<div id="readability-page-1"><div><p>Helmerich &amp; Payne (HP) just laid out its next chapter, with longtime CEO John Lindsay set to retire in March 2026 and President Trey Adams stepping up, a transition investors cannot ignore.</p> <p>See our latest analysis for Helmerich &amp; Payne.</p> <p>The leadership handoff lands as momentum has picked up again, with a roughly mid teens 1 month share price return and a strong 90 day share price return. However, the 1 year total shareholder return remains modest and longer term gains are more muted, suggesting sentiment is improving but not euphoric.</p> <p>If this kind of disciplined transition has you thinking about where else management quality and momentum could line up, it might be worth exploring fast growing stocks with high insider ownership.</p> <p>With analysts nudging targets higher but the stock still trading at a sizeable intrinsic discount, is Helmerich &amp; Payne quietly undervalued ahead of its next CEO, or is the market already pricing in the next leg of growth?</p> <h2>Most Popular Narrative: 13.4% Overvalued</h2> <p>Compared with the last close at $30.85, the most followed narrative pegs Helmerich &amp; Payne’s fair value lower, implying a richer market price today.</p> <blockquote> <p><em>The Fair Value estimate has risen moderately from approximately $24.00 to about $27.20, reflecting a higher intrinsic valuation per share.</em></p> <p><em>The future P/E multiple has increased meaningfully from roughly 13.9x to about 16.3x, indicating a higher valuation placed on expected earnings.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see what kind of earnings rebound justifies a richer multiple on a still cyclical driller? The narrative leans on rising margins, steady revenue acceleration and a punchy earnings multiple that looks more like a growth story than a slow moving rig operator. Curious how those moving parts combine into that higher fair value line? Dive in to see the specific profit and revenue assumptions that make this premium valuation add up.</p> <p><strong>Result: Fair Value of $27.20 (OVERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, persistently soft North American rig demand, or deeper industry overcapacity, could cap day rates, compress margins, and derail the upbeat Saudi reactivation story.</p> <p>Find out about the key risks to this Helmerich &amp; Payne narrative.</p> <h2>Another Take on Value</h2> <p>While the most popular narrative flags Helmerich &amp; Payne as 13.4% overvalued, our valuation based on its price to sales ratio tells a different story. At 0.8x sales versus 1.2x for both peers and the wider industry, and a fair ratio of 0.9x, the stock screens as cheap rather than stretched. Is the market misreading cyclical risk, or is this a genuine entry point?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9c031fda-10de-43a3-b874-0c9c4b660f17/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9c031fda-10de-43a3-b874-0c9c4b660f17/chart/ps-multiple-vs-industry"/><figcaption>NYSE:HP PS Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Helmerich &amp; Payne Narrative</h2> <p>If you see the assumptions differently or want to stress test your own view against the numbers, you can build a custom narrative in minutes: Do it your way.</p> <p>A great starting point for your Helmerich &amp; Payne research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Before you move on, lock in your next smart move by scanning fresh opportunities other investors might be overlooking with the Simply Wall Street Screener.</p> <ul> <li>Capture potential mispricings in quality businesses by scanning these 904 undervalued stocks based on cash flows that look cheap relative to their cash flows and fundamentals.</li> <li>Ride powerful income streams by zeroing in on these 12 dividend stocks with yields &gt; 3% that can strengthen your portfolio’s cash generation.</li> <li>Position yourself early in a fast evolving digital ecosystem by targeting these 80 cryptocurrency and blockchain stocks shaping payments, infrastructure, and blockchain innovation.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>Helmerich & Payne (HP) announced a CEO succession plan with John Lindsay retiring in March 2026 and Trey Adams stepping up. This transition coincides with recent share price momentum, though long-term gains remain modest. Analysts suggest HP is overvalued at $30.85, with a fair value of $27.20, despite a higher intrinsic valuation. The stock's price-to-sales ratio indicates it may be undervalued compared to peers. Investors are encouraged to explore other investment opportunities and consider potential risks in the cyclical drilling industry.</p>

Helmerich & Payne (HP): Reassessing Valuation Following CEO Succession Plan and Leadership Transition