Why NASDAQ:PTEN provides a good dividend, while having solid fundamentals.

Last update: Feb 1, 2024

Our stock screener has singled out PATTERSON-UTI ENERGY INC (NASDAQ:PTEN) as a promising choice for dividend investors. NASDAQ:PTEN not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Analysis for NASDAQ:PTEN

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:PTEN has been awarded a 7 for its dividend quality:

Compared to an average industry Dividend Yield of 2.72, PTEN pays a better dividend. On top of this PTEN pays more dividend than 87.69% of the companies listed in the same industry.
PTEN's Dividend Yield is a higher than the S&P500 average which is at 2.47.
The dividend of PTEN is nicely growing with an annual growth rate of 17.97%!
PTEN has paid a dividend for at least 10 years, which is a reliable track record.
29.49% of the earnings are spent on dividend by PTEN. This is a low number and sustainable payout ratio.
PTEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Evaluating Health: NASDAQ:PTEN

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PTEN has received a 4 out of 10:

PTEN has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as PTEN would need 3.97 years to pay back of all of its debts.
PTEN has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.

Assessing Profitability for NASDAQ:PTEN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PTEN scores a 5 out of 10:

PTEN's Profit Margin of 8.49% is fine compared to the rest of the industry. PTEN outperforms 78.46% of its industry peers.
PTEN's Profit Margin has improved in the last couple of years.
PTEN's Operating Margin of 12.88% is fine compared to the rest of the industry. PTEN outperforms 66.15% of its industry peers.
The Gross Margin of PTEN (34.10%) is better than 64.62% of its industry peers.
In the last couple of years the Gross Margin of PTEN has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of PTEN for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.