Unit Corp (UNTC) AI Stock Analysis

• Market Cap: $257.06M
• Dividend Yield: 19.09%
• Average Volume (3M): 10.39K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.07
• Revenue Growth: -22.19%
• EPS Growth: -62.80%
• Country: US
• Employees: 516
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.80
• Shares Outstanding: 9,815,349
• 10 Day Avg. Volume: 6,430
• 30 Day Avg. Volume: 10,387
• PEG Ratio: 1.53
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.54
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 0.50
• 1Y Price Target: $30.00
• Price Target Upside: 14.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $29.00 ▲(10.73%Upside)

The overall score is primarily driven by strong valuation and financial performance, offset by mixed technical analysis. The company's low P/E ratio and high dividend yield highlight its attractiveness from a valuation perspective. Financially, the company is stable but must address revenue growth challenges. Technical indicators suggest a lack of strong momentum.

Unit Corp Business Overview & Revenue Model

Company Description

Unit Corporation, together with its subsidiaries, engages in the exploration, acquisition, development, and production of oil and natural gas properties in the United States. It operates through three segments: Oil and Natural Gas, Contract Drilling, and Mid-Stream. The Oil and Natural Gas segment explores for, acquires, develops, and produces oil and natural gas properties. Its producing oil and natural gas properties, unproved properties, and related assets are primarily located in Oklahoma and Texas, as well as in Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Utah, and Wyoming. The Contract Drilling segment is involved in the drilling of onshore oil and natural gas wells for a range of other oil and natural gas companies primarily in Oklahoma, Texas, New Mexico, Wyoming, and North Dakota. It has 21 drilling rigs in its fleet. The Mid-Stream segment buys, sells, gathers, processes, and treats natural gas for third parties. This segment operates three natural gas treatment plants, 12 processing plants, 18 gathering systems, and approximately 3,822 miles of pipeline in Oklahoma, Texas, Kansas, Pennsylvania, and West Virginia. Unit Corporation was incorporated in 1963 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Unit Corp generates revenue through three main segments: oil and natural gas exploration and production, contract drilling, and midstream services. The exploration and production segment involves the extraction and sale of oil and natural gas, which constitutes the primary source of revenue. The contract drilling segment offers onshore drilling services to other energy companies, providing a steady stream of income through service contracts. The midstream services segment involves the gathering, processing, and transportation of oil and natural gas, which supports the company's production activities and generates additional revenue through service fees. Strategic partnerships and joint ventures in resource-rich areas further enhance the company's revenue potential.

Unit Corp Financial Statement Overview

Summary

Unit Corp displays a solid financial standing with strong profitability and operational efficiency. The balance sheet highlights low leverage, enhancing financial stability. While cash flow generation is strong, maintaining revenue growth is a challenge. The company is well-positioned but must focus on reversing the declining revenue trend.

Income Statement

Unit Corp has shown strong profitability with a gross profit margin of 32.94% and a net profit margin of 20.98% in the TTM. However, revenue declined from the previous year, indicating challenges in maintaining growth. The EBIT margin at 23.96% and EBITDA margin at 33.91% reflect solid operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.02 and a high equity ratio of 81.29%, indicating strong financial stability. Return on Equity is healthy at 20.70%, showing effective use of equity to generate profits.

Cash Flow

Unit Corp has a strong operating cash flow to net income ratio of 1.61, indicating good cash generation relative to reported earnings. However, free cash flow decreased slightly from the previous year, and the free cash flow to net income ratio is 0.97, showing some stability in cash flow management.

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

Unit Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNTC, the sentiment is Negative. The current price of 26.19 is below the 20-day moving average (MA) of 26.59, above the 50-day MA of 25.87, and above the 200-day MA of 25.85, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNTC.

Unit Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTC	74 Outperform	$257.06M	5.24	19.81%	19.09%	-22.19%	-62.80%
TGS	72 Outperform	$3.85B	9.76	20.40%	3.60%	37.43%	395.49%
YPF	72 Outperform	$12.15B	7.17	15.54%	―	8.58%	―
NFG	70 Outperform	$7.98B	200.52	1.30%	2.42%	7.14%	-90.91%
SLNG	65 Neutral	$96.70M	62.86	2.37%	―	7.30%	208.99%
Sector *	52 Neutral	C$2.94B	-1.05	-3.46%	5.87%	3.01%	-47.13%
CGBS	―	$18.16M	―		―	―	―