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. The company's stock price has risen by 34.87%, from $7.82 to $10.55, marking a notable gain for investors. This recent performance has pushed the company's market cap to $1.19 billion, reflecting a strong market sentiment towards the company. Over the past week, the stock has continued its upward trajectory, gaining an additional 4.76%.
Understanding ProPetro's Valuation
According to the GF Value, defined by GuruFocus.com, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, ProPetro's stock is currently modestly undervalued with a GF Value of $12.43. This suggests that the stock still has room for growth. However, three months ago, the stock's GF Value was $12.26, indicating that it was a possible value trap. This shift in valuation underscores the company's improved performance and potential for future growth.
ProPetro's Profitability Analysis
ProPetro's profitability rank stands at 5/10, indicating average profitability. The company's operating margin of 13.93% is better than 59.65% of companies in the industry. Similarly, its ROE of 9.91%, ROA of 7.14%, and ROIC of 16.85% are all better than the majority of companies in the industry. Over the past 10 years, the company has had 4 profitable years, better than 41.34% of companies in the industry.
Growth Prospects of ProPetro
Despite its recent stock price surge, 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. Furthermore, its 3-year EPS without NRI growth rate is -76.60%. These figures suggest that the company's growth has been sluggish in recent years, but the recent surge in stock price could signal a turnaround.
Top Holders of ProPetro Stock
ProPetro's stock is held by several prominent investors. Ken Fisher (Trades, Portfolio) holds the largest stake with 0.97% of the shares, followed by HOTCHKIS & WILEY with 0.79% and First Eagle Investment (Trades, Portfolio) with 0.7%. These holdings reflect the confidence these investors have in the company's future prospects.
ProPetro's Position in the Oil & Gas Industry
ProPetro operates in the competitive Oil & Gas industry. Its main competitors include US Silica Holdings Inc (SLCA, Financial) with a market cap of $1.12 billion, Oceaneering International Inc (OII, Financial) with a market cap of $2.55 billion, and Core Laboratories Inc (CLB, Financial) with a market cap of $1.15 billion. Despite the competition, ProPetro's recent performance and growth potential make it a compelling choice for investors.
Conclusion
In conclusion, ProPetro's recent stock price surge reflects its improved performance and potential for future growth. The company's profitability and growth metrics, along with its position in the industry, make it a potential investment opportunity for value investors. However, investors should continue to monitor the company's performance and the broader market trends to make informed investment decisions.
