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Rating Change Detail - PATTERSON-UTI ENERGY, INC. (PTEN) - 3/10/2010
The stock was upgraded from No Interest to Some Interest on 3/10/2010 by the Value Investor Strategy based on the principles of Benjamin Graham. The score according to this strategy rose from 71% to 86%. A full detailed analysis of PTEN using this strategy is included below. For a full detailed analysis of PTEN using 12 proven strategies of Wall Street Legends, take a free trial to Validea.com

Detailed Analysis of PATTERSON-UTI ENERGY, INC. (PTEN)

Strategy: Value Investor - Based on: Benjamin Graham

SECTOR: [PASS]

PTEN is neither a technology nor financial Company, and therefore this methodology is applicable.

SALES: [PASS]

The investor must select companies of "adequate size". This includes companies with annual sales greater than $340 million. PTEN's sales of $782.0 million, based on trailing 12 month sales, pass this test.

CURRENT RATIO: [PASS]

The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. PTEN's current ratio of 2.37 passes the test.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [PASS]

For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that meet this criterion display one of the attributes of a financially secure organization. The long-term debt for PTEN is $0.0 million, while the net current assets are $264.0 million. PTEN passes this test.

LONG-TERM EPS GROWTH: [FAIL]

Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. EPS for PTEN were negative within the last 5 years and therefore the company fails this criterion.

P/E RATIO: [PASS]

The Price/Earnings (P/E) ratio, based on the greater of the current PE or the PE using average earnings over the last 3 fiscal years, must be "moderate", which this methodology states is not greater than 15. Stocks with moderate P/Es are more defensive by nature. PTEN's P/E of 9.40 (using the 3 year PE) passes this test.

PRICE/BOOK RATIO: [PASS]

The Price/Book ratio must also be reasonable. That is, the Price/Book multiplied by P/E cannot be greater than 22. PTEN's Price/Book ratio is 1.13, while the P/E is 9.40. PTEN passes the Price/Book test.

For a full detailed analysis of PTEN using 12 proven strategies of Wall Street Legends,
take a free trial to Validea.com

Rating Change Detail - PATTERSON-UTI ENERGY, INC. (PTEN) - 3/10/2010

Detailed Analysis of PATTERSON-UTI ENERGY, INC. (PTEN)

Strategy: Value Investor - Based on: Benjamin Graham