Helmerich & Payne (NYSE:HP) - Share price, News & Analysis

HP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	3/6
Dividends	3/6

HP Stock Overview

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

Rewards

Trading at 20.8% below our estimate of its fair value

Earnings are forecast to grow 113.44% per year

Risk Analysis

Dividend of 1.94% is not well covered by earnings or forecast to be in the next 3 years

Significant insider selling over the past 3 months

Helmerich & Payne Competitors

Patterson-UTI Energy

NasdaqGS:PTEN

US$4.0b

Transocean

NYSE:RIG

US$2.8b

Noble

NYSE:NE

US$2.3b

Nabors Industries

NYSE:NBR

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for Helmerich & Payne
Historical stock prices
Current Share Price	US$51.48
52 Week High	US$50.89
52 Week Low	US$20.93
Beta	1.74
1 Month Change	22.05%
3 Month Change	50.39%
1 Year Change	78.44%
3 Year Change	2.59%
5 Year Change	-4.21%
Change since IPO	496.87%

Recent News & Updates

May 03

Helmerich & Payne: Outlook Is Improving

Helmerich & Payne reported $467.60 million in the fiscal second quarter of 2022, up from $296.17 million in the same quarter a year ago. H&P's North America Solutions segment left the second quarter with 173 active rigs in April. I recommend buying HP below $45, expecting a low at $42.

Shareholder Returns

	HP	US Energy Services	US Market
7D	11.5%	7.0%	1.0%
1Y	78.4%	42.5%	-15.1%

Return vs Industry: HP exceeded the US Energy Services industry which returned 42.5% over the past year.

Return vs Market: HP exceeded the US Market which returned -15.1% over the past year.

Price Volatility

Is HP's price volatile compared to industry and market?
HP volatility
HP Average Weekly Movement	7.6%
Energy Services Industry Average Movement	9.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: HP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HP's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1920	5,932	John Lindsay	https://www.hpinc.com

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 Solutions, Offshore Gulf of Mexico, and International Solutions. The North America Solutions segment drills primarily in Colorado, Louisiana, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, and Wyoming.

Helmerich & Payne Fundamentals Summary

How do Helmerich & Payne's earnings and revenue compare to its market cap?
HP fundamental statistics
Market Cap	US$5.24b
Earnings (TTM)	-US$193.60m
Revenue (TTM)	US$1.55b

3.5x

P/S Ratio

-28.0x

P/E Ratio

Is HP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HP income statement (TTM)
Revenue	US$1.55b
Cost of Revenue	US$1.16b
Gross Profit	US$390.39m
Other Expenses	US$583.99m
Earnings	-US$193.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.84
Gross Margin	25.13%
Net Profit Margin	-12.46%
Debt/Equity Ratio	19.8%

How did HP perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

-55%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HP ($51.48) is trading below our estimate of fair value ($64.96)

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

Price To Earnings Ratio

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

PE vs Market: HP is unprofitable, so we can't compare its Price-To-Earnings 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 Price-To-Book Ratio (2x) compared to the US Energy Services industry average (1.4x).

Future Growth

How is Helmerich & Payne forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

113.4%

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 (1.9%).

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

High Growth Earnings: HP's is expected to become profitable in the next 3 years.

Revenue vs Market: HP's revenue (12.2% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: HP's revenue (12.2% per year) is forecast to grow slower than 20% 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 (8.7%).

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-44.2%

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 44.2% 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 (-1.8%).

Return on Equity

High ROE: HP has a negative Return on Equity (-7.03%), as it is currently unprofitable.

Financial Health

How is Helmerich & Payne's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: HP's short term assets ($918.5M) exceed its short term liabilities ($377.6M).

Long Term Liabilities: HP's short term assets ($918.5M) do not cover its long term liabilities ($1.2B).

Debt to Equity History and Analysis

Debt Level: HP's net debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: HP's debt to equity ratio has increased from 11.3% to 19.8% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HP's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: HP's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (4.01%).

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: HP is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure

CEO

John Lindsay (60 yo)

9.67yrs

Tenure

US$8,468,310

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 ($USD8.47M) is about average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: HP's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: HP's board of directors are considered experienced (9.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: HP insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30