Patterson-UTI Energy, Inc. [PTEN] is following downward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $8.47 after PTEN shares went down by -0.82% during the last trading session. One of the reasons why Basic Materials stocks may go bearish is decreased momentum in the press.
Patterson-UTI Energy, Inc. [NASDAQ:PTEN]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Patterson-UTI Energy, Inc. [PTEN], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give PTEN an Outperform rating. Its stock price has been found in the range of 8.51 to 18.39. This is compared to its latest closing price of $8.54.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Patterson-UTI Energy, Inc. [PTEN] is sitting at 1.92. This is compared to 1 month ago, when its average rating was 1.84.
For the quarter ending in Jun-19 Patterson-UTI Energy, Inc. [PTEN] generated $0.68 billion in sales. That’s 0.77% higher than the average estimate of $0.67 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 24 Oct (In 70 Days).
Fundamental Analysis of Patterson-UTI Energy, Inc. [PTEN]
Now let’s turn to look at profitability: with a current Operating Margin for Patterson-UTI Energy, Inc. [PTEN] sitting at -1.91 and its Gross Margin at +2.22, this company’s Net Margin is now -11.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -1.34, and its Return on Invested Capital has reached -6.00%. Its Return on Equity is -8.59, and its Return on Assets is -5.54. These metrics suggest that this Patterson-UTI Energy, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Patterson-UTI Energy, Inc. [PTEN] has generated a Total Debt to Total Equity ratio of 31.93. Similarly, its Total Debt to Total Capital is 24.20, while its Total Debt to Total Assets stands at 19.15. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 31.93, and its Long-Term Debt to Total Capital is 24.20. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 3.47 and its Total Debt to EBITDA Value is 1.42. The Enterprise Value to Sales for this firm is now 0.90, and its Total Debt to Enterprise Value stands at 0.36. Patterson-UTI Energy, Inc. [PTEN] has a Price to Book Ratio of 0.63, a Price to Cash Flow Ratio of 3.10.
Shifting the focus to workforce efficiency, Patterson-UTI Energy, Inc. [PTEN] earns $415,875 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.81 and its Total Asset Turnover is 0.57. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.68 and its Current Ratio is 1.81. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Patterson-UTI Energy, Inc. [PTEN] has 215.42M shares outstanding, amounting to a total market cap of $1.82B. Its stock price has been found in the range of 8.51 to 18.39. At its current price, it has moved down by -53.94% from its 52-week high, and it has moved down -0.41% from its 52-week low.
This stock’s Beta value is currently 1.50, which indicates that it is 5.68% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 28.14. This stock, according to these metrics, is currently Oversold.
Conclusion: Is Patterson-UTI Energy, Inc. [PTEN] a Reliable Buy?
Patterson-UTI Energy, Inc. [PTEN] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.