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Helmerich & Payne Inc (NYSE:HP)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Helmerich & Payne Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

HP' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 4

3
9

During the past 13 years, the highest Piotroski F-Score of Helmerich & Payne Inc was 9. The lowest was 3. And the median was 7.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 90.86 + -21.214 + 16.002 + 21.205 = $107 Mil.
Cash Flow from Operations was 330.971 + 271.205 + 308.196 + 184.321 = $1,095 Mil.
Revenue was 659.694 + 566.11 + 487.847 + 438.191 = $2,152 Mil.
Gross Profit was 308.024 + 237.188 + 211.203 + 216.58 = $973 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(7344.15 + 7335.817 + 7152.012 + 7130.274 + 7025.105) / 5 = $7197.4716 Mil.
Total Assets at the begining of this year (Mar15) was $7,344 Mil.
Long-Term Debt was $493 Mil.
Total Current Assets was $1,460 Mil.
Total Current Liabilities was $371 Mil.
Net Income was 192.279 + 168.688 + 203.608 + 153.543 = $718 Mil.

Revenue was 952.087 + 985.038 + 1060.787 + 885.67 = $3,884 Mil.
Gross Profit was 436.848 + 444.58 + 501.324 + 418.571 = $1,801 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(6488.281 + 6693.082 + 6720.998 + 6801.519 + 7344.15) / 5 = $6809.606 Mil.
Total Assets at the begining of last year (Mar14) was $6,488 Mil.
Long-Term Debt was $533 Mil.
Total Current Assets was $1,568 Mil.
Total Current Liabilities was $391 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Helmerich & Payne Inc's current net income (TTM) was 107. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Helmerich & Payne Inc's current cash flow from operations (TTM) was 1,095. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Mar15)
=106.853/7344.15
=0.0145494

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=718.118/6488.281
=0.11067924

Helmerich & Payne Inc's return on assets of this year was 0.0145494. Helmerich & Payne Inc's return on assets of last year was 0.11067924. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Helmerich & Payne Inc's current net income (TTM) was 107. Helmerich & Payne Inc's current cash flow from operations (TTM) was 1,095. ==> 1,095 > 107 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=492.919/7197.4716
=0.06848502

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=532.908/6809.606
=0.07825827

Helmerich & Payne Inc's gearing of this year was 0.06848502. Helmerich & Payne Inc's gearing of last year was 0.07825827. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Mar16)=Total Current Assets/Total Current Liabilities
=1460.377/371.328
=3.93284913

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=1568.369/391.145
=4.00968694

Helmerich & Payne Inc's current ratio of this year was 3.93284913. Helmerich & Payne Inc's current ratio of last year was 4.00968694. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Helmerich & Payne Inc's number of shares in issue this year was 108.5. Helmerich & Payne Inc's number of shares in issue last year was 108.4. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=972.995/2151.842
=0.45216842

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1801.323/3883.582
=0.4638303

Helmerich & Payne Inc's gross margin of this year was 0.45216842. Helmerich & Payne Inc's gross margin of last year was 0.4638303. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Mar15)
=2151.842/7344.15
=0.29300082

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=3883.582/6488.281
=0.5985533

Helmerich & Payne Inc's asset turnover of this year was 0.29300082. Helmerich & Payne Inc's asset turnover of last year was 0.5985533. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Helmerich & Payne Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Helmerich & Payne Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
Question 1 1111111111
Question 2 1111111111
Question 3 1100011100
Question 4 1111111111
Question 5 1011111110
Question 6 0110101101
Question 7 0100001101
Question 8 1101011111
Question 9 1100011010
F-score 7855579866

Helmerich & Payne Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 1100000000
Question 4 1111111111
Question 5 1111100001
Question 6 1100011110
Question 7 0000011110
Question 8 1111111100
Question 9 0001110000
F-score 7756676654
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