Pattern Stock To $21?
Pattern (PTRN) stock has jumped 13% during the past day, and is currently trading at $16.06. Our multi-factor assessment suggests that it may be time to buy more shares of PTRN stock. We have, overall, a positive view of the stock, and a price of $21 may not be out of reach. We believe there are only a couple of things to fear in PTRN stock given its overall Strong operating performance and financial condition. Taken together with its Low valuation, this makes the stock look Attractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Low |
| What you get: | |
| Growth | Strong |
| Profitability | Very Weak |
| Financial Stability | Very Strong |
| Downturn Resilience | N/A |
| Operating Performance | Strong |
| Stock Opinion | Attractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $1.6 Bil in market cap, Pattern provides innovative solutions and services to enhance efficiency and drive growth across various industries.
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[1] Valuation Looks Low
| PTRN | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 0.7 | 3.3 |
| Price-to-Earnings Ratio | 285.7 | 24.3 |
| Price-to-Free Cash Flow Ratio | 23.1 | 21.6 |
This table highlights how PTRN is valued vs broader market.
[2] Growth Is Strong
- Its revenues have grown 0.0% from $NaN to $2.3 Bil in the last 12 months
- Also, its quarterly revenues grew 45.6% to $640 Mil in the most recent quarter from $439 Mil a year ago.
| PTRN | S&P 500 | |
|---|---|---|
| 3-Year Average | 5.6% | |
| Latest Twelve Months* | � | 6.4% |
| Most Recent Quarter (YoY)* | 45.6% | 7.3% |
This table highlights how PTRN is growing vs broader market.
[3] Profitability Appears Very Weak
- PTRN last 12 month operating income was $22 Mil representing operating margin of 1.0%
- With cash flow margin of 4.0%, it generated nearly $92 Mil in operating cash flow over this period
- For the same period, PTRN generated nearly $5.7 Mil in net income, suggesting net margin of about 0.2%
| PTRN | S&P 500 | |
|---|---|---|
| Current Operating Margin | 1.0% | 18.8% |
| Current OCF Margin | 4.0% | 20.5% |
| Current Net Income Margin | 0.2% | 13.1% |
This table highlights how PTRN profitability vs broader market.
[4] Financial Stability Looks Very Strong
- PTRN Debt was $31 Mil at the end of the most recent quarter, while its current Market Cap is $1.6 Bil. This implies Debt-to-Equity Ratio of 1.9%
- PTRN Cash (including cash equivalents) makes up $313 Mil of $843 Mil in total Assets. This yields a Cash-to-Assets Ratio of 37.1%
| PTRN | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 1.9% | 19.4% |
| Current Cash-to-Assets Ratio | 37.1% | 7.2% |
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