Why Helmerich & Payne Inc's Stock Skyrocketed 13% in a Quarter: A Deep Dive

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. The company's stock price has risen by 12.82% during this period, with a current market cap of $4.04 billion and a stock price of $40.61. Over the past week, the stock price has seen a slight gain of 0.05%. According to the GF Value, a measure of a stock's intrinsic value defined by GuruFocus.com, the stock is significantly undervalued with a current GF Value of $67.9, up from $64.35 three months ago.

Helmerich & Payne Inc: A Brief Overview

Helmerich & Payne Inc operates in the Oil & Gas industry, boasting the largest fleet of U.S. land drilling rigs. The company's FlexRig line is the leading choice for drilling horizontal wells for the production of U.S. tight oil and gas. H&P has a presence in nearly every major U.S. shale play and is gradually expanding its international footprint. 1711401495762567168.png

Profitability Analysis

Helmerich & Payne Inc's Profitability Rank stands at 5/10, indicating a moderate level of profitability compared to its industry peers. The company's Operating Margin is 17.87%, better than 65.27% of the companies in the industry. The company's ROE and ROA are 14.66% and 9.22% respectively, outperforming 63.44% and 74.13% of the companies in the industry. The ROIC of 10.13% is better than 68.88% of the companies in the industry. Over the past decade, the company has had 5 years of profitability, better than 50.68% of the companies in the industry. 1711401522237014016.png

Growth Prospects

Helmerich & Payne Inc's Growth Rank is 1/10, indicating a low growth rate compared to its industry peers. The company's 3-Year Revenue Growth Rate per Share is -9.00%, better than 17.37% of the companies in the industry. The 5-Year Revenue Growth Rate per Share is -5.00%, better than 23.89% of the companies in the industry. However, the company's future Total Revenue Growth Rate is estimated to be 12.81%, better than 82.24% of the companies in the industry. The company's future EPS without NRI Growth Rate is estimated to be 165.28%, better than 98.46% of the companies in the industry. 1711401539353968640.png

Major Stock Holders

Ken Fisher (Trades, Portfolio) is the largest holder of Helmerich & Payne Inc's stock, holding 809965 shares, which accounts for 0.81% of the company's stock. The second-largest holder is Prem Watsa (Trades, Portfolio), who holds 555105 shares, accounting for 0.56% of the company's stock. The third-largest holder is First Eagle Investment (Trades, Portfolio), holding 61012 shares, accounting for 0.06% of the company's stock.

Competitive Landscape

Helmerich & Payne Inc faces stiff competition from Seadrill Ltd(SDRL, Financial) with a stock market cap of $3.41 billion, Patterson-UTI Energy Inc(PTEN, Financial) with a stock market cap of $5.53 billion, and Transocean Ltd(RIG, Financial) with a stock market cap of $6.1 billion.

Conclusion

In conclusion, Helmerich & Payne Inc's stock performance has been impressive over the past three months, with a significant surge in its stock price. The company's profitability and growth prospects are promising, and it has a strong presence in the Oil & Gas industry. The company's stock is held by prominent investors, and it faces competition from major players in the industry. Based on the analyzed data, Helmerich & Payne Inc is in a strong position and has promising future prospects.

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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.