Helmerich & Payne (HP) AI Stock Analysis

• Market Cap: $2.55B
• Dividend Yield: 3.9%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 25.92%
• EPS Growth: -109.50%
• Country: US
• Employees: 7,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.22
• Shares Outstanding: 99,439,835
• 10 Day Avg. Volume: 1,261,633
• 30 Day Avg. Volume: 1,567,848
• PEG Ratio: -0.49
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 15.86
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 3.98
• 1Y Price Target: $23.67
• Price Target Upside: -7.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: $26.00 ▲(1.40% Upside)

Helmerich & Payne's overall stock score is driven by strong earnings call performance and positive technical indicators. However, challenges in profitability and valuation concerns due to a negative P/E ratio weigh on the score. The company's efforts in cost reduction and debt repayment are positive signs for future financial health.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability.

Debt Reduction

Reducing debt enhances financial flexibility and reduces interest burden, strengthening the company's balance sheet over time.

Leadership Changes

Leadership changes can bring fresh perspectives and strategies, potentially driving innovation and operational improvements.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can limit reinvestment opportunities and affect long-term growth prospects.

Free Cash Flow Decline

Declining free cash flow limits the company's ability to fund operations and growth initiatives, impacting future liquidity.

Goodwill Impairment

Goodwill impairment indicates potential overvaluation of past acquisitions, affecting asset valuation and financial health.

Helmerich & Payne Business Overview & Revenue Model

Company Description

Helmerich & Payne, Inc. (HP) is a leading provider of drilling services to the oil and natural gas industry, primarily operating in the United States and internationally. The company specializes in the design, manufacture, and operation of drilling rigs, with a focus on high-performance, technologically advanced rigs that enhance drilling efficiency and safety. HP operates in two main segments: U.S. Land and Offshore, offering a range of services that cater to both onshore and offshore drilling operations, including the provision of equipment, technology, and skilled personnel.

How the Company Makes Money

Helmerich & Payne generates revenue primarily through its drilling services, where it charges clients rig rental fees based on the duration and complexity of drilling operations. The company's U.S. Land segment is a significant contributor to its earnings, as it operates a fleet of high-specification rigs that are in demand for unconventional drilling projects. Additionally, HP earns revenue from its Offshore segment, which includes the operation of jack-up rigs and other offshore drilling assets. The company also benefits from long-term contracts with major oil and gas companies, providing stability and predictability in its revenue streams. Strategic partnerships with operators and technology providers enhance its service offerings, contributing to its financial performance.

Helmerich & Payne Financial Statement Overview

Summary

Helmerich & Payne shows signs of revenue growth recovery, but profitability remains a challenge with a negative net profit margin. The balance sheet is strong with low leverage, but cash flow generation is weak, impacting financial flexibility.

Income Statement

Helmerich & Payne's income statement shows a positive revenue growth rate of 11.13% in the TTM, indicating a recovery from previous declines. However, the company is currently experiencing a negative net profit margin of -0.90%, reflecting ongoing profitability challenges. The gross profit margin has decreased to 18.49% from higher levels in previous years, suggesting pressure on cost management. Despite these challenges, the EBIT and EBITDA margins remain positive at 10.41% and 26.08%, respectively, indicating operational efficiency.

Balance Sheet

The balance sheet of Helmerich & Payne is relatively strong, with a very low debt-to-equity ratio of 0.0024 in the TTM, indicating minimal leverage and financial risk. However, the return on equity is negative at -1.06%, reflecting the company's struggle to generate returns for shareholders. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth by -51.24% in the TTM, which is a concern for future liquidity. The operating cash flow to net income ratio is 0.62, indicating that operating cash flow is not fully covering net income. The free cash flow to net income ratio is low at 0.07, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	2.76B	2.87B	2.06B	1.22B	1.77B
Gross Profit	634.00M	729.04M	775.01M	224.55M	-158.90M	101.48M
EBITDA	894.07M	907.46M	992.98M	425.76M	2.50M	-131.64M
Net Income	-30.86M	344.17M	434.10M	5.45M	-337.46M	-496.39M
Balance Sheet
Total Assets	6.86B	5.78B	4.38B	4.36B	5.03B	4.83B
Cash, Cash Equivalents and Short-Term Investments	187.40M	510.26M	350.77M	349.23M	1.12B	577.22M
Total Debt	2.19B	1.86B	599.95M	554.99M	1.03B	480.73M
Total Liabilities	4.00B	2.86B	1.61B	1.59B	2.12B	1.51B
Stockholders Equity	2.76B	2.92B	2.77B	2.77B	2.91B	3.32B
Cash Flow
Free Cash Flow	36.55M	189.59M	438.22M	-38.63M	54.29M	398.09M
Operating Cash Flow	504.76M	684.66M	833.68M	233.91M	136.44M	538.88M
Investing Cash Flow	-1.98B	-458.75M	-322.58M	-167.31M	-161.99M	-87.89M
Financing Cash Flow	1.40B	986.51M	-463.87M	-734.30M	425.52M	-297.22M

Helmerich & Payne Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 25.64 is above the 20-day moving average (MA) of 23.32, above the 50-day MA of 21.46, and above the 200-day MA of 21.34, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 88.96 is Negative, 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
TNK	―	$2.03B	7.30	15.78%	3.40%	-21.71%	-37.58%
LBRT	―	$2.66B	14.58	9.21%	1.95%	-12.05%	-46.45%
HP	―	$2.55B	―	-1.19%	3.90%	25.92%	-109.50%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PTEN	―	$2.55B	―	-4.00%	4.73%	-16.59%	83.95%
MRC	―	$1.23B	―	5.66%	―	-9.81%	-124.43%
NBR	―	$744.99M	―	-49.08%	―	3.49%	18.16%

Helmerich & Payne Corporate Events

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.

The most recent analyst rating on (HP) stock is a Buy with a $25.00 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 September 9, 2025, Helmerich & Payne, Inc. announced a quarterly cash dividend of $0.25 per share, to be paid on December 2, 2025, to shareholders recorded by November 18, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HP) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.

Helmerich & Payne’s 2024 Outlook: Navigating Persistent Risks Amid Stability

Helmerich & Payne continues to face the same risk factors as previously disclosed in their 2024 Annual Report on Form 10-K, with no material changes reported. This indicates that the company is still navigating the same challenges and uncertainties that could impact its operations and financial performance. Stakeholders should remain vigilant and consider these persistent risks when evaluating the company’s future prospects. The absence of new risk factors suggests stability but also highlights the ongoing nature of existing threats.

Helmerich & Payne’s Earnings Call Highlights Resilience

Helmerich & Payne’s recent earnings call showcased a strong performance in its North American operations and highlighted promising growth in international markets, particularly in South America and the Middle East. Despite facing challenges such as a decline in rig count and goodwill impairment, the company’s successful integration of KCA and robust financial results underscore its resilience and strategic positioning.

Helmerich & Payne Reports Q3 Loss Amidst Strategic Adjustments

Helmerich & Payne, Inc. is a leading provider of drilling services and technologies, operating in both conventional and unconventional oil and gas plays worldwide. The company recently reported its fiscal third-quarter results, revealing a consolidated net loss of $163 million, primarily due to a significant non-cash goodwill impairment charge. However, when adjusted for this and other one-time items, the company achieved earnings of $22 million. The North America Solutions segment showed resilience with an operating income of $158 million, while the International Solutions segment faced challenges, reporting a loss of $167 million due to the integration of KCA Deutag. Despite these challenges, the company realized a consolidated adjusted EBITDA of $268 million, reflecting strong operational performance.