PattersonUTI Energy, headquartered in Houston, Texas, provides drilling and pressure pumping services with 10,600 employees across three segments: Drilling Services, Completion Services, and Drilling Products. The company operates primarily in the U.S. and Colombia.
Based on our analysis, PattersonUTI Energy is currently rated 4 out of 5 stars by Cashu, indicating it is undervalued compared to its peers in the energy sector. Several key financial ratios highlight this potential.
The Price-to-Book (PB) Ratio for PattersonUTI is 0.94, significantly lower than the sector average of 1.55. A PB ratio below 1 suggests that the company's stock is trading for less than its book value, indicating potential undervaluation.
PattersonUTI's Net Profit Margin stands at 5.94%, while the sector average is negative at -2.44%. This positive margin demonstrates the company's ability to convert revenues into actual profit, highlighting operational efficiency in a challenging market.
The Return on Equity (ROE) for PattersonUTI is 5.12%, compared to the sector average of -3.76%. A higher ROE suggests that PattersonUTI is more effective in generating profits from its shareholders' equity, which is a strong indicator of financial health.
Additionally, the company boasts a Dividend Yield of 4.08%, exceeding the sector average of 3.54%. This yield indicates a commitment to returning value to shareholders, which can be attractive to income-focused investors.
Finally, PattersonUTI's Return on Assets (ROA) is 3.32%, while the sector average is -4.12%. This ratio reflects the company's efficiency in using its assets to generate earnings, further emphasizing its operational strength.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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