📊 HP Key Takeaways
Is Helmerich & Payne, Inc. (HP) a Good Investment?
Helmerich & Payne is fundamentally unprofitable with negative net margins (-8.0%) and operating margins (-5.0%), combined with negative interest coverage (-4.3x) indicating inability to service debt from operations. While positive operating cash flow ($219M) and free cash flow ($88.6M) suggest non-cash losses, the combination of zero profitability, minimal revenue growth (+1.8% YoY), and significant capital intensity in a cyclical industry presents elevated financial stress with limited margin for deterioration.
Healthy liquidity and positive free cash flow despite GAAP losses indicate underlying cash generation remains intact. However, negative operating income and weak interest coverage highlight continued profitability pressure and limited cushion until margins improve.
Why Buy Helmerich & Payne, Inc. Stock? HP Key Strengths
- Positive operating cash flow of $219M despite net losses, indicating non-cash charges/writedowns rather than operational cash burn
- Positive free cash flow of $88.6M after capital expenditures demonstrates ability to fund operations and service debt in near term
- Moderate debt/equity ratio of 0.76x and reasonable current/quick ratios (1.71x/1.32x) prevent immediate liquidity crisis
- Solid liquidity (2.03x current, 1.58x quick)
- Positive free cash flow with 11.3% FCF margin
- Moderate leverage (0.75x D/E) and $247M cash
HP Stock Risks: Helmerich & Payne, Inc. Investment Risks
- Negative interest coverage ratio of -4.3x means operating income cannot cover debt service payments, creating refinancing risk
- Structurally unprofitable with negative ROE (-5.9%), ROA (-2.5%), and net margin (-8.0%), indicating value destruction for shareholders
- Minimal revenue growth of 1.8% YoY combined with capital-intensive operations ($130.4M capex) and cyclical industry downturn limits recovery potential
- Sustained operating and net losses with negative margins
- Negative interest coverage (-2.7x) limits financial flexibility
- Cyclicality in drilling demand may pressure utilization and day rates
Key Metrics to Watch
- Operating income trend - when/if company returns to profitability and positive operating margins
- Interest coverage ratio - critical metric given current negative coverage and debt service obligations
- Free cash flow sustainability - monitor if positive FCF persists or deteriorates as capital intensity continues
- Operating margin
- Interest coverage
Helmerich & Payne, Inc. (HP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility.
HP Profit Margin, ROE & Profitability Analysis
HP vs Energy Sector: How Helmerich & Payne, Inc. Compares
How Helmerich & Payne, Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Helmerich & Payne, Inc. Stock Overvalued? HP Valuation Analysis 2026
Based on fundamental analysis, Helmerich & Payne, Inc. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Helmerich & Payne, Inc. Balance Sheet: HP Debt, Cash & Liquidity
HP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Helmerich & Payne, Inc.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.16 reflects profitable operations.
HP Revenue Growth, EPS Growth & YoY Performance
HP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $906.4M | $1.7M | $0.01 |
| Q1 2026 | $674.6M | $54.8M | $0.54 |
| Q3 2025 | $695.1M | $88.7M | $0.88 |
| Q2 2025 | $685.1M | $1.7M | $0.01 |
| Q1 2025 | $674.6M | $54.8M | $0.54 |
| Q3 2024 | $695.1M | $84.8M | $0.88 |
| Q2 2024 | $685.1M | $84.8M | $0.84 |
| Q1 2024 | $674.6M | $95.2M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Helmerich & Payne, Inc. Dividends, Buybacks & Capital Allocation
HP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Helmerich & Payne, Inc. (CIK: 0000046765)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HP
What is the AI rating for HP?
Helmerich & Payne, Inc. (HP) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HP's key strengths?
Claude: Positive operating cash flow of $219M despite net losses, indicating non-cash charges/writedowns rather than operational cash burn. Positive free cash flow of $88.6M after capital expenditures demonstrates ability to fund operations and service debt in near term. ChatGPT: Solid liquidity (2.03x current, 1.58x quick). Positive free cash flow with 11.3% FCF margin.
What are the risks of investing in HP?
Claude: Negative interest coverage ratio of -4.3x means operating income cannot cover debt service payments, creating refinancing risk. Structurally unprofitable with negative ROE (-5.9%), ROA (-2.5%), and net margin (-8.0%), indicating value destruction for shareholders. ChatGPT: Sustained operating and net losses with negative margins. Negative interest coverage (-2.7x) limits financial flexibility.
What is HP's revenue and growth?
Helmerich & Payne, Inc. reported revenue of $1.9B.
Does HP pay dividends?
Helmerich & Payne, Inc. pays dividends, with $50.7M distributed to shareholders in the trailing twelve months.
Where can I find HP SEC filings?
Official SEC filings for Helmerich & Payne, Inc. (CIK: 0000046765) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HP's EPS?
Helmerich & Payne, Inc. has a diluted EPS of $-1.57.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HP a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Helmerich & Payne, Inc. has a SELL rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HP stock overvalued or undervalued?
Valuation metrics for HP: ROE of -5.9% (sector avg: 14%), net margin of -8.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HP stock in 2026?
Our dual AI analysis gives Helmerich & Payne, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HP's free cash flow?
Helmerich & Payne, Inc.'s operating cash flow is $219.0M, with capital expenditures of $130.4M. FCF margin is 4.5%.
How does HP compare to other Energy stocks?
Vs Energy sector averages: Net margin -8.0% (avg: 12%), ROE -5.9% (avg: 14%), current ratio 1.71 (avg: 1.3).