Helmerich & Payne (HP) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: 6.96%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.81
• Revenue Growth: 12.23%
• EPS Growth: -37.06%
• Country: US
• Employees: 7,000
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.02
• Shares Outstanding: 99,416,610
• 10 Day Avg. Volume: 1,739,024
• 30 Day Avg. Volume: 2,090,934
• PEG Ratio: -0.25
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.66
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: $21.56
• Price Target Upside: 28.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $18.50 ▲(9.99%Upside)

The overall stock score is primarily influenced by strong financial valuation and stable dividend yield, offset by bearish technical indicators and operational challenges in international markets. The company's strategic acquisitions and stable North American operations provide longer-term growth potential.

Positive Factors

International Growth

The merger with KCA accelerates international growth strategy and provides scale in the Middle East.

Strategic Expansion

HP expanded its global footprint and it is now a top Middle East driller, important strategic decisions to secure the company's longevity.

Negative Factors

Cash Flow Concerns

HP underperformed the OIH by 650bps after a poor cash flow quarter and downside guidance.

Financial Performance

FY1Q25 adjusted EBITDA missed consensus by 5%.

Market Challenges

The market may be under-appreciating the depth/duration of conventional land drilling market activity pressure in Saudi, now HP's biggest market outside of the US.

Helmerich & Payne Business Overview & Revenue Model

Company Description

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. It also focuses on developing, promoting, and commercializing technologies designed to enhance the drilling operations, as well as wellbore quality and placement. The Offshore Gulf of Mexico segment has drilling operations in Louisiana and in U.S. federal waters in the Gulf of Mexico. The International Solutions segment conducts drilling operations in Argentina, Bahrain, Colombia, and the United Arab Emirates. As of September 30, 2021, the company operated a fleet of 236 land rigs in North America; 30 international land rigs; and 7 offshore platform rigs. It also owns, develops, and operates commercial real estate properties. The company's real estate investments include a shopping center comprising approximately 390,000 leasable square feet; and approximately 176 acres of undeveloped real estate located in Tulsa, Oklahoma. Helmerich & Payne, Inc. was founded in 1920 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Helmerich & Payne generates revenue primarily through its contract drilling services. The company earns money by leasing its fleet of technologically advanced drilling rigs to oil and gas exploration and production companies. HP's revenue streams are categorized into U.S. Land, Offshore, and International Land operations. In the U.S. Land segment, which is the largest contributor to its revenue, HP provides high-performance rigs and related services under long-term contracts. The Offshore segment involves drilling operations in the Gulf of Mexico, while the International Land segment covers operations in South America, the Middle East, and other regions. HP's earnings are influenced by factors such as the global demand for oil and gas, rig utilization rates, and day rates charged for its drilling services. The company also invests in research and development to enhance its technological capabilities, which helps in securing new contracts and maintaining competitive pricing.

Helmerich & Payne Financial Statement Overview

Summary

Helmerich & Payne demonstrates strong revenue growth and a stable balance sheet with low leverage. However, declining EBIT margins and challenges in maintaining free cash flow levels indicate potential operational efficiency issues.

Income Statement

Helmerich & Payne has demonstrated strong financial performance with a notable revenue growth rate of 11.87% TTM (Trailing-Twelve-Months) and improving net profit margins from previous years. The gross profit margin stands at 22.39% TTM, reflecting efficient cost management. However, the decline in EBIT margin from 19.55% to 11.35% indicates potential pressures on operating efficiency.

Balance Sheet

The company maintains a stable balance sheet with a low debt-to-equity ratio of 0.002 TTM, highlighting minimal leverage and financial risk. The equity ratio of 42.14% suggests a solid equity base. However, the return on equity has decreased to 7.23% TTM, indicating a less efficient use of equity compared to previous periods.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth rate, from a robust 131.36% in 2023 to a negative trajectory in recent TTM. The operating cash flow to net income ratio remains strong at 2.63 TTM, indicating healthy cash generation relative to earnings. However, the free cash flow to net income ratio dropped, reflecting challenges in maintaining free cash flow levels.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.76B	2.87B	2.06B	1.22B	1.77B
Gross Profit	729.04M	775.01M	224.55M	-158.90M	101.48M
EBITDA	907.46M	992.98M	425.76M	2.50M	-131.64M
Net Income	344.17M	434.10M	5.45M	-337.46M	-496.39M
Balance Sheet
Total Assets	5.78B	4.38B	4.36B	5.03B	4.83B
Cash, Cash Equivalents and Short-Term Investments	510.26M	350.77M	349.23M	1.12B	577.22M
Total Debt	1.86B	599.95M	554.99M	1.03B	480.73M
Total Liabilities	2.86B	1.61B	1.59B	2.12B	1.51B
Stockholders Equity	2.92B	2.77B	2.77B	2.91B	3.32B
Cash Flow
Free Cash Flow	189.59M	438.22M	-38.63M	54.29M	398.09M
Operating Cash Flow	684.66M	833.68M	233.91M	136.44M	538.88M
Investing Cash Flow	-458.75M	-322.58M	-167.31M	-161.99M	-87.89M
Financing Cash Flow	986.51M	-463.87M	-734.30M	425.52M	-297.22M

Helmerich & Payne Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HP, the sentiment is Positive. The current price of 16.82 is above the 20-day moving average (MA) of 16.20, above the 50-day MA of 16.58, and below the 200-day MA of 25.70, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HP.

Helmerich & Payne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VAL	79 Outperform	$3.60B	11.90	14.66%	―	30.82%	-62.91%
SDRL	71 Outperform	$1.88B	5.69	12.75%	―	-15.60%	32.51%
Sector *	67 Neutral	$15.28B	9.73	6.25%	5.18%	4.49%	-71.88%
HP	64 Neutral	$1.67B	7.78	7.57%	6.96%	12.23%	-37.06%
RIG	63 Neutral	$2.73B	―	-6.65%	―	24.47%	-55.45%
PTEN	52 Neutral	$2.35B	―	-27.16%	5.25%	-7.98%	-1011.04%
NBR	51 Neutral	$544.15M	―	-44.00%	―	-0.94%	-19.18%

Helmerich & Payne Corporate Events

Helmerich & Payne Extends Senior Notes Exchange Offer

On June 27, 2025, Helmerich & Payne extended its Exchange Offer for senior notes, allowing additional time for holders of unregistered Old Notes to exchange them for registered New Notes. The offer, initially set to expire on June 26, 2025, will now close on July 10, 2025, with a high percentage of the Old Notes already tendered, indicating strong participation from stakeholders.

The most recent analyst rating on (HP) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.

Helmerich & Payne Faces New Rig Contract Suspensions

On June 10, 2025, Helmerich & Payne announced its executives’ participation in the J.P. Morgan 2025 Energy, Power and Renewables Conference in New York City. The company also provided a market update revealing contract suspensions for nine additional rigs in Saudi Arabia, totaling 26 suspensions. Despite these challenges, H&P remains financially robust and optimistic about long-term synergies from its KCA Deutag acquisition, maintaining strong operations in North America and other markets.

The most recent analyst rating on (HP) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.

Helmerich & Payne Declares Quarterly Cash Dividend

On June 3, 2025, Helmerich & Payne‘s Board of Directors declared a quarterly cash dividend of $0.25 per share on its common stock. This dividend will be payable on August 29, 2025, to stockholders recorded by August 15, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HP) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.

Helmerich & Payne Completes Acquisition of KCA Deutag

On January 16, 2025, Helmerich & Payne, Inc. completed its acquisition of KCA Deutag International Limited for approximately $2.0 billion. This acquisition, funded through a combination of senior notes, term loans, and cash, is expected to enhance H&P’s market position by integrating KCA Deutag’s operations, although the pro forma financial statements indicate that actual results may vary from projections.

The most recent analyst rating on (HP) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.