PATTERSON-UTI ENERGY INC (PTEN)

US7034811015 - Common Stock

12.165  +0.11 (+0.95%)

Fundamental Rating

5

Overall PTEN gets a fundamental rating of 5 out of 10. We evaluated PTEN against 66 industry peers in the Energy Equipment & Services industry. PTEN has an average financial health and profitability rating. PTEN has a correct valuation and a medium growth rate.



4

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.
The reported net income has been mixed in the past 5 years: PTEN reported negative net income in multiple years.
Each year in the past 5 years PTEN had a positive operating cash flow.

1.2 Ratios

The Return On Assets of PTEN (3.32%) is comparable to the rest of the industry.
The Return On Equity of PTEN (5.12%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.06%, PTEN perfoms like the industry average, outperforming 43.94% 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 better Profit Margin (5.94%) than 60.61% of its industry peers.
Looking at the Operating Margin, with a value of 10.82%, PTEN is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
PTEN has a better Gross Margin (32.20%) than 60.61% 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

PTEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PTEN has been increased compared to 1 year ago.
The number of shares outstanding for PTEN has been increased compared to 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 has a Altman-Z score of 1.97. This is comparable to the rest of the industry: PTEN outperforms 57.58% of its industry peers.
The Debt to FCF ratio of PTEN is 3.32, which is a good value as it means it would take PTEN, 3.32 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.32, PTEN is doing good in the industry, outperforming 63.64% of the companies in the same industry.
PTEN has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, PTEN perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 3.32
Altman-Z 1.97
ROIC/WACC0.77
WACC7.87%

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.
Looking at the Current ratio, with a value of 1.41, PTEN is doing worse than 71.21% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that PTEN should not have too much problems paying its short term obligations.
PTEN's Quick ratio of 1.24 is on the low side compared to the rest of the industry. PTEN is outperformed by 63.64% 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.
The Revenue has grown by 56.61% in the past year. This is a very strong growth!
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

The Earnings Per Share is expected to grow by 11.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y-46.2%
EPS Next 2Y-7.12%
EPS Next 3Y8.83%
EPS Next 5Y11.93%
Revenue Next Year52.01%
Revenue Next 2Y27.2%
Revenue Next 3Y18.25%
Revenue Next 5Y14.87%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.65 indicates a reasonable valuation of PTEN.
Based on the Price/Earnings ratio, PTEN is valued cheaper than 84.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, PTEN is valued rather cheaply.
PTEN is valuated rather expensively with a Price/Forward Earnings ratio of 17.95.
The rest of the industry has a similar Price/Forward Earnings ratio as PTEN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, PTEN is valued a bit cheaper.
Industry RankSector Rank
PE 9.65
Fwd PE 17.95

4.2 Price Multiples

PTEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PTEN is cheaper than 72.73% of the companies in the same industry.
69.70% of the companies in the same industry are more expensive than PTEN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.73
EV/EBITDA 5.1

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.12%
EPS Next 3Y8.83%

5

5. Dividend

5.1 Amount

PTEN has a Yearly Dividend Yield of 2.70%.
Compared to an average industry Dividend Yield of 2.41, PTEN pays a better dividend. On top of this PTEN pays more dividend than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PTEN has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.7%

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.
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 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-7.12%
EPS Next 3Y8.83%

PATTERSON-UTI ENERGY INC

NASDAQ:PTEN (3/28/2024, 12:40:02 PM)

12.165

+0.11 (+0.95%)

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 Cap4.97B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
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 9.65
Fwd PE 17.95
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-46.2%
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