Patterson-UTI Energy Inc.
Find Ratings ReportsPATTERSON-UTI ENERGY INC's gross profit margin for the fourth quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. PATTERSON-UTI ENERGY INC has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 77.10% 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 | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Net Sales ($mil) | 787.33 | 246.89 |
| EBITDA ($mil) | 184.7 | 39.96 |
| EBIT ($mil) | -26.45 | -117.26 |
| Net Income ($mil) | 195.4 | -78.12 |
| Balance Sheet | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 42.83 | 35.15 |
| Total Assets ($mil) | 5758.86 | 3804.61 |
| Total Debt ($mil) | 866.78 | 598.44 |
| Equity ($mil) | 3982.49 | 2248.72 |
| Profitability | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Gross Profit Margin | 27.87 | 23.29 |
| EBITDA Margin | 23.45 | 16.18 |
| Operating Margin | -3.36 | -47.5 |
| Sales Turnover | 0.41 | 0.24 |
| Return on Assets | 0.1 | -8.37 |
| Return on Equity | 0.14 | -14.16 |
| Debt | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Current Ratio | 1.37 | 1.07 |
| Debt/Capital | 0.18 | 0.21 |
| Interest Expense | 10.54 | 8.64 |
| Interest Coverage | -2.51 | -13.57 |
| Share Data | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Shares outstanding (mil) | 222.46 | 148.13 |
| Div / share | 0.02 | 0.02 |
| EPS | 0.88 | -0.53 |
| Book value / share | 17.9 | 15.18 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3925648.0 | 3366682.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 3.18 and a significant discount versus the industry average of 3.16. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, PATTERSON-UTI ENERGY INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PTEN NM | Peers 64.26 | PTEN 15.02 | Peers 192.26 | |||||||||||||||||||||
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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 42.29 | Peers 133.28 | PTEN NA | Peers 0.63 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. PTEN is trading at a significant premium to its peers. |
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 1.13 | Peers 3.16 | PTEN 93.55 | Peers 338.04 | |||||||||||||||||||||
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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. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PTEN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
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Sales Growth |
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| PTEN 1.92 | Peers 2.60 | PTEN 157.31 | Peers 28.67 | |||||||||||||||||||||
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Discount. 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 significant discount to 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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