ProPetro Holding Corp (PUMP, Financial), a key player in the Oil & Gas sector, has witnessed a notable uptick in its stock price, registering a 0.67% gain over the past week and an impressive 24.01% increase over the last three months. Currently, the stock is trading at $9.99 with a market capitalization of $1.07 billion. According to GuruFocus, the GF Value of the stock stands at $12.65, suggesting that it is modestly undervalued. This valuation has remained consistent from a past GF Value of $11.41 three months ago, indicating a stable yet positive outlook for the stock.
Overview of ProPetro Holding Corp
ProPetro Holding Corp is a Texas-based oilfield services company specializing in hydraulic fracturing, wireline, and other complementary services. The company primarily operates in the Permian Basin, focusing on supporting oil and gas companies in the exploration and production of North American oil and natural gas resources. Its main revenue-generating segment is hydraulic fracturing, complemented by wireline, cementing, and coiled tubing services. 
Assessing ProPetro's Profitability
ProPetro's financial health appears robust when examining its profitability metrics. The company holds a Profitability Rank of 5/10, reflecting average industry profitability. It boasts an Operating Margin of 10.95%, which is higher than 57.68% of its peers. Additionally, its Return on Equity (ROE) and Return on Assets (ROA) stand at 7.66% and 5.25% respectively, both metrics surpassing more than half of its competitors. The Return on Invested Capital (ROIC) is particularly strong at 10.97%, outperforming 77.5% of peers. These figures are supported by a history of profitability in 5 out of the last 10 years. 
Growth Prospects of ProPetro
ProPetro is positioned well for future growth, as evidenced by its Growth Rank of 7/10. The company has demonstrated a significant 3-Year Revenue Growth Rate per Share of 22.50%, outperforming 58.67% of its peers. Although the 5-Year Revenue Growth Rate per Share shows a decline of -8.10%, it still ranks better than 17.31% of peers. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 8.70%, which is higher than 75.08% of competitors. This suggests a strong potential for sustained revenue expansion. 
Significant Shareholders
ProPetro's stock is held by notable investors, which underscores its market trust. Ken Fisher (Trades, Portfolio) is the top holder with 1,530,243 shares, representing 1.43% of shares. Following him are HOTCHKIS & WILEY and Chuck Royce (Trades, Portfolio), holding 1,100,690 shares and 538,595 shares respectively. These investments reflect a strong confidence in the company's market strategy and future outlook.
Competitive Landscape
ProPetro operates in a competitive environment with several key players. Dnow Inc (DNOW, Financial) with a market cap of $1.52 billion, Atlas Energy Solutions Inc (AESI, Financial) with a market cap of $2.72 billion, and Kodiak Gas Services Inc (KGS, Financial) with a market cap of $2.41 billion are among its primary competitors. These companies are closely matched in terms of market capitalization, which highlights the competitive nature of the Oil & Gas sector.
Conclusion
In conclusion, ProPetro Holding Corp's recent stock performance and financial metrics paint a picture of a company that is not only growing but also managing its resources efficiently. The stock's current valuation suggests it is modestly undervalued, providing an attractive entry point for investors. With solid profitability, promising growth prospects, and a competitive stance in the market, ProPetro is well-positioned to maintain its upward trajectory in the foreseeable future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
