(HP) Helmerich Payne - Overview
Sector: Energy | Industry: Oil & Gas Drilling | Exchange: NYSE (USA) | Market Cap: 3.812m USD | Total Return: 150.2% in 12m
Avg Turnover: 43.8M
Qual. Beats: -3
Rev. Trend: 83.9%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -1.9 is critical
Tailwinds
Rs Leader, Tailwind, Pullback 52w
Helmerich & Payne, Inc. (HP) is a Tulsa-based provider of high-specification drilling rigs and digital technology solutions for the global oil and gas industry. The company organizes its operations into three primary geographic segments: North America Solutions, Offshore Solutions, and International Solutions, with a significant operational concentration in the Permian Basin of Texas. Beyond its core energy services, the firm maintains a portfolio of commercial real estate investments, including retail properties.
The business model relies on a fleet of super-spec rigs designed for complex horizontal and directional drilling, which are essential for unconventional shale plays. As a capital-intensive service provider, the company’s revenue is cyclical and highly sensitive to the capital expenditure budgets of exploration and production (E&P) firms. Investors evaluating the company’s long-term yield and sector positioning may find more detailed performance metrics on ValueRay.
The International and Offshore segments provide geographic diversification, operating in key energy markets such as Saudi Arabia, Argentina, and the North Sea. By integrating proprietary software with mechanical hardware, Helmerich & Payne aims to improve wellbore placement and drilling efficiency for its clients.
- U.S. land rig utilization rates drive North America Solutions segment revenue
- Crude oil price volatility dictates exploration and production capital expenditure levels
- International expansion in Saudi Arabia and Kuwait reduces domestic market dependency
- Adoption of automated drilling technologies improves operational margins and contract pricing
- Rig fleet modernization costs influence long-term capital allocation and free cash flow
| Net Income: -375.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 3.01 > 1.0 |
| NWC/Revenue: 15.23% < 20% (prev 19.63%; Δ -4.41% < -1%) |
| CFO/TA 0.09 > 3% & CFO 547.6m > Net Income -375.9m |
| Net Debt (1.92b) to EBITDA (522.6m): 3.68 < 3 |
| Current Ratio: 1.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (99.9m) vs 12m ago 0.50% < -2% |
| Gross Margin: 11.29% > 18% (prev 22.42%; Δ -11.13% > 0.5%) |
| Asset Turnover: 58.95% > 50% (prev 42.60%; Δ 16.35% > 0%) |
| Interest Coverage Ratio: -1.92 > 6 (EBIT TTM -208.4m / Interest Expense TTM 108.6m) |
| A: 0.10 (Total Current Assets 1.47b - Total Current Liabilities 863.3m) / Total Assets 6.34b |
| B: 0.38 (Retained Earnings 2.41b / Total Assets 6.34b) |
| C: -0.03 (EBIT TTM -208.4m / Avg Total Assets 6.79b) |
| D: 0.68 (Book Value of Equity 2.53b / Total Liabilities 3.71b) |
| Altman-Z'' = 2.38 = BBB |
| DSRI: 0.79 (Receivables 810.6m/786.3m, Revenue 4.00b/3.08b) |
| GMI: 1.99 (GM 22.42% / 11.29%) |
| AQI: 0.77 (AQ_t 0.12 / AQ_t-1 0.16) |
| SGI: 1.30 (Revenue 4.00b / 3.08b) |
| TATA: -0.15 (NI -375.9m - CFO 547.6m) / TA 6.34b) |
| Beneish M = -2.24 (Cap -4..+1) = BBB |
As of June 05, 2026, the stock is trading at USD 39.60 with a total of 1,135,835 shares traded.
Over the past week, the price has changed by +4.02%,
over one month by -1.96%,
over three months by +16.12% and
over the past year by +150.21%.
Helmerich Payne has received a consensus analysts rating of 3.18. Therefore, it is recommended to hold HP.
- StrongBuy: 2
- Buy: 2
- Hold: 11
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 40.8 | 3% |
P/E Forward = 103.0928
P/S = 0.9526
P/B = 1.5076
P/EG = 5.7805
Revenue TTM = 4.00b USD
EBIT TTM = -208.4m USD
EBITDA TTM = 522.6m USD
Long Term Debt = 1.86b USD (from longTermDebt, last quarter)
Short Term Debt = 146.3m USD (from shortTermDebt, last quarter)
Debt = 2.15b USD (from shortLongTermDebtTotal, last quarter) + Leases 146.1m
Net Debt = 1.92b USD (calculated: Debt 2.15b - CCE 224.7m)
Enterprise Value = 5.74b USD (3.81b + Debt 2.15b - CCE 224.7m)
Interest Coverage Ratio = -1.92 (Ebit TTM -208.4m / Interest Expense TTM 108.6m)
EV/FCF = 22.41x (Enterprise Value 5.74b / FCF TTM 256.0m)
FCF Yield = 4.46% (FCF TTM 256.0m / Enterprise Value 5.74b)
FCF Margin = 6.40% (FCF TTM 256.0m / Revenue TTM 4.00b)
Net Margin = -9.39% (Net Income TTM -375.9m / Revenue TTM 4.00b)
Gross Margin = 11.29% ((Revenue TTM 4.00b - Cost of Revenue TTM 3.55b) / Revenue TTM)
Gross Margin QoQ = 7.04% (prev 11.90%)
Tobins Q-Ratio = 0.91 (Enterprise Value 5.74b / Total Assets 6.34b)
Interest Expense / Debt = 5.05% (Interest Expense 108.6m / Debt 2.15b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -164.6m (EBIT -208.4m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.71 (Total Current Assets 1.47b / Total Current Liabilities 863.3m)
Debt / Equity = 0.85 (Debt 2.15b / totalStockholderEquity, last quarter 2.53b)
Debt / EBITDA = 3.68 (Net Debt 1.92b / EBITDA 522.6m)
Debt / FCF = 7.52 (Net Debt 1.92b / FCF TTM 256.0m)
Total Stockholder Equity = 2.66b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.54% (Net Income -375.9m / Total Assets 6.34b)
RoE = -14.16% (Net Income TTM -375.9m / Total Stockholder Equity 2.66b)
RoCE = -4.62% (EBIT -208.4m / Capital Employed (Equity 2.66b + L.T.Debt 1.86b))
RoIC = -3.04% (negative operating profit) (NOPAT -164.6m / Invested Capital 5.42b)
WACC = 7.68% (E(3.81b)/V(5.96b) * Re(9.76%) + D(2.15b)/V(5.96b) * Rd(5.05%) * (1-Tc(0.21)))
Discount Rate = 9.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 35.96 | Cagr: 0.11%
[DCF] Terminal Value 77.97% ; FCFF base≈183.6m ; Y1≈210.4m ; Y5≈309.7m
[DCF] Fair Price = 27.39 (EV 4.66b - Net Debt 1.92b = Equity 2.74b / Shares 99.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.49 | # QB: -3
Revenue Correlation: 83.86 | Revenue CAGR: 15.61% | SUE: -0.68 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.08 | Chg30d=-3.46% | Revisions=+50% | Analysts=7
EPS current Year (2026-09-30): EPS=-0.00 | Chg30d=-102.08% | Revisions=-25% | GrowthEPS=-100.4% | GrowthRev=+6.0%
EPS next Year (2027-09-30): EPS=1.32 | Chg30d=+22.44% | Revisions=+56% | GrowthEPS=+38135.8% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: +56%