Patterson-UTI Energy Inc
Find Ratings ReportsPATTERSON-UTI ENERGY INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. PATTERSON-UTI ENERGY INC has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 50.62% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 579.19 | 193.91 |
| EBITDA ($mil) | 128.48 | 41.82 |
| EBIT ($mil) | -90.85 | -129.15 |
| Net Income ($mil) | -92.18 | -85.87 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 40.13 | 209.63 |
| Total Assets ($mil) | 5404.06 | 4211.47 |
| Total Debt ($mil) | 713.61 | 826.89 |
| Equity ($mil) | 3617.8 | 2401.83 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 26.24 | 30.38 |
| EBITDA Margin | 22.18 | 21.56 |
| Operating Margin | -15.69 | -66.61 |
| Sales Turnover | 0.25 | 0.29 |
| Return on Assets | -5.88 | -10.47 |
| Return on Equity | -8.78 | -18.36 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 1.21 | 1.56 |
| Debt/Capital | 0.16 | 0.26 |
| Interest Expense | 9.08 | 10.68 |
| Interest Coverage | -10.01 | -12.1 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 213.33 | 147.74 |
| Div / share | 0.02 | 0.02 |
| EPS | -0.46 | -0.58 |
| Book value / share | 16.96 | 16.26 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4522529.0 | 4248936.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.91 indicates a significant discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 2.47. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, PATTERSON-UTI ENERGY INC seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PTEN NM | Peers 354.18 | PTEN 17.16 | Peers 25.73 | |||||||||||||||||||||
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Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. PTEN's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PTEN is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
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Price to Earnings/Growth |
|
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| PTEN NM | Peers 51.93 | PTEN NA | Peers 0.33 | |||||||||||||||||||||
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Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. PTEN's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
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Earnings Growth |
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| PTEN 0.91 | Peers 2.47 | PTEN 34.34 | Peers 31.36 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PTEN is trading at a significant discount to its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PTEN is expected to keep pace with its peers on the basis of earnings growth. |
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| Price/Sales |
|
Sales Growth |
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| PTEN 2.46 | Peers 2.45 | PTEN 9.29 | Peers -7.75 | |||||||||||||||||||||
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Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PTEN is trading at a valuation on par with its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. PTEN has a sales growth rate that significantly exceeds its peers. |
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