Unit Corp (UNTC) AI Stock Analysis

• Market Cap: $303.69M
• Dividend Yield: 16.5%
• Average Volume (3M): 15.09K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.05
• Revenue Growth: -18.35%
• EPS Growth: -39.38%
• Country: US
• Employees: 516
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.69
• Shares Outstanding: 9,815,349
• 10 Day Avg. Volume: 21,756
• 30 Day Avg. Volume: 15,089
• PEG Ratio: -0.08
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 6.04
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 2.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $33.00 ▼(-2.42% Downside)

Unit Corp's overall stock score reflects a strong financial performance and attractive valuation, which are the most significant factors. The company's robust profitability, low leverage, and high dividend yield are key strengths. However, technical analysis indicates potential short-term weakness, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Cash Generation

Improved cash generation enhances financial flexibility, allowing Unit Corp to invest in growth opportunities and manage debt effectively.

Balance Sheet Health

A strong balance sheet with minimal leverage reduces financial risk and supports long-term stability, enabling strategic investments.

Profitability

High profitability margins indicate efficient cost management and operational effectiveness, contributing to sustained financial performance.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests difficulties in expanding market share or product adoption, potentially impacting future earnings.

Earnings Decline

A significant drop in EPS growth reflects potential operational challenges or market pressures, affecting investor confidence and valuation.

Market Dependency

Reliance on volatile oil and gas markets exposes Unit Corp to price risks, affecting revenue stability and financial predictability.

Unit Corp Business Overview & Revenue Model

Company Description

Unit Corp (UNTC) is a diversified energy company based in the United States, primarily engaged in the exploration and production of oil and natural gas. The company operates through three main segments: Oil and Natural Gas, Contract Drilling, and Natural Gas Gathering and Processing. Unit Corp focuses on developing its extensive resource base and enhancing its operational efficiency to deliver reliable energy solutions while adhering to safety and environmental standards.

How the Company Makes Money

Unit Corp generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its exploration and production activities. The company also earns income from its contract drilling services, which involve providing drilling rigs and related services to exploration and production companies. Additional revenue streams include fees from natural gas gathering and processing services, where Unit Corp transports and processes natural gas for third-party producers. Key partnerships with other energy firms and strategic investments in infrastructure further bolster its earnings. Additionally, fluctuations in oil and gas prices significantly impact the company's revenue, making market conditions a crucial factor in its financial performance.

Unit Corp Financial Statement Overview

Summary

Unit Corp demonstrates a strong financial position with robust profitability, low leverage, and positive cash flow growth. While the company faces challenges in revenue growth, its efficient cost management and strong equity base provide stability. The overall financial health is solid, with opportunities to enhance revenue growth and cash flow conversion.

Income Statement

Unit Corp's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 12.78%, reflecting challenges in maintaining sales momentum. However, the company maintains strong profitability with a net profit margin of 25.26% and an EBIT margin of 29.68%, indicating efficient cost management. The gross profit margin of 33.89% is healthy, although it has decreased from previous years. Overall, the company demonstrates solid profitability but faces revenue growth challenges.

Balance Sheet

The balance sheet of Unit Corp is robust, with a low debt-to-equity ratio of 0.0125, indicating minimal leverage and financial risk. The return on equity (ROE) is strong at 24.60%, showcasing effective utilization of shareholder funds. The equity ratio stands at 78.15%, reflecting a stable financial structure with a significant portion of assets financed by equity. Overall, the balance sheet is strong, with low leverage and high returns on equity.

Cash Flow

Unit Corp's cash flow statement shows positive trends, with a 25.67% growth in free cash flow in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 2.74 suggests strong cash conversion from earnings. However, the free cash flow to net income ratio of 0.54 indicates room for improvement in translating earnings into free cash flow. Overall, the cash flow position is solid, with positive growth and strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	206.03M	237.61M	327.29M	545.52M	638.72M	410.49M
Gross Profit	73.89M	77.89M	135.79M	260.26M	198.81M	-51.80M
EBITDA	80.41M	78.12M	223.20M	169.26M	140.60M	-747.98M
Net Income	57.62M	47.24M	248.94M	148.37M	48.22M	-949.15M
Balance Sheet
Total Assets	309.46M	289.24M	322.72M	469.25M	629.48M	649.70M
Cash, Cash Equivalents and Short-Term Investments	62.93M	48.88M	60.78M	213.97M	64.14M	12.14M
Total Debt	4.34M	6.54M	7.83M	10.02M	35.12M	110.92M
Total Liabilities	76.68M	56.72M	68.59M	106.63M	229.81M	224.11M
Stockholders Equity	241.84M	232.52M	254.13M	362.63M	187.40M	179.22M
Cash Flow
Free Cash Flow	55.88M	49.07M	126.15M	129.03M	145.66M	44.55M
Operating Cash Flow	88.59M	75.22M	150.16M	159.42M	175.97M	74.76M
Investing Cash Flow	-33.07M	-11.58M	57.98M	28.90M	36.20M	-22.40M
Financing Cash Flow	-72.67M	-75.53M	-361.33M	-38.48M	-160.75M	-40.22M

Unit Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNTC, the sentiment is Positive. The current price of 33.82 is above the 20-day moving average (MA) of 30.92, above the 50-day MA of 31.37, and above the 200-day MA of 27.23, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 44.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNTC.

Unit Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFG	77 Outperform	$7.45B	13.79	17.45%	2.57%	28.56%	593.72%
EC	74 Outperform	$22.23B	8.24	13.79%	18.88%	-7.45%	-28.80%
UNTC	69 Neutral	$303.69M	5.32	22.34%	16.50%	-18.35%	-39.38%
SLNG	66 Neutral	$84.24M	79.47	1.54%	―	-2.40%	-74.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
YPF	54 Neutral	$13.89B	-28.03	-4.00%	―	-2.76%	56.81%
SKYQ	41 Neutral	$13.24M	-0.78	-192.25%	―	―	―