Helmerich Story

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HP -- USA Stock  

USD 24.92  0.82  3.40%

As many rational traders are trying to avoid energy space, it makes sense to recap Helmerich Payne a little further and understand how it stands against Nabors Industries and other similar entities. We are going to focus on some of the competitive aspects of both Helmerich and Nabors.
Published over two weeks ago
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Will Helmerich Payne (NYSE:HP) shadow Nabors Industries price gain?
By analyzing existing technical and fundamental indicators between Helmerich Payne and Nabors, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Nabors with a short position in Helmerich Payne. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Helmerich Payne has an asset utilization ratio of 32.35 percent. This suggests that the company is making $0.32 for each dollar of assets. An increasing asset utilization means that Helmerich Payne is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Helmerich or Diamond is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Helmerich Payne dividends

A dividend is the distribution of a portion of Helmerich Payne earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Helmerich Payne dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Helmerich one year expected dividend income is about $1.74 per share.
As of 5th of December 2020, Dividend Yield is likely to grow to 0.17, while Payment of Dividends and Other Cash Distributions is likely to drop (280.9 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-260.3 M-280.9 M
Dividend Yield 0.16  0.17 
Dividends per Basic Common Share 2.38  2.33 
Investing in dividend-paying stocks, such as Helmerich Payne is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Helmerich Payne must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Helmerich Payne. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Helmerich Payne's Liquidity

Helmerich Payne financial leverage refers to using borrowed capital as a funding source to finance Helmerich Payne ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Helmerich Payne financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Helmerich Payne's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Helmerich Payne, but it might be worth checking our own buy vs. sell analysis

Correlation Between Helmerich and Diamond Offshore Drilling

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Helmerich Payne together with similar or unrelated positions with a negative correlation. For example, you can also add Diamond Offshore to your portfolio. If Diamond Offshore is not perfectly correlated to Helmerich Payne it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Helmerich Payne for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between HP and DOFSQ for more information.


Are you currently holding both Helmerich Payne and Diamond Offshore in your portfolio? Please note if you are using this as a pair-trade strategy between Helmerich Payne and Diamond Offshore, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving Helmerich Payne Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Helmerich Payne revenue. Based on the latest financial disclosure, Helmerich Payne reported 2.21 B of revenue. This is 95.51% lower than that of the Energy sector and 35.53% higher than that of the Oil & Gas Drilling industry. The revenue for all United States stocks is 76.58% higher than that of Helmerich Payne. As for Nabors Industries we see revenue of 2.4 B, which is 47.18% higher than that of the Oil & Gas Drilling

Helmerich2.21 Billion
Sector1.63 Billion
Nabors2.4 Billion
2.2 B
1.6 B
2.4 B

Will Helmerich price decline impact its balance sheet?

The semi variance is down to 9.57 as of today. Helmerich Payne shows above-average downside volatility for the selected time horizon. We advise investors to inspect Helmerich Payne further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Helmerich Payne future alpha.

Our Bottom Line On Helmerich Payne

Although few other entities within the oil & gas drilling industry are still a little expensive, even after the recent corrections, Helmerich Payne may offer a potential longer-term growth to insiders. To conclude, as of the 20th of November 2020, we believe that at this point, Helmerich Payne is overvalued with below average probability of bankruptcy within the next 2 years. Our ongoing recommendation on the firm is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Helmerich Payne. Please refer to our Terms of Use for any information regarding our disclosure principles.

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