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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of ProPetro Holding Corp. (NYSE:PUMP), it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on ProPetro Holding here.
Outstanding track record with excellent balance sheet
Over the past few years, PUMP has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which is an optimistic signal for the future. PUMP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. PUMP seems to have put its debt to good use, generating operating cash levels of 2.3x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For ProPetro Holding, I've put together three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for PUMP’s future growth? Take a look at our free research report of analyst consensus for PUMP’s outlook.
- Valuation: What is PUMP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PUMP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PUMP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.