Unit Corp (UNTC) AI Stock Analysis

• Market Cap: $322.53M
• Dividend Yield: 21.21%
• Average Volume (3M): 12.70K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.17
• 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: 17,158
• 30 Day Avg. Volume: 12,695
• 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: 0.74
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 2.73
• 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: 74 Outperform
• Price Target: $34.00 ▲(0.53% Upside)

Unit Corp's strong financial recovery and robust valuation metrics are the primary drivers of its stock score. The company's impressive revenue growth and low leverage enhance its financial stability. Despite positive technical indicators, the lack of strong momentum tempers the score. The high dividend yield and low P/E ratio further support the stock's attractiveness.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates strong financial stability, providing Unit Corp with flexibility to invest in growth opportunities without being burdened by high debt levels.

Cash Generation Ability

A stable operating cash flow to net income ratio suggests Unit Corp efficiently converts its earnings into cash, supporting ongoing operations and potential reinvestment in business expansion.

Profitability Improvements

Improved net profit margins indicate enhanced operational efficiency and cost management, contributing to stronger long-term profitability and shareholder value.

Negative Factors

Revenue Growth Volatility

Volatility in revenue growth can lead to unpredictable financial performance, posing risks to maintaining consistent profitability and potentially affecting investor confidence.

Free Cash Flow Decline

Declining free cash flow growth may impact Unit Corp's ability to fund new projects or return capital to shareholders, potentially limiting future growth prospects.

Stockholders' Equity Decrease

A decrease in stockholders' equity may indicate potential financial weaknesses, reducing the company's ability to absorb losses and invest in growth initiatives.

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 recovery with impressive revenue growth and profitability improvements. The balance sheet is robust with low leverage, enhancing financial stability. While cash flow metrics are generally positive, recent declines in free cash flow growth warrant attention.

Income Statement

Unit Corp's income statement shows a strong recovery from previous losses, with a significant improvement in net profit margin to 20.98% in the TTM period. The company has achieved a remarkable revenue growth rate of 99.5% in the TTM, indicating a robust turnaround. However, historical volatility in revenue growth and margins suggests potential risks in maintaining this trajectory.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.024 in the TTM, reflecting strong financial stability. Return on equity is healthy at 20.03%, indicating efficient use of equity capital. The equity ratio is also strong, suggesting a well-capitalized position. However, the decrease in stockholders' equity over time could be a concern if not addressed.

Cash Flow

Cash flow analysis reveals a stable operating cash flow to net income ratio of 2.58 in the TTM, indicating good cash generation relative to profits. However, free cash flow growth has been negative recently, which could impact future liquidity. The free cash flow to net income ratio remains healthy, suggesting adequate cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	236.21M	237.61M	327.29M	545.52M	638.72M	410.49M
Gross Profit	80.06M	77.89M	135.79M	260.26M	198.81M	-51.80M
EBITDA	87.02M	78.12M	223.20M	169.26M	140.60M	-747.98M
Net Income	59.67M	47.24M	248.94M	148.37M	48.22M	-949.15M
Balance Sheet
Total Assets	300.75M	289.24M	322.72M	469.25M	629.48M	649.70M
Cash, Cash Equivalents and Short-Term Investments	55.13M	48.88M	60.78M	213.97M	64.14M	12.14M
Total Debt	3.08M	6.54M	7.83M	10.02M	35.12M	110.92M
Total Liabilities	53.66M	56.72M	68.59M	106.63M	229.81M	224.11M
Stockholders Equity	247.08M	232.52M	254.13M	362.63M	187.40M	179.22M
Cash Flow
Free Cash Flow	44.47M	49.07M	126.15M	129.03M	145.66M	44.55M
Operating Cash Flow	81.91M	75.22M	150.16M	159.42M	175.97M	74.76M
Investing Cash Flow	-32.60M	-11.58M	57.98M	28.90M	36.20M	-22.40M
Financing Cash Flow	-74.99M	-75.53M	-361.33M	-38.48M	-160.75M	-40.22M

Unit Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.82
• 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 Neutral. The current price of 33.82 is above the 20-day moving average (MA) of 33.26, above the 50-day MA of 32.31, and above the 200-day MA of 27.73, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 14.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UNTC.

Unit Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFG	78 Outperform	$7.43B	14.47	17.45%	2.57%	28.56%	593.72%
UNTC	74 Outperform	$322.53M	5.65	22.34%	21.21%	-18.35%	-39.38%
EC	74 Outperform	$20.09B	7.37	13.79%	18.59%	-7.45%	-28.80%
SLNG	68 Neutral	$95.11M	92.12	1.54%	―	-2.40%	-74.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
YPF	54 Neutral	$14.49B	―	-4.00%	―	-2.76%	56.81%
SKYQ	40 Underperform	$8.99M	-0.54	-192.25%	―	―	―