PROPETRO HOLDING CORP (PUMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PUMP - US74347M1080 - Common Stock
11.39 USD
+0.73 (+6.85%)
Taking everything into account, PUMP scores 3 out of 10 in our fundamental rating. PUMP was compared to 61 industry peers in the Energy Equipment & Services industry. While PUMP seems to be doing ok healthwise, there are quite some concerns on its profitability. PUMP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year PUMP has reported negative net income.
- In the past year PUMP had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: PUMP reported negative net income in multiple years.
- Each year in the past 5 years PUMP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -1.33%, PUMP is doing worse than 70.49% of the companies in the same industry.
- PUMP has a worse Return On Equity (-2.06%) than 67.21% of its industry peers.
- PUMP has a worse Return On Invested Capital (1.00%) than 77.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PUMP is below the industry average of 12.90%.
- The 3 year average ROIC (9.31%) for PUMP is well above the current ROIC(1.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.33% | ||
| ROE | -2.06% | ||
| ROIC | 1% |
ROA(3y)-1.78%
ROA(5y)-4.12%
ROE(3y)-2.7%
ROE(5y)-5.39%
ROIC(3y)9.31%
ROIC(5y)N/A
1.3 Margins
- PUMP has a worse Operating Margin (1.06%) than 77.05% of its industry peers.
- PUMP's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 23.31%, PUMP perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
- In the last couple of years the Gross Margin of PUMP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.06% | ||
| PM (TTM) | N/A | ||
| GM | 23.31% |
OM growth 3YN/A
OM growth 5Y-24.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.62%
GM growth 5Y-1.55%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PUMP is creating some value.
- PUMP has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PUMP has more shares outstanding
- Compared to 1 year ago, PUMP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.50 indicates that PUMP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of PUMP (2.50) is better than 62.30% of its industry peers.
- The Debt to FCF ratio of PUMP is 2.92, which is a good value as it means it would take PUMP, 2.92 years of fcf income to pay off all of its debts.
- PUMP has a Debt to FCF ratio of 2.92. This is in the better half of the industry: PUMP outperforms 68.85% of its industry peers.
- PUMP has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- PUMP has a Debt to Equity ratio of 0.11. This is in the better half of the industry: PUMP outperforms 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.11
WACC8.73%
2.3 Liquidity
- A Current Ratio of 1.26 indicates that PUMP should not have too much problems paying its short term obligations.
- PUMP's Current ratio of 1.26 is on the low side compared to the rest of the industry. PUMP is outperformed by 78.69% of its industry peers.
- PUMP has a Quick Ratio of 1.19. This is a normal value and indicates that PUMP is financially healthy and should not expect problems in meeting its short term obligations.
- PUMP has a Quick ratio of 1.19. This is in the lower half of the industry: PUMP underperforms 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- PUMP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -105.00%.
- Measured over the past years, PUMP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -29.68% on average per year.
- Looking at the last year, PUMP shows a very negative growth in Revenue. The Revenue has decreased by -11.65% in the last year.
- PUMP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.79% yearly.
EPS 1Y (TTM)-105%
EPS 3YN/A
EPS 5Y-29.68%
EPS Q2Q%-115.38%
Revenue 1Y (TTM)-11.65%
Revenue growth 3Y18.2%
Revenue growth 5Y-6.79%
Sales Q2Q%-18.55%
3.2 Future
- Based on estimates for the next years, PUMP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.14% on average per year.
- PUMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.07% yearly.
EPS Next Y-167.02%
EPS Next 2Y-68.86%
EPS Next 3Y-28.81%
EPS Next 5Y21.14%
Revenue Next Year-13.44%
Revenue Next 2Y-6.74%
Revenue Next 3Y-0.57%
Revenue Next 5Y2.07%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- PUMP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for PUMP. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 80.33% of the companies in the same industry are more expensive than PUMP, based on the Enterprise Value to EBITDA ratio.
- PUMP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.77 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
- PUMP's earnings are expected to decrease with -28.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-68.86%
EPS Next 3Y-28.81%
5. Dividend
5.1 Amount
- PUMP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PROPETRO HOLDING CORP / PUMP FAQ
What is the ChartMill fundamental rating of PROPETRO HOLDING CORP (PUMP) stock?
ChartMill assigns a fundamental rating of 3 / 10 to PUMP.
Can you provide the valuation status for PROPETRO HOLDING CORP?
ChartMill assigns a valuation rating of 1 / 10 to PROPETRO HOLDING CORP (PUMP). This can be considered as Overvalued.
How profitable is PROPETRO HOLDING CORP (PUMP) stock?
PROPETRO HOLDING CORP (PUMP) has a profitability rating of 2 / 10.
How financially healthy is PROPETRO HOLDING CORP?
The financial health rating of PROPETRO HOLDING CORP (PUMP) is 5 / 10.