Patterson UTI Energy Inc (PTEN) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Patterson UTI Energy's price-to-book of 1.29 is above the Oil and Gas Field Services median of 1.29.

Trading below fair value

The share price of $10.42 is below our fair value estimate of $10.63.

Margin of safety under 20%

The price is 2.0% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 22.2% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.0% over the last twelve months; the Oil and Gas Field Services median is 4.6%.

Guidance raised

Patterson UTI Energy raised its fourth quarter depreciation, depletion, amortization, and impairment expense outlook on Oct 28, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -0.8% over the last twelve months and averaged -9.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 0.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Patterson UTI Energy's return on equity of -0.8% is below the Oil and Gas Field Services median of 1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -0.5% over the last twelve months, against a 5-year average of -11.3%.

Net margin below the industry

Patterson UTI Energy's net margin of -0.5% is below the Oil and Gas Field Services median of 0.9%.

High debt

Debt is 40.2% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 44.7% five years ago to 40.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 66.3% of total debt.

Interest not well covered

Operating income covers interest expense 0.6 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.73 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.70; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Patterson UTI Energy paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Patterson UTI Energy yields 3.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 54.3% of free cash flow.