HP's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 161.78 -- higher than 82.85% of US-listed equities with positive expected earnings growth.
HP's went public 34.27 years ago, making it older than 92.69% of listed US stocks we're tracking.
Of note is the ratio of Helmerich & Payne Inc's sales and general administrative expense to its total operating expenses; merely 9.17% of US stocks have a lower such ratio.
Stocks with similar financial metrics, market capitalization, and price volatility to Helmerich & Payne Inc are TPCO, EXP, PDCE, CNX, and MCF.
Helmerich & Payne operates as a contract drilling company in South America, the Middle East, and Africa. It provides drilling rigs, equipment, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and fixed platforms, tension-leg platforms, and spars in offshore areas. The company was founded in 1920 and is based in Tulsa, Oklahoma.
HP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Helmerich & Payne Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Helmerich & Payne Inc ranked in the 64th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 152% on a DCF basis. The most interesting components of our discounted cash flow analysis for Helmerich & Payne Inc ended up being:
Helmerich & Payne Inc's weighted average cost of capital (WACC) is 9%; for context, that number is higher than 74.35% of tickers in our DCF set.
Helmerich & Payne Inc's effective tax rate, as measured by taxes paid relative to net income, is at 47 -- greater than 95.07% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Helmerich & Payne Inc has a reliance on debt greater than just 12.36% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SHI, KMI, NINE, VLO, and BOOM can be thought of as valuation peers to HP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.