Of note is the ratio of Patterson Uti Energy Inc's sales and general administrative expense to its total operating expenses; merely 4.26% of US stocks have a lower such ratio.
Revenue growth over the past 12 months for Patterson Uti Energy Inc comes in at -41.28%, a number that bests only 5.56% of the US stocks we're tracking.
Patterson Uti Energy Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 65.41%, greater than the shareholder yield of 95.16% of stocks in our set.
Stocks that are quantitatively similar to PTEN, based on their financial statements, market capitalization, and price volatility, are ERF, BRY, PDCE, RRC, and TPRE.
Patterson-UTI Energy provides onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company was founded in 1978 and is based in Houston, Texas.
PTEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Patterson Uti Energy Inc. To summarize, we found that Patterson Uti Energy Inc ranked in the 95th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 5677.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PTEN, they are:
The compound growth rate in the free cash flow of Patterson Uti Energy Inc over the past 5.01 years is 0.99%; that's better than 85.97% of cash flow producing equities in the Energy sector, where it is classified.
33% of the company's capital comes from equity, which is greater than just 14.96% of stocks in our cash flow based forecasting set.
Patterson Uti Energy Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -14.61. This coverage rate is greater than that of just 6.94% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PTEN, try WTTR, CELP, SOI, USAC, and CPG.
Patterson-UTI Energy (PTEN) announced an average of 59 drilling rigs operating for the month of August vs. 60 in July.For the two months ended August 31, 2020, the company had an average of 59 drilling rigs operating.Press release...
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Drilling Activity To Drop, But Fracking May Stabilize in Q3 Source Patterson-UTI Energy (PTEN) has a couple of difficult quarters ahead, although it can financially withstand the pressure. Low utilization in the post-pandemic energy market will continue to see the company losing rigs in the next four quarters. After reducing...