* Note: Prices are in Million (M) USD.
Description:
Patterson-UTI Energy, Inc. is a leading provider of onshore contract drilling services for oil and natural gas operators in the United States and Canada, strategically headquartered in Houston, Texas. The company operates a fleet of modern drilling rigs and offers a range of complementary services, including pressure pumping and directional drilling, aimed at optimizing well performance. Committed to innovation and safety, Patterson-UTI leverages advanced technology and skilled personnel to deliver efficient and cost-effective solutions to its clients in a dynamic energy sector. With a strong focus on operational excellence, Patterson-UTI is well-positioned to capitalize on market opportunities and support the ongoing demand for energy resources.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $186 M
Debt : $1,277 M
EBITDA : $91 M
Net Debt (Debt - Cash): $1,091 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Energy
Industry: Oil & gas drilling
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $101 M
Average Revenue: $2,383 M
Revenue Converted To Free Cash Flow (%): 4.2%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,378 M
Revenue 5 Years Ago (2019-12-31): $2,471 M
Total Growth over 5 Years: 117.7%
5-Year Revenue CAGR (Historical): 16.8%
Forward 5-Year CAGR (Tapered): 11.8%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $397 M
Share Count 5 Years Ago (2020-12-31): $188 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.47
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 6%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.47
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 0.3%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $5.81
52-Week Low: $4.98
Threshold Price (15% Above 52-Week Low): $5.72
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,238 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.84
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $1.25
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 17 points to above Patterson-UTI Energy Inc (PTEN) stock.
Last 9 Years Avg PE 12.22, Fair Value PE 12, Industry Based PE 15, Growth Based PE 15, RCFC Based PE 4.24, ROE Based PE 0.3, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 7 values, average assigned is 10.99. The fair value of Patterson-UTI Energy Inc (PTEN) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
