Is PTEN a high-quality business?

AlphaMadera's AlphaQuality grade scores Patterson-UTI Energy, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how PTEN compares to a Buffett-style quality bar.

What is Patterson-UTI Energy, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to PTEN based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes PTEN a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

PTEN - Patterson-UTI Energy, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $11.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C- 48.7 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D- 31.9

5yr Avg ROIC -3.6% 3/100
Operating Margin Trend +7.43 pp/yr 100/100

Capital Efficiency

Weight: 10%

F 0.0

5yr Avg ROE -8.2% 0/100
5yr Share-Count CAGR 18.4% 0/100

Growth Quality

Weight: 5%

A+ 96.0

5yr Revenue CAGR 37.3% 100/100
5yr EPS CAGR 25.7% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

B 71.4

5yr FCF Margin 5.2% 51/100
5yr FCF/NI Conversion 1.21x 96/100

Balance Sheet

Weight: 25%

C- 48.0

Net Debt / EBITDA 0.95x 86/100
Interest Coverage (EBIT/Int) -0.46x 0/100
Altman Z-Score 1.90 38/100

Stability

Weight: 20%

C- 46.3

EPS Volatility (σ/μ) 0.83 7/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 1 added; 3 trimmed.

Holders: 4
Avg Δ position: +260.6%
New buys: 0
Full exits: 0

Cooperman increased +1204%
Wood decreased -84%
Dalio decreased -68%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.