PATTERSON-UTI ENERGY INC (PTEN)
US7034811015 - Common Stock
PTEN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. PTEN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PTEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PTEN had positive earnings in the past year.
In the past year PTEN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PTEN reported negative net income in multiple years.
PTEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PTEN (-14.33%) is worse than 91.67% of its industry peers.
PTEN's Return On Equity of -23.99% is on the low side compared to the rest of the industry. PTEN is outperformed by 86.67% of its industry peers.
PTEN's Return On Invested Capital of 3.17% is on the low side compared to the rest of the industry. PTEN is outperformed by 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.33% | ||
| ROE | -23.99% | ||
| ROIC | 3.17% |
ROA(3y)-4.63%
ROA(5y)-9.57%
ROE(3y)-8.75%
ROE(5y)-16.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 3.24%, PTEN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
PTEN's Gross Margin of 27.94% is in line compared to the rest of the industry. PTEN outperforms 56.67% of its industry peers.
PTEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.24% | ||
| PM (TTM) | N/A | ||
| GM | 27.94% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.95%
GM growth 5Y2.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PTEN is destroying value.
The number of shares outstanding for PTEN has been increased compared to 1 year ago.
Compared to 5 years ago, PTEN has more shares outstanding
PTEN has a better debt/assets ratio than last year.
2.2 Solvency
PTEN has an Altman-Z score of 1.73. This is a bad value and indicates that PTEN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, PTEN is in line with its industry, outperforming 41.67% of the companies in the same industry.
PTEN has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as PTEN would need 2.22 years to pay back of all of its debts.
The Debt to FCF ratio of PTEN (2.22) is better than 68.33% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that PTEN is not too dependend on debt financing.
The Debt to Equity ratio of PTEN (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.42
WACC7.6%
2.3 Liquidity
A Current Ratio of 1.52 indicates that PTEN should not have too much problems paying its short term obligations.
PTEN has a worse Current ratio (1.52) than 70.00% of its industry peers.
PTEN has a Quick Ratio of 1.32. This is a normal value and indicates that PTEN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.32, PTEN is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for PTEN have decreased strongly by -79.62% in the last year.
The Revenue has grown by 73.10% in the past year. This is a very strong growth!
PTEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.50% yearly.
EPS 1Y (TTM)-79.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-105%
Revenue 1Y (TTM)73.1%
Revenue growth 3Y54.51%
Revenue growth 5Y4.5%
Sales Q2Q%34.19%
3.2 Future
PTEN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.95% yearly.
The Revenue is expected to grow by 11.46% on average over the next years. This is quite good.
EPS Next Y-202.76%
EPS Next 2Y-43.98%
EPS Next 3Y-37.5%
EPS Next 5Y-3.95%
Revenue Next Year33.61%
Revenue Next 2Y13.07%
Revenue Next 3Y10.54%
Revenue Next 5Y11.46%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.41, the valuation of PTEN can be described as rather expensive.
PTEN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PTEN to the average of the S&P500 Index (29.48), we can say PTEN is valued slightly cheaper.
PTEN is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTEN is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
PTEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PTEN is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.13 | ||
| EV/EBITDA | 3.12 |
4.3 Compensation for Growth
A cheap valuation may be justified as PTEN's earnings are expected to decrease with -37.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.98%
EPS Next 3Y-37.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, PTEN has a reasonable but not impressive dividend return.
PTEN's Dividend Yield is rather good when compared to the industry average which is at 3.40. PTEN pays more dividend than 86.67% of the companies in the same industry.
PTEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
The dividend of PTEN is nicely growing with an annual growth rate of 17.94%!
PTEN has been paying a dividend for at least 10 years, so it has a reliable track record.
PTEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.94%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
The earnings of PTEN are negative and hence is the payout ratio. PTEN will probably not be able to sustain this dividend level.
DP-15.09%
EPS Next 2Y-43.98%
EPS Next 3Y-37.5%
PATTERSON-UTI ENERGY INC
NASDAQ:PTEN (12/6/2024, 8:09:30 PM)
After market: 7.64 +0.15 (+2%)7.49
-0.64 (-7.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.92B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.33% | ||
| ROE | -23.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.24% | ||
| PM (TTM) | N/A | ||
| GM | 27.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-79.62%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-202.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)73.1%
Revenue growth 3Y54.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y