Patterson-UTI Energy Inc. Common Stock (PTEN)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first at the business. Patterson-UTI sells drilling and completion services to oil and gas producers, a cyclical, capital-intensive trade with little pricing power in downturns. The filed record shows why: in FY2023 it earned $246.3M on $4.1B of revenue; by FY2024 it lost $968.0M on $5.3B; and in FY2025 it lost $93.6M on $4.8B. Latest quarters show losses narrowing—Q2 2026 net loss was $19.6M, or EPS -$0.05, versus Q2 2025's $49.1M loss and EPS -$0.13—but the company is not yet earning its cost of capital. FairStock's calculated ROE is -2.77% and ROCE -0.91%, which confirms poor current profitability. The balance sheet is not fragile: debt-to-equity 0.41, but Altman Z 1.16 (a FairStock calculation) is weak, and Piotroski F-score 5/9 is mediocre. FCF is positive: $177.7M trailing, a 4.0% FCF yield at the 2026-10-13 close. At the 2026-10-13 close, FairStock's calculations show P/B 1.42, EV/EBITDA 6.28, and negative P/E -48.00. A 3.40% dividend yield with beta 0.67 may attract income, but the payout needs cash flow. Lynch's computed category is TURNAROUND—loss in latest year after earlier profits. That is apt: the investment case depends on cycle recovery and capital discipline, not a durable moat. At $11.52, within a 52-week range of $5.24-$13.39, the price seems fair, not distressed-clear. I would want evidence of sustained positive earnings and free cash flow before calling it a bargain.

In plain English: Patterson-UTI provides drilling and completion services to oil and gas producers. The business is weak right now: it lost money in fiscal 2025 and in the latest quarter, though the losses are getting smaller. At $11.52, the price looks fair rather than clearly cheap given the current losses and modest cash profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer