NYSE:HP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$3.4b

Last Updated

2021/06/19 23:38 UTC

Data Sources

Company Financials +

Executive Summary

Helmerich & Payne, Inc., together with its subsidiaries, provides drilling services and solutions for exploration and production companies. More Details


Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.


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

Stable Share Price: HP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HP's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.5%

HP

-8.5%

US Energy Services

-1.9%

US Market


1 Year Return

48.5%

HP

62.8%

US Energy Services

38.2%

US Market

Return vs Industry: HP underperformed the US Energy Services industry which returned 65.7% over the past year.

Return vs Market: HP exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

HPIndustryMarket
7 Day-3.5%-8.5%-1.9%
30 Day10.8%-0.4%1.1%
90 Day3.7%8.4%4.3%
1 Year55.5%48.5%68.0%62.8%40.4%38.2%
3 Year-39.7%-50.1%-45.3%-50.2%57.5%47.8%
5 Year-36.3%-51.9%-46.3%-55.3%127.2%101.7%

Long-Term 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?

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HP ($32.04) is trading above our estimate of fair value ($28.35)

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 US 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's PB Ratio (1.1x) is in line with the US Energy Services industry average.


Future Growth

How is Helmerich & Payne forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HP's revenue (11.1% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: HP's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HP is forecast to be unprofitable in 3 years.


Past Performance

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

-39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HP is currently unprofitable.

Growing Profit Margin: HP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HP is unprofitable, and losses have increased over the past 5 years at a rate of 39.8% 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 (25.7%).


Return on Equity

High ROE: HP has a negative Return on Equity (-9.98%), as it is currently unprofitable.


Financial Health

How is Helmerich & Payne's financial position?


Financial Position Analysis

Short Term Liabilities: HP's short term assets ($978.6M) exceed its short term liabilities ($251.6M).

Long Term Liabilities: HP's short term assets ($978.6M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: HP's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: HP's debt to equity ratio has increased from 11.1% to 15.3% over the past 5 years.

Debt Coverage: HP's debt is well covered by operating cash flow (77.6%).

Interest Coverage: Insufficient data to determine if HP's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

3.14%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 20 2021Ex Dividend DateAug 16 2021Dividend Pay DateAug 31 202115 days from Ex DividendBuy in the next 56 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HP's dividend (3.12%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: HP's dividend (3.12%) is low compared to the top 25% of dividend payers in the US market (3.43%).


Stability and Growth of Payments

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 is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

John Lindsay (59 yo)

7.25yrs

Tenure

US$6,644,063

Compensation

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


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.64M) is about average for companies of similar size in the US market ($USD5.32M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: HP's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.432b
  • Shares outstanding: 107.89m
  • Website: https://www.hpinc.com

Number of Employees


Location

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

Listings


Biography

Helmerich & Payne, Inc., together with its subsidiaries, provides drilling services and solutions for exploration and production companies. The company operates through three segments: North America Soluti...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 23:38
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.