HP Stock Fair Value Calculation – Helmerich & Payne Q4 Earnings Miss Estimates Despite In-Line Sales

November 21, 2023

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Helmerich & Payne ($NYSE:HP) (HP) recently reported their fourth quarter earnings which fell short of analyst expectations, despite sales coming in line with projections. HP is an energy services company based in Tulsa, Oklahoma that primarily engages in drilling oil and gas wells for exploration and production companies.

In addition, they are also exploring new opportunities to reduce debt and strengthen their balance sheet. Overall, Helmerich & Payne’s Q4 earnings fell short of expectations, though sales met projections. While the decrease in earnings is concerning, the company is taking steps to improve their financials and create long-term value for shareholders.

Share Price

On Monday, Helmerich & Payne’s (HP) stock opened at $38.6 and closed at $38.4, up by 1.1% from its prior closing price of 38.0. Despite the company’s quarterly results missing estimates, its share price saw an overall increase for the day, likely attributed to investors considering HP’s strong backlog and long-term prospects. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for HP. More…

    Total Revenues Net Income Net Margin
    2.87k 428.24 14.1%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for HP. More…

    Operations Investing Financing
    833.68 -322.58 -463.87
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for HP. More…

    Total Assets Total Liabilities Book Value Per Share
    4.38k 1.61k 27.88
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for HP are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    17.4% -57.6% 21.3%
    FCF Margin ROE ROA
    15.3% 13.9% 8.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – HP Stock Fair Value Calculation

    At GoodWhale, we conducted a comprehensive analysis of HELMERICH & PAYNE’s wellbeing. Through our proprietary Valuation Line, we found that the intrinsic value of HELMERICH & PAYNE shares is around $60.3. Currently, HELMERICH & PAYNE stock is traded at $38.4, which implies a 36.3% undervaluation. This presents a great opportunity for investors to purchase HELMERICH & PAYNE stocks at an attractive price. More…

  • Star Chart Analysis
  • Valuation Analysis

  • Peers

    Oil and gas drilling is a highly competitive business. The industry is dominated by a handful of large companies, including Helmerich & Payne, Inc. (H&P) and its competitors Precision Drilling Corp, Core Laboratories NV, and Petroleo Brasileiro SA Petrobras. H&P is one of the largest and most successful drilling companies in the world, with a strong market share in the United States and internationally. The company has a long history of success and a track record of delivering shareholder value.

    – Precision Drilling Corp ($TSX:PD)

    Precision Drilling Corporation is a Canada-based oil and gas drilling company. The Company operates in the business of drilling oil and gas wells, including horizontal drilling ofmulti-stage completions. The Company’s segments include Canada, United States, Kuwait, Trinidad and Tobago, and Corporate. The Company’s rigs offer drilling services in conventional and unconventional basins in North America, Latin America, the Middle East and North Africa. The Company’s fleet of approximately 75 rigs includes approximately 50 in Canada, approximately 15 in the United States, approximately seven in Kuwait and approximately three in Trinidad and Tobago.

    – Core Laboratories NV ($NYSE:CLB)

    Core Laboratories NV, a leading oilfield services company, has a market capitalization of 787.06 million as of 2022. The company has a return on equity of 12.13%. Core Laboratories NV provides services and products to the oil and gas industry worldwide. The company operates in three segments: Reservoir Description, Production Enhancement, and Reservoir Management.

    – Petroleo Brasileiro SA Petrobras ($NYSE:PBR)

    Petroleo Brasileiro SA Petrobras is a Brazilian oil and gas company with a market cap of 87.4B as of 2022. The company’s return on equity is 36.02%. Petrobras is engaged in the exploration, production, and sale of oil and gas. The company also refines, processes, and markets petroleum products and derivatives. In addition, Petrobras engages in the transportation, distribution, and marketing of natural gas.


    Overall, the company’s fourth-quarter results were impacted by a challenging environment in the energy space. Investors should watch out for any potential developments or updates on HP’s strategy moving forward.

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