PATTERSON-UTI ENERGY INC (PTEN)
US7034811015 - Common Stock
We assign a fundamental rating of 4 out of 10 to PTEN. PTEN was compared to 65 industry peers in the Energy Equipment & Services industry. PTEN has only an average score on both its financial health and profitability. PTEN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PTEN had positive earnings in the past year.
PTEN had a positive operating cash flow in the past year.
In multiple years PTEN reported negative net income over the last 5 years.
PTEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.74%, PTEN is in line with its industry, outperforming 49.23% of the companies in the same industry.
PTEN has a Return On Equity of 4.17%. This is comparable to the rest of the industry: PTEN outperforms 41.54% of its industry peers.
PTEN has a Return On Invested Capital (5.75%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 4.17% | ||
| ROIC | 5.75% |
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 (4.07%) which is in line with its industry peers.
PTEN has a Operating Margin (8.66%) which is in line with its industry peers.
PTEN's Gross Margin of 30.61% is in line compared 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.66% | ||
| PM (TTM) | 4.07% | ||
| GM | 30.61% |
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
PTEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PTEN has more shares outstanding
PTEN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PTEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.97 indicates that PTEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
PTEN's Altman-Z score of 1.97 is in line compared to the rest of the industry. PTEN outperforms 55.38% of its industry peers.
PTEN has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as PTEN would need 3.07 years to pay back of all of its debts.
PTEN has a Debt to FCF ratio of 3.07. This is in the better half 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.
The Debt to Equity ratio of PTEN (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.74
WACC7.76%
2.3 Liquidity
PTEN has a Current Ratio of 1.48. 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 Current ratio (1.48) than 72.31% of its industry peers.
PTEN has a Quick Ratio of 1.28. This is a normal value and indicates that PTEN is financially healthy and should not expect problems in meeting its short term obligations.
PTEN's Quick ratio of 1.28 is on the low side compared to the rest of the industry. PTEN is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
PTEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.67%.
The Revenue has grown by 56.61% in the past year. This is a very strong growth!
Measured over the past years, PTEN shows a small growth in Revenue. The Revenue has been growing by 4.50% on average per year.
EPS 1Y (TTM)-66.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-88.89%
Revenue 1Y (TTM)56.61%
Revenue growth 3Y54.51%
Revenue growth 5Y4.5%
Sales Q2Q%77.65%
3.2 Future
The Earnings Per Share is expected to decrease by -3.95% on average over the next years.
The Revenue is expected to grow by 11.46% on average over the next years. This is quite good.
EPS Next Y-58.49%
EPS Next 2Y-14.95%
EPS Next 3Y7.03%
EPS Next 5Y-3.95%
Revenue Next Year44.91%
Revenue Next 2Y24.27%
Revenue Next 3Y17.65%
Revenue Next 5Y11.46%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.96 indicates a rather expensive valuation of PTEN.
PTEN's Price/Earnings ratio is in line with the industry average.
PTEN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 11.44, the valuation of PTEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PTEN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PTEN to the average of the S&P500 Index (20.59), we can say PTEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTEN is valued cheaper than 83.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PTEN indicates a somewhat cheap valuation: PTEN is cheaper than 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.95%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, 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 3.04. PTEN pays more dividend than 87.69% of the companies in the same industry.
PTEN's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
On average, the dividend of PTEN grows each year by 17.94%, which is quite nice.
PTEN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PTEN decreased in the last 3 years.
Dividend Growth(5Y)17.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
PTEN pays out 58.46% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of PTEN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP58.46%
EPS Next 2Y-14.95%
EPS Next 3Y7.03%
PATTERSON-UTI ENERGY INC
NASDAQ:PTEN (7/26/2024, 7:00:01 PM)
After market: 10.43 0 (0%)10.43
-0.01 (-0.1%)
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 Cap4.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 11.44 | ||
| 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 | 2.74% | ||
| ROE | 4.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.66% | ||
| PM (TTM) | 4.07% | ||
| GM | 30.61% | ||
| 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.28 | ||
| 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)-66.67%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-58.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)56.61%
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