PATTERSON-UTI ENERGY INC (PTEN)

US7034811015 - Common Stock

11.275  -0.23 (-2.04%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to PTEN. PTEN was compared to 65 industry peers in the Energy Equipment & Services industry. PTEN has an average financial health and profitability rating. PTEN has a decent growth rate and is not valued too expensively.



4

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.
In multiple years PTEN reported negative net income over the last 5 years.
Each year in the past 5 years PTEN had a positive operating cash flow.

1.2 Ratios

PTEN has a Return On Assets of 3.32%. This is comparable to the rest of the industry: PTEN outperforms 49.23% of its industry peers.
With a Return On Equity value of 5.12%, PTEN perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
With a Return On Invested Capital value of 6.06%, PTEN perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
Industry RankSector Rank
ROA 3.32%
ROE 5.12%
ROIC 6.06%
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

PTEN has a Profit Margin (5.94%) which is in line with its industry peers.
PTEN has a Operating Margin (10.82%) which is comparable to the rest of the industry.
PTEN has a Gross Margin of 32.20%. This is comparable to the rest of the industry: PTEN outperforms 60.00% of its industry peers.
PTEN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.82%
PM (TTM) 5.94%
GM 32.2%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.95%
GM growth 5Y2.99%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PTEN is destroying value.
PTEN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PTEN has been increased compared to 5 years ago.
PTEN has a better debt/assets ratio than last year.

2.2 Solvency

PTEN has an Altman-Z score of 1.91. This is not the best score and indicates that PTEN is in the grey zone with still only limited risk for bankruptcy at the moment.
PTEN's Altman-Z score of 1.91 is in line compared to the rest of the industry. PTEN outperforms 52.31% of its industry peers.
PTEN has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as PTEN would need 3.32 years to pay back of all of its debts.
PTEN's Debt to FCF ratio of 3.32 is fine compared to the rest of the industry. PTEN outperforms 64.62% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that PTEN is not too dependend on debt financing.
PTEN's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. PTEN outperforms 55.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 3.32
Altman-Z 1.91
ROIC/WACC0.75
WACC8.13%

2.3 Liquidity

PTEN has a Current Ratio of 1.41. This is a normal value and indicates that PTEN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PTEN (1.41) is worse than 70.77% of its industry peers.
PTEN has a Quick Ratio of 1.24. This is a normal value and indicates that PTEN is financially healthy and should not expect problems in meeting its short term obligations.
PTEN has a worse Quick ratio (1.24) than 66.15% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 1.24

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 77.46% over the past year.
PTEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 56.61%.
The Revenue has been growing slightly by 4.50% on average over the past years.
EPS 1Y (TTM)77.46%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-67.39%
Revenue 1Y (TTM)56.61%
Revenue growth 3Y54.51%
Revenue growth 5Y4.5%
Revenue growth Q2Q100.93%

3.2 Future

PTEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.93% yearly.
Based on estimates for the next years, PTEN will show a quite strong growth in Revenue. The Revenue will grow by 14.87% on average per year.
EPS Next Y-47.37%
EPS Next 2Y-8.18%
EPS Next 3Y6%
EPS Next 5Y11.93%
Revenue Next Year51.62%
Revenue Next 2Y26.9%
Revenue Next 3Y18.15%
Revenue Next 5Y14.87%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.95, the valuation of PTEN can be described as very reasonable.
Based on the Price/Earnings ratio, PTEN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
PTEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.75.
With a Price/Forward Earnings ratio of 17.00, PTEN is valued on the expensive side.
PTEN's Price/Forward Earnings is on the same level as the industry average.
PTEN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.23, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.95
Fwd PE 17

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PTEN indicates a somewhat cheap valuation: PTEN is cheaper than 72.31% of the companies listed in the same industry.
PTEN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PTEN is cheaper than 70.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.65
EV/EBITDA 4.87

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.18%
EPS Next 3Y6%

5

5. Dividend

5.1 Amount

PTEN has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
PTEN's Dividend Yield is rather good when compared to the industry average which is at 3.27. PTEN pays more dividend than 87.69% of the companies in the same industry.
PTEN's Dividend Yield is comparable with the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 2.82%

5.2 History

On average, the dividend of PTEN grows each year by 17.94%, which is quite nice.
PTEN has been paying a dividend for at least 10 years, so it has a reliable track record.
PTEN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.94%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

PTEN pays out 40.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PTEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.61%
EPS Next 2Y-8.18%
EPS Next 3Y6%

PATTERSON-UTI ENERGY INC

NASDAQ:PTEN (4/22/2024, 10:34:09 AM)

11.275

-0.23 (-2.04%)

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 Cap4.55B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.82%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.95
Fwd PE 17
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 RankSector Rank
ROA 3.32%
ROE 5.12%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.82%
PM (TTM) 5.94%
GM 32.2%
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 Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.41
Quick Ratio 1.24
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)
Growth
EPS 1Y (TTM)77.46%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-47.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)56.61%
Revenue growth 3Y54.51%
Revenue growth 5Y
Revenue growth 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