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PATTERSON-UTI ENERGY INC (PTEN) Stock Fundamental Analysis

NASDAQ:PTEN - Nasdaq - US7034811015 - Common Stock - Currency: USD

8.2  -0.07 (-0.85%)

Fundamental Rating

3

PTEN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 58 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

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.
In the past 5 years PTEN always reported a positive cash flow from operatings.
PTEN Yearly Net Income VS EBIT VS OCF VS FCFPTEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

1.2 Ratios

With a Return On Assets value of -14.33%, PTEN is not doing good in the industry: 91.38% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -23.99%, PTEN is doing worse than 86.21% of the companies in the same industry.
PTEN has a Return On Invested Capital of 3.17%. This is in the lower half of the industry: PTEN underperforms 79.31% of its industry peers.
Industry RankSector 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
PTEN Yearly ROA, ROE, ROICPTEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

PTEN's Operating Margin of 3.24% is on the low side compared to the rest of the industry. PTEN is outperformed by 82.76% of its industry peers.
With a Gross Margin value of 27.94%, PTEN perfoms like the industry average, outperforming 56.90% of the companies in the same industry.
In the last couple of years the Gross Margin of PTEN has grown nicely.
Industry RankSector 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%
PTEN Yearly Profit, Operating, Gross MarginsPTEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60

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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.
Compared to 1 year ago, PTEN has more shares outstanding
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.
PTEN Yearly Shares OutstandingPTEN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
PTEN Yearly Total Debt VS Total AssetsPTEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 1.75, we must say that PTEN is in the distress zone and has some risk of bankruptcy.
PTEN has a Altman-Z score (1.75) which is comparable to the rest of the industry.
The Debt to FCF ratio of PTEN is 2.22, which is a good value as it means it would take PTEN, 2.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.22, PTEN is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that PTEN is not too dependend on debt financing.
The Debt to Equity ratio of PTEN (0.35) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 2.22
Altman-Z 1.75
ROIC/WACC0.37
WACC8.48%
PTEN Yearly LT Debt VS Equity VS FCFPTEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 1.52 indicates that PTEN should not have too much problems paying its short term obligations.
PTEN's Current ratio of 1.52 is on the low side compared to the rest of the industry. PTEN is outperformed by 68.97% 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 65.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.32
PTEN Yearly Current Assets VS Current LiabilitesPTEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

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4

3. Growth

3.1 Past

The earnings per share for PTEN have decreased strongly by -79.62% in the last year.
PTEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 73.10%.
PTEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.50% yearly.
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

Based on estimates for the next years, PTEN will show a decrease in Earnings Per Share. The EPS will decrease by -3.95% on average per year.
Based on estimates for the next years, PTEN will show a quite strong growth in Revenue. The Revenue will grow by 10.37% on average per year.
EPS Next Y-204.19%
EPS Next 2Y-44.12%
EPS Next 3Y-36.67%
EPS Next 5Y-3.95%
Revenue Next Year33.64%
Revenue Next 2Y12.84%
Revenue Next 3Y10.16%
Revenue Next 5Y10.37%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
PTEN Yearly Revenue VS EstimatesPTEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2B 4B 6B
PTEN Yearly EPS VS EstimatesPTEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 -1 -2

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.62, PTEN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PTEN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.28. PTEN is around the same levels.
PTEN is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 25.62
Fwd PE N/A
PTEN Price Earnings VS Forward Price EarningsPTEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PTEN indicates a rather cheap valuation: PTEN is cheaper than 94.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PTEN is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.62
EV/EBITDA 3.16
PTEN Per share dataPTEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

PTEN's earnings are expected to decrease with -36.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.12%
EPS Next 3Y-36.67%

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5

5. Dividend

5.1 Amount

PTEN has a Yearly Dividend Yield of 3.55%.
PTEN's Dividend Yield is rather good when compared to the industry average which is at 3.31. PTEN pays more dividend than 89.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, PTEN pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.55%

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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.94%
Div Incr Years2
Div Non Decr Years3
PTEN Yearly Dividends per sharePTEN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0 0 0 0

5.3 Sustainability

The earnings of PTEN are negative and hence is the payout ratio. PTEN will probably not be able to sustain this dividend level.
DP-15.09%
EPS Next 2Y-44.12%
EPS Next 3Y-36.67%
PTEN Yearly Income VS Free CF VS DividendPTEN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M -600M -800M

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PATTERSON-UTI ENERGY INC

NASDAQ:PTEN (1/30/2025, 3:46:08 PM)

8.2

-0.07 (-0.85%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners102.33%
Inst Owner Change0.08%
Ins Owners2.36%
Ins Owner Change1.4%
Market Cap3.20B
Analysts80.87
Price Target10.81 (31.83%)
Short Float %6.41%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 3.55%
Yearly Dividend0.32
Dividend Growth(5Y)17.94%
DP-15.09%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-107.61%
Min EPS beat(2)-135.25%
Max EPS beat(2)-79.97%
EPS beat(4)1
Avg EPS beat(4)-54.72%
Min EPS beat(4)-135.25%
Max EPS beat(4)17.12%
EPS beat(8)4
Avg EPS beat(8)-25.72%
EPS beat(12)7
Avg EPS beat(12)19.71%
EPS beat(16)10
Avg EPS beat(16)15.59%
Revenue beat(2)1
Avg Revenue beat(2)-3.25%
Min Revenue beat(2)-6.89%
Max Revenue beat(2)0.39%
Revenue beat(4)2
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-6.89%
Max Revenue beat(4)3.08%
Revenue beat(8)5
Avg Revenue beat(8)0.65%
Revenue beat(12)8
Avg Revenue beat(12)1.77%
Revenue beat(16)8
Avg Revenue beat(16)1.01%
PT rev (1m)-1.11%
PT rev (3m)-12.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-163.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-569.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.06%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-2.88%
Valuation
Industry RankSector Rank
PE 25.62
Fwd PE N/A
P/S 0.55
P/FCF 5.62
P/OCF 2.44
P/B 0.9
P/tB 1.51
EV/EBITDA 3.16
EPS(TTM)0.32
EY3.9%
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)1.46
FCFY17.79%
OCF(TTM)3.37
OCFY41.04%
SpS14.87
BVpS9.13
TBVpS5.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -14.33%
ROE -23.99%
ROCE 3.68%
ROIC 3.17%
ROICexc 3.25%
ROICexgc 4.58%
OM 3.24%
PM (TTM) N/A
GM 27.94%
FCFM 9.81%
ROA(3y)-4.63%
ROA(5y)-9.57%
ROE(3y)-8.75%
ROE(5y)-16.23%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.95%
GM growth 5Y2.99%
F-Score5
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 2.22
Debt/EBITDA 0.89
Cap/Depr 62.15%
Cap/Sales 12.82%
Interest Coverage 3.43
Cash Conversion 94.81%
Profit Quality N/A
Current Ratio 1.52
Quick Ratio 1.32
Altman-Z 1.75
F-Score5
WACC8.48%
ROIC/WACC0.37
Cap/Depr(3y)64.68%
Cap/Depr(5y)50.07%
Cap/Sales(3y)14.53%
Cap/Sales(5y)14.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-79.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-105%
EPS Next Y-204.19%
EPS Next 2Y-44.12%
EPS Next 3Y-36.67%
EPS Next 5Y-3.95%
Revenue 1Y (TTM)73.1%
Revenue growth 3Y54.51%
Revenue growth 5Y4.5%
Sales Q2Q%34.19%
Revenue Next Year33.64%
Revenue Next 2Y12.84%
Revenue Next 3Y10.16%
Revenue Next 5Y10.37%
EBIT growth 1Y-56.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year184.28%
EBIT Next 3Y38.78%
EBIT Next 5Y27.86%
FCF growth 1Y761.62%
FCF growth 3Y43.02%
FCF growth 5Y34.34%
OCF growth 1Y327.33%
OCF growth 3Y53.36%
OCF growth 5Y6.6%