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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Helmerich & Payne Inc. To summarize, we found that Helmerich & Payne Inc ranked in the 90th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2409.5%. In terms of the factors that were most noteworthy in this DCF analysis for HP, they are:
The company's compound free cash flow growth rate over the past 5.48 years comes in at 0.75%; that's greater than 87.32% of US stocks we're applying DCF forecasting to.
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 just 6.13% 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 only 17.73% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HP, try BPMP, NEX, PDS, NBR, and SNMP.
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.