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

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Helmerich & Payne, Inc. has an F-score of 7 indicating the company's financial situation is typical for a stable company.

HP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 7

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 6.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 173.182 + 159.797 + 266.159 + 151.08 = $750 Mil.
Cash Flow from Operations was 304.858 + 235.542 + 267.33 + 152.391 = $960 Mil.
Revenue was 889.152 + 864.536 + 840.197 + 838.309 = $3,432 Mil.
Gross Profit was 415.104 + 391.366 + 389.207 + 376.572 = $1,572 Mil.
Total Assets at the begining of this year (Dec12) was $5,934 Mil.
Total Assets was $6,411 Mil.
Long-Term Debt was $80 Mil.
Total Current Assets was $1,391 Mil.
Total Current Liabilities was $479 Mil.
Net Income was 159.603 + 157.115 + 149.925 + 129.719 = $596 Mil.

Revenue was 844.572 + 829.447 + 819.785 + 769.982 = $3,264 Mil.
Gross Profit was 377.701 + 382.112 + 355.85 + 321.774 = $1,437 Mil.
Total Assets at the begining of last year (Dec11) was $5,258 Mil.
Total Assets was $5,934 Mil.
Long-Term Debt was $195 Mil.
Total Current Assets was $979 Mil.
Total Current Liabilities was $427 Mil.

Profitability

Q1. 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 was 750. ==> Positive ==> Score 1.

Q2. 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 was 960. ==> Positive ==> Score 1.

Q3. 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/Total Assets at the beginning of this year (Dec12)
=750.218/5934.288
=0.12642089

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=596.362/5257.887
=0.11342237

Helmerich & Payne, Inc.'s return on assets of this year was 0.12642089. Helmerich & Payne, Inc.'s return on assets of last year was 0.11342237. ==> This year is higher. ==> Score 1.

Q4. 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 was 750. Helmerich & Payne, Inc.'s current cash flow from operations was 960. ==> 960 > 750 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

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

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

Gearing (This Year)=Long-Term Debt/Total Assets
=80/6410.587
=0.01247936

Gearing (Last Year)=Long-Term Debt/Total Assets
=195/5934.288
=0.03285988

Helmerich & Payne, Inc.'s gearing of this year was 0.01247936. Helmerich & Payne, Inc.'s gearing of last year was 0.03285988. ==> This year is lower. ==> Score 1.

Q6. 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)=Total Current Assets/Total Current Liabilities
=1391.29/478.737
=2.90616769

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=979.432/427.233
=2.29250081

Helmerich & Payne, Inc.'s current ratio of this year was 2.90616769. Helmerich & Payne, Inc.'s current ratio of last year was 2.29250081. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

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

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

Helmerich & Payne, Inc.'s number of shares in issue this year was 108.6. Helmerich & Payne, Inc.'s number of shares in issue last year was 107.4. ==> There is more number of shares in issue this year. ==> Score 0.

Efficiency

Q8. 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)=Gross Profit/Revenue
=1572.249/3432.194
=0.45808862

Gross Margin (Last Year)=Gross Profit/Revenue
=1437.437/3263.786
=0.44042011

Helmerich & Payne, Inc.'s gross margin of this year was 0.45808862. Helmerich & Payne, Inc.'s gross margin of last year was 0.44042011. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Dec12)
=3432.194/5934.288
=0.5783666

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=3263.786/5257.887
=0.62074099

Helmerich & Payne, Inc.'s asset turnover of this year was 0.5783666. Helmerich & Payne, Inc.'s asset turnover of last year was 0.62074099. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Helmerich & Payne, Inc. has an F-score of 7 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 1111111111
Q2 1111111111
Q3 0111000111
Q4 1111111111
Q5 0110111111
Q6 1101101011
Q7 0001000011
Q8 0111010111
Q9 1111000110
F-score 5878555798

Helmerich & Payne, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1111111111
Q4 1111111111
Q5 1111111111
Q6 0000101111
Q7 0001111100
Q8 1111101111
Q9 1111111000
F-score 7778979877
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