One-glance verdict
Within fair range
$10.57 our estimate vs market $10.14
Wall Street consensus: $16.42 (55.3% higher than our fair-value estimate)
4% below our estimate
Fundamentals snapshot
ProPetro Holding Corp.
PUMP · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$10.14
52-week range
$4.64 - $18.50
Market cap
$1.25B
Balance sheet
Stretched
2.25x Stretched
Net debt $73.93M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 6/10 years.
- Risk Insider ownership is only 2.0% (peer median: 16.9%).
- Risk Operating margin compressed from 12.3% to -1.5% over 3 years.
- Risk Return on equity was -1.5% last year — the company lost money on shareholders' equity.
What this company does
ProPetro Holding Corp.
ProPetro helps oil and gas companies get fuel out of the ground, specializing in a service called hydraulic fracturing (using high-pressure liquid to break underground rock to release oil or gas). The company makes its money selling these services to energy producers located in the rich oil fields of Texas and New Mexico. This means ProPetro's business tends to do well when these energy companies are actively spending money to drill and produce more oil.
How the company got here
ProPetro was founded in 2007, right as a new boom in oil and gas was taking shape in West Texas. Instead of spreading out, the company focused all its energy on one major oil-producing area, the Permian Basin. This allowed them to get really good at what they do and build strong relationships with the big oil companies drilling there. A key moment was in 2017 when it became a publicly traded company, and in 2019, it significantly grew by acquiring the pumping assets of a major customer. More recently, the company has been updating its equipment to be more efficient and environmentally friendly.
What it actually does
Think of ProPetro as a specialized construction crew for oil and gas wells. After a company drills a hole to get to oil or gas, ProPetro comes in to get it ready for production. Their main job is a process called hydraulic fracturing, which involves pumping a high-pressure mixture of water, sand, and chemicals to crack open the rock deep underground, letting the oil and gas flow out. They also offer other essential setup services, like running wires and cementing, to complete the well. Recently, they've also started a new business providing mobile power generation, like giant generators, to their customers and even to other industries like data centers.
Hydraulic Fracturing
This is ProPetro's main business and where most of its money comes from. Imagine an oil and gas company has drilled a well; ProPetro brings in massive, powerful pumps and crews to perform hydraulic fracturing, often called 'fracking'. This service is essential for getting oil and gas out of shale rock formations. Oil and gas producers pay ProPetro for each well they 'complete' or prepare for production, making this the core of their operations.
Completion Services
This segment includes a bundle of supporting services needed to finish a well. It includes wireline services, which involve lowering tools and sensors down the well on a cable to gather data and prepare the well for fracturing. It also includes cementing, which is pumping cement into the well to secure the structure. While smaller than the fracturing business, these services are crucial for providing a complete package to customers and represent a notable portion of the company's work.
PROPWR℠
This is ProPetro's newest and fastest-growing business line. It provides mobile power generation using natural gas-powered equipment. Think of it as a power plant on wheels that can be taken to remote locations where the main power grid isn't available or reliable enough. Initially for oilfield operations, this division now also provides electricity for other industries, like large data centers that need huge amounts of consistent power. While still a small part of total revenue (the money a company makes from sales), management is investing heavily to grow it.
What management is betting on now
Management is making a big bet on two things: cleaner technology and power generation. They are spending a lot on new equipment that is more efficient and has lower emissions, including electric-powered fracturing fleets, because their customers are demanding it. Their other major focus is rapidly growing the PROPWR℠ business, which provides mobile power. The strategy is to use the steady cash from their main fracturing business to fund this expansion into serving not just oilfields but also other power-hungry industries like data centers.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-5.97M
FY2024 Q4
$10.02M
FY2025 Q1
$13.78M
FY2025 Q2
$17.08M
FY2025 Q3
$-2.38M
FY2025 Q4
$16.81M
FY2026 Q1
$-40.63M
FY2026 Q2
$4.69M
Revenue
$305.81M
Net income
$-8.11M
Diluted EPS
-0.07
Operating cash flow
$66.05M
Free cash flow
$4.69M
Fetching…
Sources
Revenue
$270.69M
Net income
$-3.64M
Diluted EPS
-0.03
Operating cash flow
$2.73M
Free cash flow
$-40.63M
Fetching…
Sources
Revenue
$289.68M
Net income
$742.00K
Diluted EPS
0.01
Operating cash flow
$81.04M
Free cash flow
$16.81M
Fetching…
Sources
Revenue
$293.92M
Net income
$-2.37M
Diluted EPS
-0.02
Operating cash flow
$41.66M
Free cash flow
$-2.38M
Fetching…
Sources
Revenue
$326.15M
Net income
$-7.16M
Diluted EPS
-0.07
Operating cash flow
$54.21M
Free cash flow
$17.08M
Fetching…
Sources
Revenue
$359.42M
Net income
$9.60M
Diluted EPS
0.09
Operating cash flow
$54.69M
Free cash flow
$13.78M
Fetching…
Sources
Revenue
$320.55M
Net income
$-17.06M
Diluted EPS
-0.14
Operating cash flow
$37.86M
Free cash flow
$10.02M
Fetching…
Sources
Revenue
$360.87M
Net income
$-137.07M
Diluted EPS
-1.32
Operating cash flow
$34.67M
Free cash flow
$-5.97M
Fetching…
Sources
Is it cheap or expensive?
Fair value $10.57 vs current price $10.14
Wall Street consensus is the average analyst price target: $16.42 (55.3% higher than our fair-value estimate).
Our most-likely fair value is $10.57 a share — about 4.2% away from today's price of $10.14, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $73.9M. Interest coverage 2.2x.
Net debt
$73.93M
Interest coverage
2.25x
ProPetro Holding Corp.'s profit covers its interest bill about 2.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
PUMP
BASELINE
ProPetro Holding Corp.
Total debt $857.89M Interest coverage 2.25x This is the baseline the peer rows are being compared against.
Total debt $51.88M Interest coverage 18.77x +734% vs PUMP Carries about 8.3x more debt cushion than PUMP.
Total debt $1.22B Interest coverage -0.96x -100% vs PUMP This peer has almost no interest-payment cushion compared with PUMP.
Total debt $1.61B Interest coverage 2.24x -0% vs PUMP Has roughly the same debt cushion as PUMP.
Total debt $1.29B Interest coverage -0.56x -100% vs PUMP This peer has almost no interest-payment cushion compared with PUMP.
Total debt $49.10M Interest coverage 12.00x +434% vs PUMP Carries about 5.3x more debt cushion than PUMP.
What you should know
The case for and against PUMP
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 6/10 years.
Risks
-
Insider ownership is only 2.0% (peer median: 16.9%).
-
Operating margin compressed from 12.3% to -1.5% over 3 years.
-
Return on equity was -1.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
25.04x
P/B
1.30x
P/S
1.07x
EV/EBITDA
8.87x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
22.7%
Operating margin
-1.5%
Net margin
-1.2%
ROE
-1.5%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.90x
Current ratio
4.09x
Quick ratio
3.94x
Total debt
$857.89M
Total cash
$783.96M
Growth
How the business has been compounding
Revenue TTM
$1.16B
Revenue 5Y CAGR
9.8%
EPS TTM
-0.11
EPS 5Y CAGR
-20.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$191.48M
Free CF TTM
$45.29M
FCF margin
3.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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