Patterson-UTI Energy, Inc.

Valuation Analysis

About the Company

Patterson-UTI Energy, Inc., through its subsidiaries, provides drilling and completion services to oil and natural gas exploration and production companies in the United States, Canada, Colombia, and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment engages in the provision of contract and directional drilling, and measurement-while-drilling (MWD) services in onshore oil and natural gas basins; supply and rental of downhole performance motors, such as Mpact drilling motors, and Mpower MWD systems; electrical controls and automation to the energy, marine, and mining industries; rig fleet evaluation; and drilling technology service. This segment also provides software and services, such a

Patterson-UTI Energy, Inc. Stock at a Glance

Patterson-UTI Energy, Inc. (PTEN) is currently trading at $11.49 with a market capitalization of $4.4B. The 52-week range spans from $5.10 to $13.08; the current price is 12.2% below the yearly high. Year-over-year revenue growth stands at -12.7%.

💰 Dividend

Patterson-UTI Energy, Inc. pays an annual dividend of $0.40 per share, representing a yield of 3.48%. The payout ratio stands at 213.33%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

14 analysts rate Patterson-UTI Energy, Inc. (PTEN) on consensus: Buy. The average price target is $13.18, implying +14.7% from the current price. Analyst price targets range from $8.00 to $19.00.

Patterson-UTI Energy, Inc.: The Investment Case in Detail

Patterson-UTI Energy, Inc. (PTEN) operates in the Energy — specifically Oil & Gas Drilling — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue is contracting at -12.7% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders.

Valuation in Context

With a PEG ratio of 0.73, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 6.21x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (8.32%).

Trading Data

💵 Dividend Info

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