| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | — | 17.8x | Top tier | |
Growth | 41 | 16.6% | 7.1% | Around median | |
Quality | 19 | 0.1% | 4.5% | Bottom tier | |
Safety | 56 | 2.2x | 2.6x | Around median | |
Capital Return | 37 | 0.57% | 2.12% | Bottom tier | |
Momentum | 92 | 68.3% | 2.9% | Top tier | |
Sentiment | 41 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Helmerich & Payne provides onshore and offshore drilling solutions through three operating segments: North America Solutions, International Solutions, and Offshore Solutions. The company relies on its high-specification FlexRig fleet and automation technologies such as FlexRobotics and automated drilling applications, generating revenue and margins from rig operations, performance-based contracts, and offshore asset management contracts. North America Solutions was the most important operating driver in Q3 fiscal 2026, while Argentina, Saudi Arabia, and Bahrain added international diversification, and the offshore business provided stable cash flows with limited capital requirements.
In Q3 fiscal 2026, revenue exceeded $1 billion, up 11% sequentially, while net income reached $75.7 million and diluted earnings per share were $0.74. However, the sale of Utica Square supported the reported result; after excluding this effect and certain other items, the company recorded an adjusted loss of $0.11 per share. Free cash flow was $98 million, adjusted earnings before interest, taxes, depreciation, and amortization were $236 million, and total capital expenditures were $70 million.
North America Solutions direct margin reached $241 million, with an average of 142 contracted rigs and a daily margin of $18.7 thousand, up more than $1,000 sequentially. International Solutions generated a direct margin of $31 million, supported by Latin America, while Offshore Solutions recorded $29 million with a contribution from performance bonuses, three active rigs, and 30 management contracts. All three operating segments exceeded the midpoint of their direct-margin guidance ranges during Q3 fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $43.6, within a relatively narrow range of $41 to $50, and the average is close to the upper end of the 52-week range of $45, while the consensus remains Neutral. No meaningful price-to-earnings multiple is available in the data because the net result for the twelve months ended in 2026 was a loss of $375.4 million and earnings per share were approximately negative $3.76; therefore, the valuation depends more heavily on a recovery in earnings and free cash flow and the execution of debt and cost reductions than on stable realized earnings.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue exceeded $1 billion, up 11% sequentially, and adjusted earnings before interest, taxes, depreciation, and amortization reached $236 million. North America Solutions led the improvement with an average of 142 rigs and a direct margin of $241 million, including a daily margin of $18.7 thousand. International Solutions also added $31 million of direct margin, and Offshore Solutions added $29 million. Nevertheless, reported earnings per share of $0.74 benefited from the sale of Utica Square, while the adjusted loss was $0.11 per share after excluding selected items.
The company was operating nine rigs in Vaca Muerta with an approximately 25% market share at the August 6, 2026 call. It contracted the last idle FlexRig rig in Argentina and three additional rigs that will be exported from the United States, raising the planned total to 15 rigs. Operating efficiency supports this expansion, as a well was completed 13% faster than the operator's previous record and 15% below its budget. The company also deployed AutoSlide in a way that eliminated manual sliding operations in the cited application.
The second FlexRobotics package had moved to a rig belonging to a major global oil customer in the Permian by Q3 fiscal 2026. According to management, the first robotic rig exceeded the targeted median performance level and became the best-performing rig for a customer operating a fleet numbering in the high twenties. The company aims to deploy five robotic rigs by February 2027. If the same field performance continues, it could support technology adoption and performance-based contracts without relying exclusively on adding conventional rigs.
The conflict in the region affected personnel movements, logistics, and the pace of rig reactivations during Q3 fiscal 2026. The rigs in Iraq and Bahrain remained suspended during that quarter, and some rig reactivations in Saudi Arabia were delayed, although the number of operating rigs there reached 22 after five reactivated rigs began operating. The two Bahrain rigs resumed operations in Q4 fiscal 2026, but the company did not include the sixth and seventh Saudi rigs in its guidance for that quarter. It therefore provided expected international direct-margin guidance of between $25 million and $45 million for Q4 fiscal 2026.
The company repaid a $400 million term loan ahead of schedule, then shifted its focus to a $350 million note due at the end of 2027. Management aims to reduce net debt to one times earnings before interest, taxes, depreciation, and amortization, supported by free cash flow of $98 million in Q3 fiscal 2026. The plan includes reducing corporate costs by an annualized $40 million and generating more than $160 million from asset sales by the end of fiscal 2027. Conversely, the company expects cash tax payments of between $150 million and $180 million and capital expenditures of between $270 million and $310 million in fiscal 2026.
The analyst consensus is Neutral, and the average price target is $43.6 within a range of $41 to $50. The average target is close to the high end of the 52-week range of $45, reflecting expectations of operating improvement while retaining a degree of caution. The price-to-earnings multiple does not provide a useful anchor because the net loss for the twelve months ended in 2026 was $375.4 million and earnings per share were approximately negative $3.76. Therefore, justification for the valuation depends on converting growth in rigs and margins into sustainable underlying earnings while reducing debt and delivering cost savings.
