+ Watch HP
on My Watchlist
The Company is primarily engaged in contract drilling of oil and gas wells for others.
Helmerich & Payne (HP) has P/E 10, dividend yield 4.3%, 1% debt, beat S&P 500 capital for the last 15 years. 6 year dividend growth rate of 63%. Dividend increases for the last 42 years. Slowing buying in. Bought 1/5 of a position today.
No matter what the price of a barrel, they all need to buy the rig to years of solid bookings.produce it. HP is good at making rigs, having a 5-6They have a nice dividend to go along with it.
Beginning start price $69.89.
I expect at least a point a week from this stock, for the next five years.
Scores very well in screens of value and financial strength. HP's FlexRigs are newest and best drilling rigs in the industry.
This is a real-life holding of mine through my investment club.Sales grew at a 6% rate last year. EPS has grown at an annual compound rate of 25% over the past 2 years. The pre-tax profit margin has been increasing in each of the past 3 years, as has the earned-on-equity. The debt has been falling for 6 years, and was below 2% in 2013, which is great. The current P/E is above historic averages, but lower than the highs set in 4 of the last 5 years, and at only a P/E of 13, this is not too outrageous. The PEG ratio is a very low 0.51. The company has raised its dividend in each of the past 4 years, and increased it by more than triple last year, so that is a great sign.I think this stock could grow 18% or more over the next several years. Add in a dividend that last year yielded almost 2%, and you could get a 19% to 20% annual return on your investment. That would double my money in about 3-1/2 years. That is what I am hoping for anyway. We'll see if my hopes pan out.
Jubak likes LNG. HP is in same industry group (Yahoo). Good ROE, low P/B. Momentum. Cold weather.
WILL EVENTUALLY SOLVE THEIR PROBLEMS AND GROW
More domestic rig demand should keep profits high and look for more regular and larger dividend increases as well as sales of the large stock portfolio that HP acquired in earlier years/
HP has unique AC drill rigs. Great management, fundamentals, low debt, good to shareholders, spend cash wisely, international exposure, efficient and safe operation.
Energy, energy, energy!
This rig provider is gonna to be safe for a while with it's first mover advantage of AC rigs.That will protect it's margins for a few years by charging it at premium day-rates.
Diluted TTM earnings per share at 5.34, and a MRQ book value per share value at 36.28, implies a Graham Number fair value = sqrt(22.5*5.34*36.28) = $66.02. Based on the stock's price at $53.67, this implies a potential upside of 23.02% from current levels.
World's largest PC vendor selling the ONLY OS that normal people use - Windows. None of that iOS/Android geek stuff for them.
Inability to innovate towards the cloud.
Most advanced land rigs in high demand in US shale
Well managed company with a newer fleet of flex rigs that allow them to finish a job much quicker than their competitors. The differential allows them to charge a premium to other types of rigs while still giving the customer good cost savings. All said, they are a leader in U.S. unconventional drilling in the shale oil and gas fields. Meanwhile, their valuation is cheap here on a historical basis. My 18 - 24-month price target is $80 - $100.
Drilling more complex wells is a long term trend and HP stands to benefit from it.
HP thinks of the user of it's equipment-moving platform,etc. which produces shorter work times,more safety more efficient colletion of resourses.
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