above our estimate of fair value ($33.69)

Significantly Below Fair Value: HP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HP is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: HP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HP is overvalued based on its PB Ratio (1x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Helmerich & Payne forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

83.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: HP is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: HP's loss is forecast to worsen by 0% next year.

Revenue vs Market: HP's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: HP's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HP's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Helmerich & Payne performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HP is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.

Accelerating Growth: Unable to compare HP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HP is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-13.1%).


Return on Equity

High ROE: HP has a negative Return on Equity (-1.76%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Helmerich & Payne's financial position?


Financial Position Analysis

Short Term Liabilities: HP's short term assets ($1.1B) exceeds its short term liabilities ($390.5M)

Long Term Liabilities: HP's short term assets (1.1B) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: HP's debt to equity ratio (12%) is considered satisfactory

Reducing Debt: HP's debt to equity ratio has increased from 4% to 12% over the past 5 years.

Debt Coverage: HP's debt is well covered by operating cash flow (169.3%).

Interest Coverage: HP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: HP has a high level of physical assets or inventory.

Debt Coverage by Assets: HP's debt is covered by short term assets (assets are 2.270380x debt).


Next Steps

Dividend

What is Helmerich & Payne's current dividend yield, its reliability and sustainability?

7.25%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Helmerich & Payne before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.3%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years7.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HP's dividend (7.25%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HP's dividend (7.25%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: HP's dividends per share have been stable in the past 10 years.

Growing Dividend: HP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: HP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HP's dividends in 3 years are not forecast to be well covered by earnings (123.4% payout ratio).


Next Steps

Management

What is the CEO of Helmerich & Payne's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

John Lindsay (58yo)

5.6yrs

Tenure

US$7,777,164

Compensation

Mr. John W. Lindsay has been the Chief Executive Officer and President of Helmerich & Payne, Inc. since March 5, 2014 and September 2012 respectively. He serves as an Independent Director of Arcosa, Inc. s ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD7.78M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.1yrs

Average Tenure

48yo

Average Age

Experienced Management: HP's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HP's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$415,26812 Dec 18
Michael Lennox
EntityIndividual
Shares6,912
Max PriceUS$60.14

Ownership Breakdown


Management Team

  • John Lindsay (58yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$7.78m
  • Mark Smith (48yo)

    VP, CFO

    • Tenure: 0yrs
    • Compensation: US$1.93m
  • Debra Stockton

    General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Rob Stauder (56yo)

    Senior VP & Chief Engineer of Helmerich & Payne International Drilling Co

    • Tenure: 9.3yrs
    • Compensation: US$2.76m
  • Cara Hair (43yo)

    VP of Corporate Services

    • Tenure: 4.6yrs
    • Compensation: US$1.94m
  • Dave Wilson

    Director of Investor Relations

    • Tenure: 0yrs
  • Sara Momper (35yo)

    Director of Financial Reporting & Principal Accounting Officer

    • Tenure: 0yrs

Board Members

  • Hans Helmerich (60yo)

    Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$489.03k
  • Ed Rust (69yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$295.07k
  • John Zeglis (72yo)

    Independent Director

    • Tenure: 30.8yrs
    • Compensation: US$294.14k
  • Randy Foutch (67yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$297.89k
  • José Mas (48yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$287.56k
  • Tom Petrie (74yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$291.64k
  • Donald Robillard (67yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$306.64k
  • John Lindsay (58yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$7.78m
  • Mark Smith (48yo)

    VP, CFO

    • Tenure: 0yrs
    • Compensation: US$1.93m
  • Kevin Cramton (59yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$292.56k

Company Information

Helmerich & Payne, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Helmerich & Payne, Inc.
  • Ticker: HP
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$4.285b
  • Shares outstanding: 109.43m
  • Website: https://www.hpinc.com

Number of Employees


Location

  • Helmerich & Payne, Inc.
  • 1437 South Boulder Avenue
  • Suite 1400
  • Tulsa
  • Oklahoma
  • 74119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HPCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0J4GLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Helmerich & Payne, Inc. primarily engages in drilling oil and gas wells for exploration and production companies. The company operates through U.S. Land, Offshore, and International Land segments. The U.S. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:36
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.