# Patterson-UTI Energy (PTEN.US)

Canonical: https://gigainvestors.com/s/PTEN

Analysis as of: 2026-10-16T07:31:23.136Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $11.31 per share; close as of 2026-10-15.

Estimated value: low $7.47 per share, central $8.46 per share, high $9.78 per share. Buy at or below the central value $8.46 per share. Valuation as of 2026-10-16T07:31:23.136Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 7

- Operating margin variation: 1.08×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.50×

- FY2017: -0.12×

- FY2018: -0.10×

- FY2019: -0.19×

- FY2020: -0.79×

- FY2021: -0.50×

- FY2022: -0.10×

- FY2023: 0.08×

- FY2024: -0.17×

- FY2025: -0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -10.9%

- ROIC, second-lowest year: -22.6%

- Typical minus recent gross margin: -7.7 pp

- Typical gross margin (annual median): -2.9%

- Recent gross margin (lower of latest and 3-year median): 4.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.6%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -13.2%

- FY2017: -5.5%

- FY2018: -6.4%

- FY2019: -11.2%

- FY2020: -26.2%

- FY2021: -22.6%

- FY2022: -10.6%

- FY2023: 6.1%

- FY2024: -17.4%

- FY2025: -0.6%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $328M

- Net income, five-year total: -$1.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.4 pp

- Working capital / revenue, final three-year average: 12.2%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $28M

- FY2022: $155M

- FY2023: $362M

- FY2024: -$475M

- FY2025: $258M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -6.4% vs -0.6%

- Per-share earnings: -2.03 to -0.24 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.2%

- Ordinary dilution, 5-year annual growth: 15.3%

- Market cap gain: -$1.7B

- Cumulative retained earnings: -$3.4B

- Diluted shares, 10-year annual growth: 10.2%

- Diluted shares, 5-year annual growth: 15.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.78

- Per-share value, starting three-year median: -$2.03

- Per-share value, ending three-year median: -$0.24

- Buybacks concentrated in cheaper years (correlation): -0.18

- Average buyback yield: 4.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $611M

- Cumulative net income, 10 years: -$3.2B

- ROIC, first three-year median: -6.4%

- ROIC, last three-year median: -0.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$2.18

- FY2017: $0.03

- FY2018: -$1.47

- FY2019: -$2.10

- FY2020: -$4.27

- FY2021: -$3.36

- FY2022: $0.70

- FY2023: $0.88

- FY2024: -$2.44

- FY2025: -$0.24

### accounting: pass

- Sloan accruals: -18.9%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 4.1%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.40×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -16.4%

- FY2017: -5.1%

- FY2018: -19.2%

- FY2019: -25.3%

- FY2020: -29.2%

- FY2021: -25.4%

- FY2022: -13.1%

- FY2023: -10.2%

- FY2024: -36.7%

- FY2025: -18.9%

## Holders

- [Thomas Graham Kahn](https://gigainvestors.com/KB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 41% since May 2022 · "Patterson-UTI Energy (PTEN) Is Down 9.7% After Strong Q1 Beats Meet Cautious Demand Outlook" (finance.yahoo.com, Jul 2026) · sales -10.3%

Story as of 2026-10-16T09:59:27.276Z; price observation 2026-10-15.

Price needs cash profits to grow 4.6% a year for ten years

- 2025-10-27: Patterson-UTI (PTEN) Jumps 20% on Earnings Blowout, Higher Oil Prices ([finance.yahoo.com](https://finance.yahoo.com/news/patterson-uti-pten-jumps-20-111308071.html))

- 2026-07-29: Patterson-UTI (NASDAQ:PTEN) Posts Better-Than-Expected Sales In Q2 CY2026 ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/patterson-uti-nasdaq-pten-posts-224010420.html))

- 2026-08-04: PTEN Jumps 20% in a Month as Rig Pricing and Demand Strengthen ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/pten-jumps-20-month-rig-141500726.html))

### Sales · FY2024–2025

sales -10.3%; source https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm; observed 2026-02-10.

- FY2016: $916M 

- FY2017: $2.4B 

- FY2018: $3.3B 

- FY2019: $2.5B 

- FY2020: $1.1B 

- FY2021: $1.4B 

- FY2022: $2.6B 

- FY2023: $4.1B 

- FY2024: $5.4B 

- FY2025: $4.8B 

### Gross margin · FY2025

gross margin 4.8%; source https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm; observed 2026-02-10.

- FY2018: 0.2% 

- FY2022: 12.0% 

- FY2023: 14.6% 

- FY2024: 5.3% 

- FY2025: 4.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas drilling; annual sales are USD 4.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm (filed 2026-02-10); FY2025: revenue 4826624000; grossProfit 229858000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PTEN.US: 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 as MWD Survey Fault Detection, Isolation and Recovery (FDIR) services, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; and HiFi Guidance that utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, equipment, materials, and cementing, as well as involved in the power solutions natural gas fueling, and last mile logistics and storage businesses. The Drilling Products segment engages in the design, manufacture, sale, and rental of matrix and steel-bodied polycrystalline diamond compact drill bits. It also rents oilfield tools; and offers specialized services for land-based oil and natural gas drilling, completion, and workover activities. The company was founded in 1978 and is headquartered in Houston, Texas.

### Why customers stay

Margins ranged from 4.8% to 14.6% during 2023–25; it lost 10.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: grossProfit / revenue = 14.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2024: grossProfit / revenue = 5.3%.

- Source: https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm (filed 2026-02-10); FY2025: grossProfit / revenue = 4.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); 10-year return on capital observations [[2016,-0.13222607882161955],[2017,-0.055090917109160364],[2018,-0.06412947803679812],[2019,-0.11159776880998099],[2020,-0.26215992903778884],[2021,-0.2259848435287439],[2022,-0.1058154458760359],[2023,0.06147200132977683],[2024,-0.17404922609266682],[2025,-0.005546973554279642]]; median -0.10870660734300844. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 69.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2016: growth capex 0; upkeep 119799000; cash acquisitions 155000; owner earnings 230001000. Growth capex plus acquisitions / owner earnings = 0.0006739101134342894.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2017: growth capex 0; upkeep 567087000; cash acquisitions 501954000; owner earnings 222164000. Growth capex plus acquisitions / owner earnings = 2.259384958859221.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2019: growth capex 0; upkeep 347512000; cash acquisitions 13000; owner earnings 230658000. Growth capex plus acquisitions / owner earnings = 0.00005636049909389659.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2021: growth capex 0; upkeep 166320000; cash acquisitions 29358000; owner earnings 28313000. Growth capex plus acquisitions / owner earnings = 1.0369088404619786.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2022: growth capex 436568515; upkeep 228485; cash acquisitions 0; owner earnings 154658000. Growth capex plus acquisitions / owner earnings = 2.822799434882127.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: growth capex 0; upkeep 615690000; cash acquisitions 65185000; owner earnings 362018000. Growth capex plus acquisitions / owner earnings = 0.18006010750846643.

- Source: https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm (filed 2026-02-10); FY2025: growth capex 0; upkeep 589029000; cash acquisitions 0; owner earnings 257600000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Dividend observations: [[2016,23579000],[2017,16315000],[2018,30589000],[2019,32428000],[2020,18862000],[2021,15605000],[2022,43096000],[2023,100034000],[2024,126791000],[2025,122453000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm (filed 2026-02-10); FY2025: cash repurchases 69636000 USD.

### Are managers owners

Insiders own 1.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PTEN.US SharesStats.PercentInsiders = 1.923 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Ten-year compound average after fade. Initial solved rate 0.053568523773319485. Price 11.31; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.1931493095670354 → FY2025 0.67176926186223. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $22.48 per share

- 2016-11: $26.67 per share

- 2016-12: $26.92 per share

- 2017-01: $28.04 per share

- 2017-02: $27.62 per share

- 2017-03: $24.27 per share

- 2017-04: $21.65 per share

- 2017-05: $21.32 per share

- 2017-06: $20.19 per share

- 2017-07: $19.34 per share

- 2017-08: $15.97 per share

- 2017-09: $20.94 per share

- 2017-10: $19.78 per share

- 2017-11: $21.59 per share

- 2017-12: $23.01 per share

- 2018-01: $23.62 per share

- 2018-02: $18.07 per share

- 2018-03: $17.51 per share

- 2018-04: $21.42 per share

- 2018-05: $20.68 per share

- 2018-06: $18.00 per share

- 2018-07: $17.20 per share

- 2018-08: $17.13 per share

- 2018-09: $17.11 per share

- 2018-10: $16.64 per share

- 2018-11: $13.88 per share

- 2018-12: $10.35 per share

- 2019-01: $12.13 per share

- 2019-02: $13.26 per share

- 2019-03: $14.02 per share

- 2019-04: $13.59 per share

- 2019-05: $10.63 per share

- 2019-06: $11.51 per share

- 2019-07: $11.63 per share

- 2019-08: $8.65 per share

- 2019-09: $8.55 per share

- 2019-10: $8.32 per share

- 2019-11: $8.94 per share

- 2019-12: $10.50 per share

- 2020-01: $7.94 per share

- 2020-02: $5.73 per share

- 2020-03: $2.35 per share

- 2020-04: $3.69 per share

- 2020-05: $3.69 per share

- 2020-06: $3.47 per share

- 2020-07: $3.88 per share

- 2020-08: $3.85 per share

- 2020-09: $2.85 per share

- 2020-10: $2.56 per share

- 2020-11: $4.31 per share

- 2020-12: $5.26 per share

- 2021-01: $6.15 per share

- 2021-02: $7.40 per share

- 2021-03: $7.13 per share

- 2021-04: $6.76 per share

- 2021-05: $8.37 per share

- 2021-06: $9.94 per share

- 2021-07: $8.02 per share

- 2021-08: $7.76 per share

- 2021-09: $9.00 per share

- 2021-10: $8.56 per share

- 2021-11: $7.06 per share

- 2021-12: $8.45 per share

- 2022-01: $9.96 per share

- 2022-02: $14.43 per share

- 2022-03: $15.48 per share

- 2022-04: $16.44 per share

- 2022-05: $19.08 per share

- 2022-06: $15.76 per share

- 2022-07: $16.55 per share

- 2022-08: $14.90 per share

- 2022-09: $11.68 per share

- 2022-10: $17.65 per share

- 2022-11: $17.95 per share

- 2022-12: $16.84 per share

- 2023-01: $16.80 per share

- 2023-02: $13.70 per share

- 2023-03: $11.70 per share

- 2023-04: $11.19 per share

- 2023-05: $9.74 per share

- 2023-06: $11.97 per share

- 2023-07: $15.84 per share

- 2023-08: $14.14 per share

- 2023-09: $13.84 per share

- 2023-10: $12.70 per share

- 2023-11: $11.71 per share

- 2023-12: $10.80 per share

- 2024-01: $11.09 per share

- 2024-02: $11.57 per share

- 2024-03: $11.94 per share

- 2024-04: $10.82 per share

- 2024-05: $11.02 per share

- 2024-06: $10.36 per share

- 2024-07: $10.99 per share

- 2024-08: $9.21 per share

- 2024-09: $7.65 per share

- 2024-10: $7.67 per share

- 2024-11: $8.40 per share

- 2024-12: $8.26 per share

- 2025-01: $8.07 per share

- 2025-02: $8.31 per share

- 2025-03: $8.22 per share

- 2025-04: $5.64 per share

- 2025-05: $5.52 per share

- 2025-06: $5.93 per share

- 2025-07: $5.91 per share

- 2025-08: $5.81 per share

- 2025-09: $5.18 per share

- 2025-10: $6.27 per share

- 2025-11: $5.81 per share

- 2025-12: $6.11 per share

- 2026-01: $7.53 per share

- 2026-02: $8.51 per share

- 2026-03: $10.83 per share

- 2026-04: $12.22 per share

- 2026-05: $11.21 per share

- 2026-06: $9.18 per share

- 2026-07: $10.48 per share

- 2026-08: $12.64 per share

- 2026-09: $10.92 per share

- 2026-10: $11.31 per share

## Annual estimated value (USD per share)

- FY2016: low $3.22 per share, central $3.64 per share, high $4.21 per share

- FY2017: low $6.59 per share, central $7.50 per share, high $8.70 per share

- FY2018: low $9.43 per share, central $10.76 per share, high $12.37 per share

- FY2019: low $15.73 per share, central $21.73 per share, high $25.40 per share

- FY2020: low $7.18 per share, central $8.02 per share, high $9.14 per share

- FY2021: low $2.05 per share, central $2.27 per share, high $2.56 per share

- FY2022: low $3.14 per share, central $3.52 per share, high $4.02 per share

- FY2023: low $9.85 per share, central $11.15 per share, high $12.88 per share

- FY2024: low $3.42 per share, central $3.84 per share, high $4.41 per share

- FY2025: low $8.19 per share, central $9.20 per share, high $10.55 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm); period 2025-12-31, filed 2026-02-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.