Helmerich & Payne Inc (HP, Financial), a leading player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. Despite a recent dip of 8.56% over the past week, the stock has risen by 13.80% over the past three months, reflecting a strong market performance. The company's current GF Value stands at $67.9, indicating that the stock is significantly undervalued. This is consistent with the past GF Value of $64.35, which also suggested that the stock was significantly undervalued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.
Company Overview and Profitability Analysis
Helmerich & Payne Inc operates the largest fleet of U.S. land drilling rigs and has a growing international presence. The company's FlexRig line is the leading choice to drill horizontal wells for the production of U.S. tight oil and gas. H&P is present in nearly every major U.S. shale play, contributing to its market capitalization of $4.01 billion.
When it comes to profitability, Helmerich & Payne Inc has a Profitability Rank of 5/10, indicating moderate profitability. The company's operating margin of 17.87% is better than 65.27% of the companies in the industry. Its ROE, ROA, and ROIC stand at 14.66%, 9.22%, and 10.13% respectively, outperforming a significant portion of its competitors. Over the past decade, the company has demonstrated profitability for five years, better than 50.68% of the companies in the industry.
Growth Prospects and Major Holders
Despite its moderate profitability, Helmerich & Payne Inc's growth prospects appear to be limited, with a Growth Rank of 1/10. The company's 3-year revenue growth rate per share stands at -9.00%, and its 5-year revenue growth rate per share is -5.00%. However, the company's future 3 to 5-year total revenue growth rate is estimated at 12.81%, and its future 3 to 5-year EPS without NRI growth rate is projected at a whopping 165.28%.
The top three holders of the stock are Ken Fisher (Trades, Portfolio), Prem Watsa (Trades, Portfolio), and First Eagle Investment (Trades, Portfolio), holding 0.81%, 0.56%, and 0.06% of the shares respectively.
Competitive Landscape
Helmerich & Payne Inc faces stiff competition in the Oil & Gas industry. Its main competitors include Seadrill Ltd with a market cap of $3.42 billion, Patterson-UTI Energy Inc with a market cap of $5.45 billion, and Transocean Ltd with a market cap of $6.11 billion. Despite the competition, Helmerich & Payne Inc's significant undervaluation and strong profitability metrics position it favorably in the industry.
Conclusion
In conclusion, Helmerich & Payne Inc's stock has demonstrated strong performance over the past three months, despite a recent dip. The company's significant undervaluation, moderate profitability, and promising future growth estimates make it an interesting prospect for investors. However, its low growth rank and stiff competition in the industry are factors that investors should consider. As always, potential investors are advised to conduct their own comprehensive research before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
