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 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2492.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Helmerich & Payne Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.48 years, is 0.75% -- higher than 87.08% of stocks in our DCF forecasting set.
Helmerich & Payne Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -17.63. This coverage rate is greater than that of merely 6.23% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Helmerich & Payne Inc has a reliance on debt greater than just 17.26% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Helmerich & Payne Inc? See NEX, BPMP, PTEN, NBR, and ENBL.
Helmerich & Payne ([[HP]] +3%) heads higher despite receiving a downgrade to Sell from Neutral with an $11.50 price target, cut from $18, at B. Riley FBR, which cites an "anemic recovery outlook for U.S. land drilling rig demand."B. Riley analyst Thomas Curran expects HP will "confront a ceiling on its...
Billionaire investor Carl Icahn exits his stakes in HP (HP) and Freeport-McMoRan (FCX) during Q2, according to his quarterly filing detailing his holdings.Boosts stake in Newell Brands (NWL) to 88.6M shares from 43.7M shares.Previously: Icahn sells 14.7M Herbalife shares, still holds 20.5M (Aug. 12)...
Our neighbors to the north are taking an interest in the upcoming US elections – which is no surprise, as the US and Canada are each other’s largest trading partners and have a long history of close relations. RBC – the major Canadian international bank and investment firm – has released a report from the Global Equity Team, led by chief equity strategist Lori Calvasina, on the November vote. The firm’s stock analysts have put their money down, and listed their picks for stocks to gain or lose based on the election results.While the polling consistently favors former Vice President Joe Biden, the Democratic nominee, prognosticators – both political and financial – remember that Hilary Clinton, too, was a heavy favorite in her run four years ago. So, President Donald Trump cannot be coun...
It is now my pleasure to turn the conference over to Dave Wilson. With us today are John Lindsay, President and CEO; and Mark Smith, Senior Vice President and CFO. Both John and Mark will be sharing some comments with us, after which we'll open the call for questions.