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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2274
Positioning
Market Dominance
Mining
Petroleum And Natural Gas
$2.0B
William A. Hendricks
Patterson-UTI Energy, Inc. provides onshore contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling services. The Company also provides electrical controls and automation to the energy, marine, and mining industries in North America.
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Dates updated upon official exchange announcement.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$VALE Vale S.A. | 75 | 88 | 93 | 67 | - | - | 15.8% | 6.9% | 36.6% | 22.8% | 15.9% | -8.9% | 0.0% | 0.0x | $38.7B | VS | |
$SU SUNCOR ENERGY INC | 74 | 87 | 90 | 53 | - | - | 13.1% | 6.5% | 58.3% | 18.4% | 11.0% | -3.6% | 4.9% | 29.0x | $46.0B | VS | |
$TRX TRX GOLD Corp | 72 | 83 | 77 | 96 | - | - | 10.7% | 6.1% | 41.5% | 27.8% | 11.4% | 40.0% | 0.0% | 2.0x | $104M | VS | |
$ORLA Orla Mining Ltd. | 72 | 94 | 83 | 78 | - | - | 19.6% | 15.7% | 74.8% | 47.5% | 26.2% | 47.2% | 0.0% | 0.0x | $1.7B | VS | |
$KGC KINROSS GOLD CORP | 71 | 83 | 89 | 79 | - | - | 15.1% | 9.3% | 37.8% | 31.6% | 20.0% | 21.3% | 1.3% | 21.0x | $11.4B | VS | |
$AEM AGNICO EAGLE MINES LTD | 71 | 80 | 80 | 71 | - | - | 9.4% | 6.5% | 60.5% | 36.0% | 22.9% | 25.0% | 2.0% | 6.0x | $38.9B | VS | |
$RIO RIO TINTO PLC | 70 | 76 | 84 | 64 | - | - | 20.3% | 11.2% | 23.0% | 20.1% | 23.1% | -1.3% | 11.2% | 26.0x | $93.8B | VS | |
$IAG IAMGOLD CORP | 70 | 71 | 82 | 89 | - | - | 29.9% | 17.1% | 33.7% | 57.8% | 51.9% | 65.4% | 0.0% | 34.0x | $2.5B | VS | |
$NGD New Gold Inc. /FI | 70 | 76 | 67 | 92 | - | - | 11.1% | 4.8% | 52.8% | 19.7% | 11.1% | 17.5% | 0.0% | 38.0x | $1.7B | VS | |
$PDS PRECISION DRILLING Corp | 70 | 77 | 90 | 65 | - | - | 6.6% | 3.6% | 34.4% | 11.0% | 5.9% | -10.0% | 0.0% | 52.0x | $876M | VS | |
$PTEN PATTERSON UTI ENERGY INC | 48 | 43 | 55 | 42 | - | 2.5x | -32.6% | -19.2% | 25.4% | -19.1% | -19.8% | -12.8% | 6.2% | 38.0x | $2.0B | ||
| SECTOR BENCH | - | - | - | - | - | 13.7x | 5.2x | 4.0% | 3.9% | 43.2% | 12.2% | 6.2% | 2.6% | 0.0% | 0.3x | - | REF |
PATTERSON UTI ENERGY INC (PTEN) receives a "Reduce" rating with a composite score of 48.4/100. It ranks #2274 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
William A. Hendricks
Chief Executive Officer
Labor Force
6,500
43
33
40
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for PTEN
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Mining sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for PTEN.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 43 | 41 | +2NEUTRAL |
| MOMENTUM | 42 | 42 | 0NEUTRAL |
| VALUATION | 55 | 61 | -6DRAG |
| INVESTMENT | 33 | 37 | -4NEUTRAL |
| STABILITY | 40 | 36 | +4NEUTRAL |
| SHORT INT | 41 | 36 | +5NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -2.1% vs WACC 7.4% (spread -9.5%)
GM 25% vs sector 43%, OM -19% vs sector 12%
Capital turnover 1.13x
Rev growth -13%, 10yr history
Interest coverage -1.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
PATTERSON UTI ENERGY INC receives a Reduce rating from our analysis, with a composite score of 48.4/100 and 2 out of 5 stars, ranking #2274 out of 7,333 stocks. PTEN's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
PTEN's quality score of 43/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -32.6% (sector avg: 4.0%), gross margins of 25.4% (sector avg: 43.2%), net margins of -19.8% (sector avg: 6.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
PTEN's value score of 55/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include an EV/EBITDA of 2.51x, a P/B ratio of 0.98x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
PATTERSON UTI ENERGY INC's investment score of 33/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -12.8% vs. a sector average of 2.6% and a return on assets of -19.2% (sector: 3.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
PTEN is currently showing below-average momentum at 42/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -12.8% year-over-year, while a beta of 1.92 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
PTEN's stability score of 40/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.92 and a debt-to-equity ratio of 38.00x (sector avg: 0.3x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 41/100 for PTEN suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.92), elevated leverage (D/E: 38.00x), small-cap liquidity risk. With a $2.0B market cap (small-cap), PATTERSON UTI ENERGY INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
PATTERSON UTI ENERGY INC offers an attractive dividend yield of 6.2%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
PATTERSON UTI ENERGY INC is a small-cap company in the Mining sector, ranked #0 of 50 in its sector (100th percentile) and #2274 of 7,333 overall (69th percentile). Key comparisons include ROE of -32.6% trailing the 4.0% sector median and operating margins of -19.1% below the 12.2% sector average. This top-quartile standing reflects exceptional competitive strength relative to Mining peers.
While PTEN currently exhibits a REDUCE profile, superior opportunities exist within the MINING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Mining Alpha →Quant Factor Profile
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Improvement in Investment (33) would have the largest impact on the composite score.
EV/EBITDA 52% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 924% BELOW SECTOR MEDIAN
Gross Margin 41% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate PATTERSON UTI ENERGY INC (PTEN) as a Reduce with a composite score of 48.4/100 at a current price of $8.34. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in value (55th percentile) and quality (43th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (33th percentile) and stability (40th percentile) tempers our overall conviction. We assign a No Moat rating (25/100), High uncertainty, and Poor capital allocation.
Key items to watch: the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
PATTERSON UTI ENERGY INC holds a top-quartile position (#0 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.4/100 places it at rank #2274 in our full 7,333-stock universe. At $2.0B in market capitalization, PATTERSON UTI ENERGY INC is a small-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -13% combined with momentum at the 42th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 25% (-17.7pp vs sector) narrow to operating margins of -19% (-31.4pp vs sector) and net margins of -19.8%, yielding a gross-to-net conversion rate of -78%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $8.34, PATTERSON UTI ENERGY INC is trading near fair value based on current fundamentals. Our value factor score of 55/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at EV/EBITDA of 2.5x (discounted to peers), P/B of 1.0x, P/S of 0.6x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A 6.18% dividend yield provides income while you wait, and dividends historically account for a significant portion of total equity returns.
The Reduce rating (composite 48.4/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -13% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Thin net margins of -19.8% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
High beta of 1.92 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
We assign a High uncertainty rating to PATTERSON UTI ENERGY INC. Key risk factors include elevated market sensitivity (beta of 1.92), current negative profitability (net margin -19.8%). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.92); current negative profitability (net margin -19.8%). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 40th percentile and quality factor at the 43th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: a 6.18% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate PATTERSON UTI ENERGY INC's capital allocation as Poor. Key concerns include low returns on equity (-32.6%), negative profitability, weak asset returns (ROA -19.2%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — PATTERSON UTI ENERGY INC significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, PATTERSON UTI ENERGY INC receives a Reduce rating with a composite score of 48.4/100 (rank #2274 of 7,333). Our quantitative framework assigns a No Moat (25/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 43/100.
Our analysis does not support a constructive view on PATTERSON UTI ENERGY INC at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign PATTERSON UTI ENERGY INC a meaningful economic moat, scoring 25/100 on our composite assessment. The ROIC-WACC spread of -9.5% is the primary signal of economic value creation. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, financial resilience, reached only 9.8/20.
The strongest moat sources are financial resilience (9.8/20) and margin superiority (6.6/20). Interest coverage -1.6x. GM 25% vs sector 43%, OM -19% vs sector 12%. These pillars form the core of PATTERSON UTI ENERGY INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (1.6/20) and reinvestment efficiency (2.5/20). ROIC -2.1% vs WACC 7.4% (spread -9.5%). Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect PATTERSON UTI ENERGY INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include declining revenues (-13%) that pressure the earnings outlook. The margin cascade from 25% gross to -19% operating to -19.8% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 43th percentile.
The margin profile shows gross margins of 25%, operating margins of -19%, net margins of -19.8%. Return metrics include ROE of -32.6% and ROA of -19.2%. Relative to the Mining sector, gross margins are 17.7 percentage points below the sector median of 43%, and ROE of -32.6% compares to a sector median of 4.0%.
The balance sheet reflects moderate leverage with D/E of 38%, a dividend yield of 6.18%, revenue growth of -13%. The sector median D/E is 0%, putting PATTERSON UTI ENERGY INC at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Patterson-UTI Energy reported lower Q2 2024 earnings compared to the prior year due to weaker performance in its Drilling Services segment. The company's Completion Services segment saw strong revenue growth, but missed expectations. Patterson-UTI Energy returned $164 million to shareholders in Q2 and has $819 million remaining in its share repurchase authorization.
Patterson-UTI (PTEN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Patterson-UTI Energy, NasdaqGS:PTEN, reported strong Q4 2025 results, highlighting its strongest adjusted free cash flow quarter since its 2023 transformation. The company raised its quarterly dividend by 25%, reflecting a higher level of capital being returned to shareholders. Recent mergers have added to Patterson-UTI Energy’s operational capabilities, which now contribute directly to its post-transformation performance. Patterson-UTI Energy enters this update with shares at $8.10 and a...
The share price of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) surged by 14.62% between February 2 and February 9, 2026, putting it among the Energy Stocks that Gained the Most This Week. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United […]