# Helmerich and Payne (HP.US)

Canonical: https://gigainvestors.com/s/HP

Analysis as of: 2026-10-16T07:29:06.357Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $37.68 per share; close as of 2026-10-15.

Estimated value: low $30.72 per share, central $34.75 per share, high $40.11 per share. Buy at or below the central value $34.75 per share. Valuation as of 2026-10-16T07:29:06.357Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 6

- Operating margin variation: 6.41×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.02×

- FY2017: -0.10×

- FY2018: 0.01×

- FY2019: 0.08×

- FY2020: -0.35×

- FY2021: -0.35×

- FY2022: 0.02×

- FY2023: 0.20×

- FY2024: 0.16×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 0.9%

- ROIC, second-lowest year: -12.0%

- Typical minus recent gross margin: -4.2 pp

- Typical gross margin (annual median): 10.6%

- Recent gross margin (lower of latest and 3-year median): 14.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 14.8%

- ROIC including acquisitions, ten-year median: 3.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -0.5%

- FY2017: -3.2%

- FY2018: 0.7%

- FY2019: 4.2%

- FY2020: -15.4%

- FY2021: -12.0%

- FY2022: 1.0%

- FY2023: 14.1%

- FY2024: 7.7%

- FY2025: 4.0%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 2.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $863M

- Net income, five-year total: $294M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -7.8 pp

- Working capital / revenue, final three-year average: 17.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.04×

- FY2022: 19.79×

- FY2023: 1.00×

- FY2024: 0.72×

- FY2025: -0.20×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -0.5% vs 7.7%

- Per-share earnings: -0.53 to 3.47 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: -1.7%

- Market cap gain: -$3.5B

- Cumulative retained earnings: -$1.2B

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: -1.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: $4.00

- Per-share value, starting three-year median: -$0.53

- Per-share value, ending three-year median: $3.47

- Buybacks concentrated in cheaper years (correlation): -0.02

- Average buyback yield: 1.8%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $733M

- Cumulative net income, 10 years: $65M

- ROIC, first three-year median: -0.5%

- ROIC, last three-year median: 7.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.53

- FY2017: -$1.18

- FY2018: $4.41

- FY2019: -$0.30

- FY2020: -$4.58

- FY2021: -$3.03

- FY2022: $0.07

- FY2023: $4.22

- FY2024: $3.47

- FY2025: -$1.66

### accounting: pass

- Sloan accruals: -10.6%

- Receivables to sales index (DSRI): 1.35×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 5.8%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.25×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.9%

- FY2017: -7.5%

- FY2018: -1.0%

- FY2019: -15.2%

- FY2020: -21.4%

- FY2021: -9.2%

- FY2022: -5.1%

- FY2023: -9.0%

- FY2024: -5.9%

- FY2025: -10.6%

## Holders

- [Prem Watsa](https://gigainvestors.com/FFH): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 26% since Nov 2022 · "* Revenue of $932.36M (-8.6% Y/Y) misses by $16.33M." (seekingalpha.com, May 2026) · sales +35.9%

Story as of 2026-10-16T09:58:53.728Z; price observation 2026-10-15.

Price needs cash profits to grow 2% a year for ten years

### Sales · FY2024–2025

sales +35.9%; source https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm; observed 2025-11-21.

- FY2016: $1.6B 

- FY2017: $1.8B 

- FY2018: $2.5B 

- FY2019: $2.8B 

- FY2020: $1.8B 

- FY2021: $1.2B 

- FY2022: $2.1B 

- FY2023: $2.9B 

- FY2024: $2.8B 

- FY2025: $3.7B 

### Gross margin · FY2025

gross margin 14.8%; source https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm; observed 2025-11-21.

- FY2016: 7.8% 

- FY2018: 10.1% 

- FY2019: 15.3% 

- FY2020: 6.0% 

- FY2022: 11.1% 

- FY2023: 27.0% 

- FY2024: 26.4% 

- FY2025: 14.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas drilling; annual sales are USD 3.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm (filed 2025-11-21); FY2025: revenue 3746013000; grossProfit 553501000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HP.US: Helmerich & Payne, Inc., together with its subsidiaries, provides drilling solutions and technologies for oil and gas exploration and production companies. The company operates through North America Solutions, Offshore Solutions, and International Solutions segments. The North America Solutions segment conducts operations primarily in Texas. The Offshore Solutions segment has drilling operations in Louisiana and in U.S. federal waters the North Sea and Norwegian Sea off the coast of Norway, Caspian Sea and other international waters. The International Solutions segment conducts drilling operations in Saudi Arabia, Argentina, Bahrain, Oman, Germany, and Kuwait. The company focuses on developing, promoting, and commercializing technologies designed to enhance the drilling operations, as well as wellbore quality and placement. It also owns and operates commercial real estate properties. In addition, the company's real estate investments include a shopping center. Helmerich & Payne, Inc. was founded in 1920 and is headquartered in Tulsa, Oklahoma.

### Why customers stay

Margins ranged from 14.8% to 27% during 2023–25; it earns 0.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: grossProfit / revenue = 26.4%.

- Source: https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm (filed 2025-11-21); FY2025: grossProfit / revenue = 14.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); 10-year return on capital observations [[2016,-0.004830746065287277],[2017,-0.032367280566840746],[2018,0.006954408375746671],[2019,0.04200242521626093],[2020,-0.1536978567527456],[2021,-0.11976986254652949],[2022,0.010093589190186249],[2023,0.1409484033284991],[2024,0.07661555610163996],[2025,0.039758041194257854]]; median 0.00852399878296646. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2016: growth capex 0; upkeep 257169000; owner earnings 284590000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2017: growth capex 0; upkeep 397567000; owner earnings 59764000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2018: growth capex 0; upkeep 466584000; owner earnings 599890000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2019: growth capex 0; upkeep 458402000; owner earnings 71891000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2021: growth capex 0; upkeep 82148000; owner earnings 11428000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2022: growth capex 0; upkeep 272539000; owner earnings 137584000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: growth capex 13146000; upkeep 382314000; owner earnings 434100000. Growth capex / owner earnings = 0.030283344851416726.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: growth capex 0; upkeep 495072000; owner earnings 246437000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm (filed 2025-11-21); FY2025: growth capex 0; upkeep 426373000; owner earnings 33618000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Dividend observations: [[2016,300152000],[2017,305515000],[2018,308430000],[2019,313421000],[2020,260335000],[2021,109130000],[2022,107395000],[2023,201456000],[2024,168459000],[2025,100735000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 3.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HP.US SharesStats.PercentInsiders = 3.8150000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Ten-year compound average after fade. Initial solved rate 0.015073938950656562. Price 37.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.960348162475822 → FY2025 0.3386453380610847. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $63.11 per share

- 2016-11: $75.65 per share

- 2016-12: $77.40 per share

- 2017-01: $71.16 per share

- 2017-02: $68.37 per share

- 2017-03: $66.57 per share

- 2017-04: $60.64 per share

- 2017-05: $52.66 per share

- 2017-06: $54.34 per share

- 2017-07: $50.62 per share

- 2017-08: $42.34 per share

- 2017-09: $52.11 per share

- 2017-10: $54.31 per share

- 2017-11: $58.58 per share

- 2017-12: $64.64 per share

- 2018-01: $72.03 per share

- 2018-02: $64.55 per share

- 2018-03: $66.56 per share

- 2018-04: $69.55 per share

- 2018-05: $66.38 per share

- 2018-06: $63.76 per share

- 2018-07: $61.35 per share

- 2018-08: $65.57 per share

- 2018-09: $68.77 per share

- 2018-10: $62.29 per share

- 2018-11: $60.60 per share

- 2018-12: $47.94 per share

- 2019-01: $55.99 per share

- 2019-02: $54.20 per share

- 2019-03: $55.56 per share

- 2019-04: $58.52 per share

- 2019-05: $48.91 per share

- 2019-06: $50.62 per share

- 2019-07: $49.68 per share

- 2019-08: $37.59 per share

- 2019-09: $40.07 per share

- 2019-10: $37.50 per share

- 2019-11: $39.53 per share

- 2019-12: $45.43 per share

- 2020-01: $40.55 per share

- 2020-02: $36.89 per share

- 2020-03: $15.65 per share

- 2020-04: $19.77 per share

- 2020-05: $20.13 per share

- 2020-06: $19.51 per share

- 2020-07: $17.83 per share

- 2020-08: $16.48 per share

- 2020-09: $14.65 per share

- 2020-10: $14.87 per share

- 2020-11: $22.77 per share

- 2020-12: $23.16 per share

- 2021-01: $24.28 per share

- 2021-02: $28.73 per share

- 2021-03: $26.96 per share

- 2021-04: $25.63 per share

- 2021-05: $28.25 per share

- 2021-06: $32.63 per share

- 2021-07: $28.67 per share

- 2021-08: $26.92 per share

- 2021-09: $27.41 per share

- 2021-10: $31.04 per share

- 2021-11: $22.45 per share

- 2021-12: $23.70 per share

- 2022-01: $28.70 per share

- 2022-02: $36.23 per share

- 2022-03: $42.78 per share

- 2022-04: $46.03 per share

- 2022-05: $50.35 per share

- 2022-06: $43.06 per share

- 2022-07: $46.30 per share

- 2022-08: $42.75 per share

- 2022-09: $36.97 per share

- 2022-10: $49.51 per share

- 2022-11: $51.08 per share

- 2022-12: $49.57 per share

- 2023-01: $48.44 per share

- 2023-02: $42.08 per share

- 2023-03: $35.75 per share

- 2023-04: $33.16 per share

- 2023-05: $30.88 per share

- 2023-06: $35.45 per share

- 2023-07: $44.77 per share

- 2023-08: $39.99 per share

- 2023-09: $42.16 per share

- 2023-10: $39.57 per share

- 2023-11: $36.23 per share

- 2023-12: $36.22 per share

- 2024-01: $40.26 per share

- 2024-02: $38.39 per share

- 2024-03: $42.06 per share

- 2024-04: $39.33 per share

- 2024-05: $38.06 per share

- 2024-06: $36.14 per share

- 2024-07: $40.42 per share

- 2024-08: $32.63 per share

- 2024-09: $30.42 per share

- 2024-10: $33.60 per share

- 2024-11: $34.63 per share

- 2024-12: $32.02 per share

- 2025-01: $31.59 per share

- 2025-02: $26.51 per share

- 2025-03: $26.12 per share

- 2025-04: $18.89 per share

- 2025-05: $15.25 per share

- 2025-06: $15.16 per share

- 2025-07: $16.21 per share

- 2025-08: $20.89 per share

- 2025-09: $22.09 per share

- 2025-10: $26.26 per share

- 2025-11: $27.90 per share

- 2025-12: $28.68 per share

- 2026-01: $33.88 per share

- 2026-02: $35.22 per share

- 2026-03: $36.03 per share

- 2026-04: $40.38 per share

- 2026-05: $38.15 per share

- 2026-06: $32.74 per share

- 2026-07: $34.57 per share

- 2026-08: $43.58 per share

- 2026-09: $37.14 per share

- 2026-10: $37.68 per share

## Annual estimated value (USD per share)

- FY2016: low $38.80 per share, central $42.98 per share, high $48.54 per share

- FY2017: low $36.74 per share, central $41.13 per share, high $46.98 per share

- FY2018: low $46.07 per share, central $52.08 per share, high $60.07 per share

- FY2019: low $12.43 per share, central $13.71 per share, high $15.41 per share

- FY2020: low $10.96 per share, central $11.78 per share, high $12.87 per share

- FY2021: low $13.30 per share, central $13.74 per share, high $14.32 per share

- FY2022: low $8.66 per share, central $9.40 per share, high $10.40 per share

- FY2023: low $11.27 per share, central $12.35 per share, high $13.79 per share

- FY2024: low $24.92 per share, central $27.72 per share, high $31.45 per share

- FY2025: low $29.28 per share, central $33.08 per share, high $38.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm); period 2025-09-30, filed 2025-11-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.