PATTERSON-UTI ENERGY INC (PTEN)
US7034811015 - Common Stock
We assign a fundamental rating of 3 out of 10 to PTEN. PTEN was compared to 60 industry peers in the Energy Equipment & Services industry. The financial health of PTEN is average, but there are quite some concerns on its profitability. PTEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PTEN was profitable.
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
With a Return On Assets value of -14.33%, PTEN is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
With a Return On Equity value of -23.99%, PTEN is not doing good in the industry: 88.33% of the companies in the same industry are doing better.
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 75.00% 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
Looking at the Operating Margin, with a value of 3.24%, PTEN is doing worse than 78.33% of the companies in the same industry.
PTEN has a Gross Margin of 27.94%. This is comparable 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.
PTEN has more shares outstanding than it did 1 year ago.
PTEN has more shares outstanding than it did 5 years ago.
PTEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that PTEN is in the distress zone and has some risk of bankruptcy.
PTEN has a Altman-Z score (1.76) which is in line with its industry peers.
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.
PTEN has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
PTEN has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.42
WACC7.61%
2.3 Liquidity
PTEN has a Current Ratio of 1.52. 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 (1.52) than 71.67% of its industry peers.
A Quick Ratio of 1.32 indicates that PTEN should not have too much problems paying its short term obligations.
The Quick ratio of PTEN (1.32) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
PTEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -79.62%.
PTEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 73.10%.
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)-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-202.37%
EPS Next 2Y-43.74%
EPS Next 3Y-41.76%
EPS Next 5Y-3.95%
Revenue Next Year33.59%
Revenue Next 2Y13.22%
Revenue Next 3Y10.49%
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
With a Price/Earnings ratio of 26.12, PTEN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PTEN.
PTEN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for PTEN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTEN is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PTEN indicates a rather cheap valuation: PTEN is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.73 | ||
| EV/EBITDA | 3.18 |
4.3 Compensation for Growth
A cheap valuation may be justified as PTEN's earnings are expected to decrease with -41.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.74%
EPS Next 3Y-41.76%
5. Dividend
5.1 Amount
PTEN has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.50, PTEN pays a better dividend. On top of this PTEN pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, PTEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-15.09%
EPS Next 2Y-43.74%
EPS Next 3Y-41.76%
PATTERSON-UTI ENERGY INC
NASDAQ:PTEN (11/21/2024, 8:00:01 PM)
Premarket: 8.34 -0.02 (-0.24%)8.36
+0.23 (+2.83%)
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 Cap3.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
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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 | 26.12 | ||
| 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-202.37%
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
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y