Patterson-UTI Energy, Inc. Fundamental Analysis (NASDAQ: PTEN)
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) shows weak financial fundamentals with a PE ratio of -49.78, profit margin of -1.92%, and ROE of -2.82%. The company generates $4.7B in annual revenue with weak year-over-year growth of -10.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PTEN's fundamental strength across five key dimensions:
Efficiency Score
WeakPTEN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPTEN trades at attractive valuation levels.
Growth Score
ModeratePTEN shows steady but slowing expansion.
Financial Health Score
ExcellentPTEN maintains a strong and stable balance sheet.
Profitability Score
WeakPTEN struggles to sustain strong margins.
Key Financial Metrics
Is PTEN Expensive or Cheap?
P/E Ratio
PTEN trades at -49.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PTEN's PEG of -0.38 indicates potential undervaluation.
Price to Book
The market values Patterson-UTI Energy, Inc. at 1.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.92 times EBITDA. This is generally considered low.
How Well Does PTEN Make Money?
Net Profit Margin
For every $100 in sales, Patterson-UTI Energy, Inc. keeps $-1.92 as profit after all expenses.
Operating Margin
Core operations generate -1.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.82 in profit for every $100 of shareholder equity.
ROA
Patterson-UTI Energy, Inc. generates $-1.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Patterson-UTI Energy, Inc. produces operating cash flow of $732.74M, showing steady but balanced cash generation.
Free Cash Flow
Patterson-UTI Energy, Inc. produces free cash flow of $177.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
PTEN converts 4.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-49.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How PTEN Stacks Against Its Sector Peers
| Metric | PTEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -49.78 | 20.94 | Better (Cheaper) |
| ROE | -2.82% | 1271.00% | Weak |
| Net Margin | -1.92% | 1258.00% | Weak |
| Debt/Equity | 0.41 | -1.74 (disorted) | Distorted |
| Current Ratio | 1.75 | 2.22 | Neutral |
| ROA | -1.67% | 4309.00% | Weak |
PTEN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Patterson-UTI Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.50%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
94.29%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
69.01%
Industry Style: Cyclical, Value, Commodity
High Growth