Propetro Holding (PUMP) AI Stock Analysis

• Market Cap: $504.24M
• Dividend Yield: N/A
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -10.91%
• EPS Growth: -580.59%
• Country: US
• Employees: 1,900
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.03
• Shares Outstanding: 103,967,520
• 10 Day Avg. Volume: 5,291,929
• 30 Day Avg. Volume: 2,955,634
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 23.85
• 1Y Price Target: $6.40
• Price Target Upside: 31.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: $5.00 ▲(3.09% Upside)

Propetro Holding's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and inconsistent revenue growth. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The earnings call provided some positive strategic insights but also highlighted significant declines in revenue and profit, contributing to an uncertain outlook.

Positive Factors

Next-Generation Fleet Expansion

The expansion into next-generation fleets positions ProPetro for long-term competitiveness by enhancing operational efficiency and reducing emissions, aligning with industry trends towards sustainability.

PROPWR Initiative

The PROPWR initiative and long-term contracts secure stable revenue streams and demonstrate strategic diversification into power generation, enhancing ProPetro's resilience and growth potential.

Strong Cash and Liquidity

Maintaining strong liquidity provides ProPetro with financial flexibility to invest in growth opportunities and weather market fluctuations, supporting long-term operational stability.

Negative Factors

Decline in Revenue and Profit

The decline in revenue and profit indicates challenges in maintaining growth and profitability, which could impact ProPetro's ability to invest in future initiatives and sustain competitive positioning.

Market Challenges and Fleet Reduction

Reduced fleet activity in the Permian Basin reflects market headwinds, potentially leading to lower utilization rates and revenue, affecting ProPetro's operational efficiency and market share.

Adjusted EBITDA Decline

The significant decline in adjusted EBITDA suggests reduced profitability and operational challenges, which may hinder ProPetro's ability to fund strategic initiatives and maintain financial health.

Propetro Holding Business Overview & Revenue Model

Company Description

ProPetro Holding Corp., an oilfield services company, provides hydraulic fracturing and other related services. The company operates through Pressure Pumping and All Other segments. It offers cementing, acidizing, and coiled tubing services. The company serves oil and gas companies engaged in the exploration and production of North American oil and natural gas resources. As of December 31, 2021, its fleet comprised 12 hydraulic fracturing units with 1,423,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

How the Company Makes Money

Propetro generates revenue primarily through its hydraulic fracturing services, which include pressure pumping for exploration and production companies in the oil and gas sector. The company charges its clients based on the volume of services provided, often structured around contracts that specify rates and terms for each project. Key revenue streams include fees for pressure pumping services, equipment rental, and ancillary services related to well completion and stimulation. Propetro also benefits from partnerships with major oil and gas producers, allowing it to secure long-term contracts and maintain a steady inflow of work, particularly in high-demand areas like the Permian Basin. Additionally, the company's operational efficiency and technological investments can lead to cost savings, further enhancing profit margins.

Propetro Holding Financial Statement Overview

Summary

Propetro Holding faces significant challenges in profitability, with negative EBIT and net income margins. The balance sheet is stable with low leverage, but low return on equity due to negative net income. Cash flow is positive but impacted by profitability issues.

Income Statement

Propetro Holding's income statement reflects significant challenges in profitability and growth. The TTM (Trailing-Twelve-Months) data shows negative EBIT and net income margins, indicating operating losses. Revenue growth has been inconsistent, with a decline from the previous year, and gross profit margin is modest. These factors contribute to a lower score, despite some historical profitability.

Balance Sheet

The balance sheet indicates moderate financial stability with a relatively low debt-to-equity ratio. The equity ratio is strong, suggesting a healthy proportion of assets funded by equity. However, the return on equity is low due to negative net income, which affects the overall score. The company has maintained a solid asset base, which is a positive aspect.

Cash Flow

Cash flow analysis shows a positive operating cash flow, which is a strong point. However, free cash flow growth has been negative, indicating potential issues in generating cash after capital expenditures. The ratios of cash flow to net income are affected by the negative net income, impacting the score. Overall, cash flow management appears stable but challenged by underlying profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.44B	1.63B	1.28B	874.51M	789.23M
Gross Profit	148.92M	167.04M	317.71M	268.77M	78.87M	51.66M
EBITDA	29.55M	50.30M	301.70M	137.10M	65.55M	21.17M
Net Income	-148.19M	-137.86M	85.63M	2.03M	-54.19M	-107.02M
Balance Sheet
Total Assets	1.25B	1.22B	1.48B	1.34B	1.06B	1.05B
Cash, Cash Equivalents and Short-Term Investments	71.42M	58.29M	41.10M	99.14M	111.92M	68.77M
Total Debt	172.17M	175.42M	148.58M	33.16M	466.00K	799.00K
Total Liabilities	419.71M	407.37M	481.92M	381.75M	234.93M	179.97M
Stockholders Equity	826.49M	816.27M	998.39M	954.03M	826.30M	870.77M
Cash Flow
Free Cash Flow	85.54M	112.00M	3.87M	-19.25M	11.19M	38.52M
Operating Cash Flow	232.16M	252.29M	374.74M	300.43M	154.71M	139.12M
Investing Cash Flow	-154.09M	-155.10M	-384.13M	-349.75M	-104.29M	-94.22M
Financing Cash Flow	-61.14M	-80.11M	-46.12M	26.26M	-7.28M	-125.17M

Propetro Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUMP, the sentiment is Neutral. The current price of 4.85 is above the 20-day moving average (MA) of 4.84, below the 50-day MA of 5.16, and below the 200-day MA of 6.83, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PUMP.

Propetro Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NESR	77 Outperform	981.89M	13.44	8.40%	―	0.00%	0.00%
NGS	74 Outperform	339.40M	19.01	6.73%	0.37%	14.77%	34.74%
NCSM	73 Outperform	124.88M	10.30	11.84%	―	19.15%	-71.62%
LBRT	64 Neutral	1.77B	8.41	10.65%	2.92%	-9.32%	-48.26%
OIS	53 Neutral	346.59M	50.93	-1.65%	―	-12.15%	0.00%
PUMP	48 Neutral	$504.24M	―	-16.86%	―	-10.91%	-580.59%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Propetro Holding Corporate Events

ProPetro Holding Appoints New Chief Financial Officer

On July 14, 2025, ProPetro Holding Corp. announced the appointment of Caleb L. Weatherl as Chief Financial Officer, effective immediately. Mr. Weatherl brings extensive experience from his previous roles in the energy and financial sectors, including positions at Garrison Energy and Stronghold Energy II. His appointment is expected to strengthen ProPetro’s operational and financial foundation, aligning with the company’s long-term vision and focus on driving shareholder value.

ProPetro Holding Stockholders Approve Key Governance Decisions

On April 7, 2025, ProPetro Holding Corp.’s Board of Directors approved the Second Amended and Restated 2020 Long Term Incentive Plan, subject to stockholder approval. At the company’s Annual Meeting on May 20, 2025, stockholders elected nine directors, approved executive compensation practices, and ratified RSM US LLP as the independent auditor for 2025. These decisions reflect ProPetro’s commitment to governance and strategic alignment with shareholder interests, potentially strengthening its market position and operational focus.

ProPetro’s PROPWR Secures Decade-Long Power Generation Deal

On May 20, 2025, ProPetro Holding Corp. announced that its subsidiary, PROPWR, secured a ten-year contract to provide 80 megawatts of power generation services. This inaugural agreement marks a significant milestone for PROPWR, aligning with its mission to ‘Rethink The Grid’ by delivering turnkey power to a distributed microgrid installation. The contract underscores PROPWR’s commitment to innovation and growth, providing reliable, lower-cost, and lower-emission power, which enhances stability and earnings potential for ProPetro and the broader oilfield services sector.