Helmerich & Payne (HP) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: 3.24%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 35.89%
• EPS Growth: -148.39%
• Country: US
• Employees: 7,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.01
• Shares Outstanding: 98,448,370
• 10 Day Avg. Volume: 1,472,303
• 30 Day Avg. Volume: 1,610,707
• PEG Ratio: 0.09
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 18.81
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 6.47
• 1Y Price Target: $31.45
• Price Target Upside: 12.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): $3.95B

• Rating: 73 Outperform
• Price Target: $33.00 ▲(18.11% Upside)

Helmerich & Payne's overall stock score reflects a balanced outlook. Strong technical indicators and positive corporate events are offset by valuation concerns due to negative earnings. Financial performance is stable but challenged by profitability issues. The earnings call provided a positive strategic outlook despite current losses.

Positive Factors

International Expansion

The expansion into Saudi Arabia enhances H&P's global market position, providing access to new revenue streams and diversifying its operational base.

Debt Reduction

Significant debt reduction strengthens the balance sheet, improving financial flexibility and reducing interest expenses, which supports long-term stability.

Leadership Restructuring

Strategic leadership changes aim to leverage experience for growth and strengthen competitive positioning, crucial for navigating industry challenges.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment and shareholder returns, impacting long-term financial health and competitiveness.

International Reactivation Costs

High reactivation costs may pressure margins, affecting profitability and requiring efficient cost management to sustain international operations.

Net Loss

The net loss reflects operational challenges and may affect investor confidence, necessitating strategic adjustments to return to profitability.

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, which are billed on a day-rate basis. The company operates a diverse fleet of land and offshore drilling rigs, and its clients include major oil and gas exploration and production companies. The revenue model is heavily influenced by the demand for oil and gas, as well as the pricing environment within the industry. Key revenue streams include day rates for drilling services, which can vary based on rig type, location, and market conditions. Additionally, HP benefits from long-term contracts with clients, providing a stable income stream. The company also engages in the manufacturing of drilling rigs, contributing to its overall revenue through sales to third parties. Strategic partnerships with major energy firms and a focus on advanced drilling technologies further enhance its earnings potential, allowing HP to maintain a competitive edge in the market.

Helmerich & Payne Financial Statement Overview

Summary

Helmerich & Payne shows positive revenue growth and strong cash flow generation, but profitability challenges persist with a negative net profit margin and return on equity. The balance sheet remains robust with low leverage, providing a stable financial foundation.

Income Statement

Helmerich & Payne's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is 18.49%, indicating moderate profitability, but the net profit margin is negative at -0.90%, reflecting a net loss. Revenue growth is positive at 9.28% TTM, showing recovery and growth potential. However, the EBIT and EBITDA margins have declined compared to the previous year, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.0024 TTM, indicating minimal leverage and financial stability. However, the return on equity is negative at -1.08% TTM, reflecting the net loss and impacting shareholder returns. The equity ratio is healthy, showing a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 218.98% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.41, suggesting that cash flows are not fully covering net losses. The free cash flow to net income ratio is negative, reflecting the net loss impact.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	3.75B	3.75B	3.75B	2.76B	2.87B	2.06B
Gross Profit	588.26M	553.50M	553.50M	729.04M	775.01M	229.19M
EBITDA	658.78M	658.78M	658.78M	907.46M	992.98M	453.69M
Net Income	-163.69M	-163.69M	-163.69M	344.17M	434.10M	6.95M
Balance Sheet
Total Assets	6.71B	6.71B	6.71B	5.78B	4.44B	4.41B
Cash, Cash Equivalents and Short-Term Investments	245.76M	245.76M	245.76M	510.26M	409.84M	385.48M
Total Debt	2.06B	2.06B	2.06B	1.86B	599.95M	582.34M
Total Liabilities	3.88B	3.88B	3.88B	2.86B	1.67B	1.64B
Stockholders Equity	2.72B	2.72B	2.72B	2.92B	2.77B	2.77B
Cash Flow
Free Cash Flow	116.58M	116.58M	116.58M	189.59M	438.22M	-38.63M
Operating Cash Flow	542.95M	542.95M	542.95M	684.66M	833.68M	233.91M
Investing Cash Flow	-1.91B	-1.93B	-1.93B	-458.75M	-322.58M	-167.31M
Financing Cash Flow	51.28M	66.66M	66.66M	986.51M	-463.87M	-734.30M

Helmerich & Payne Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HP, the sentiment is Neutral. The current price of 27.94 is below the 20-day moving average (MA) of 28.70, above the 50-day MA of 26.64, and above the 200-day MA of 20.88, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HP.

Helmerich & Payne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HP	73 Outperform	$2.75B	-16.80	-5.87%	3.24%	35.89%	-148.39%
LBRT	69 Neutral	$2.83B	15.54	9.21%	1.89%	-12.05%	-46.45%
NBR	69 Neutral	$746.41M	5.31	47.77%	―	6.52%	―
TNK	68 Neutral	$1.87B	6.02	17.02%	3.69%	-20.11%	-26.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PTEN	56 Neutral	$2.21B	-16.54	-4.00%	5.49%	-16.59%	83.95%
MRC	45 Neutral	―	―	0.28%	―	-10.96%	-169.10%

Helmerich & Payne Corporate Events

Helmerich & Payne Announces CEO Retirement and Successor

On December 10, 2025, Helmerich & Payne, Inc. announced that CEO John Lindsay will retire following the 2026 Annual Meeting of Stockholders, with President Raymond John ‘Trey’ Adams III set to succeed him. Lindsay, who has been pivotal in guiding the company through significant industry cycles and technological advancements, will remain as a senior advisor through December 2026 to ensure a smooth transition. Adams, with a strong background in various leadership roles within the company, is expected to continue focusing on performance, safety, and strategic growth, aiming to maintain H&P’s competitive edge and shareholder value.

Helmerich & Payne Declares Quarterly Cash Dividend

On December 9, 2025, Helmerich & Payne‘s Board of Directors declared a quarterly cash dividend of $0.25 per share, to be paid on February 27, 2026, to shareholders recorded by February 13, 2026. This decision reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and solidifying its position in the market.

Helmerich & Payne Announces New President Appointment

On September 29, 2025, Helmerich & Payne, Inc. announced the promotion of Raymond John ‘Trey’ Adams III to President, effective October 1, 2025, as part of a strategic leadership restructuring. This move, alongside the appointments of Mike Lennox and John Bell to Executive Vice Presidents, aims to leverage their extensive experience to drive the company’s growth and strengthen its competitive position globally. These changes come as the company completes the integration of the KCAD acquisition and expands its global footprint, particularly focusing on opportunities in the Middle East.