ProPetro Holding Corp (PUMP, Financial), a Texas-based oilfield services company, has seen a significant surge in its stock price over the past three months. With a current market cap of $1.12 billion and a stock price of $9.98, the company has experienced a 2.56% gain over the past week and a remarkable 42.65% gain over the past three months. This article aims to provide an in-depth analysis of the company's recent performance, profitability, growth, and its position in the market.
Stock Performance and Valuation
ProPetro's stock performance has been impressive, with a significant gain of 42.65% over the past three months. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently $12.58, suggesting that the stock is modestly undervalued. This is a positive shift from the past GF Value of $12.26, which indicated a possible value trap. Investors should, however, exercise caution as the stock's valuation can fluctuate.
Company Overview
ProPetro Holding Corp operates in the oil and gas industry, providing hydraulic fracturing, wireline, and other complementary services to oil and gas companies. The company's operations are primarily focused on the Permian Basin, a region rich in oil and natural gas resources. With a diverse range of services, ProPetro has positioned itself as a key player in the industry.
Profitability Analysis
ProPetro's profitability rank stands at 5/10, indicating moderate profitability. The company's operating margin of 13.93% is better than 59.67% of companies in the industry. Furthermore, the company's ROE, ROA, and ROIC, which stand at 9.91%, 7.14%, and 16.85% respectively, are commendable. Over the past 10 years, the company has had 4 profitable years, which is better than 41.56% of companies in the industry.
Growth Prospects
Despite its impressive profitability, ProPetro's growth rank is relatively low at 2/10. The company's 3-year and 5-year revenue growth rates per share stand at -15.40% and -9.70% respectively. Additionally, the company's 3-year EPS without NRI growth rate is -76.60%. These figures suggest that the company has faced challenges in maintaining consistent growth.
Major Stock Holders
ProPetro's stock is held by several notable investors. Ken Fisher (Trades, Portfolio) holds 0.97% of the shares, HOTCHKIS & WILEY holds 0.79%, and First Eagle Investment (Trades, Portfolio) holds 0.7% of the shares. These investors' confidence in the company could be a positive sign for potential investors.
Competitive Landscape
ProPetro operates in a competitive industry with major players such as US Silica Holdings Inc (SLCA, Financial) with a market cap of $998.660 million, Oceaneering International Inc (OII, Financial) with a market cap of $2.43 billion, and Core Laboratories Inc (CLB, Financial) with a market cap of $1.18 billion. Despite the competition, ProPetro's recent performance suggests that it is holding its own in the market.
Conclusion
In conclusion, ProPetro Holding Corp has demonstrated impressive stock performance over the past three months. The company's profitability is moderate, and while its growth has been inconsistent, its recent stock performance suggests potential for future growth. As always, investors should conduct thorough research and consider all factors before making investment decisions.
