For those who appreciate value investing, WEATHERFORD INTERNATIONAL PL (NASDAQ:WFRD) is a compelling option with its solid fundamentals.

Our stock screening tool has identified WEATHERFORD INTERNATIONAL PL (NASDAQ:WFRD) as an undervalued gem with strong fundamentals. WFRD boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Looking at the Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of WFRD, the assigned 8 reflects its valuation:

• Based on the Price/Earnings ratio of 7.37, the valuation of WFRD can be described as very cheap.
• WFRD's Price/Earnings ratio is rather cheap when compared to the industry. WFRD is cheaper than 91.94% of the companies in the same industry.
• WFRD is valuated cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 6.31 indicates a rather cheap valuation of WFRD.
• WFRD's Price/Forward Earnings ratio is rather cheap when compared to the industry. WFRD is cheaper than 88.71% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of WFRD to the average of the S&P500 Index (20.44), we can say WFRD is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, WFRD is valued cheaper than 87.10% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFRD indicates a rather cheap valuation: WFRD is cheaper than 80.65% of the companies listed in the same industry.
• WFRD has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for WFRD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, WFRD has achieved a 8:

• WFRD has a better Return On Assets (9.81%) than 85.48% of its industry peers.
• The Return On Equity of WFRD (39.38%) is better than 93.55% of its industry peers.
• The Return On Invested Capital of WFRD (23.11%) is better than 98.39% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for WFRD is significantly above the industry average of 8.29%.
• The last Return On Invested Capital (23.11%) for WFRD is above the 3 year average (18.48%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 9.18%, WFRD is doing good in the industry, outperforming 67.74% of the companies in the same industry.
• WFRD's Operating Margin of 17.79% is amongst the best of the industry. WFRD outperforms 80.65% of its industry peers.
• In the last couple of years the Operating Margin of WFRD has grown nicely.
• The Gross Margin of WFRD (34.61%) is better than 70.97% of its industry peers.
• In the last couple of years the Gross Margin of WFRD has grown nicely.

Deciphering WFRD's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. WFRD has achieved a 5 out of 10:

• With a decent Altman-Z score value of 2.20, WFRD is doing good in the industry, outperforming 69.35% of the companies in the same industry.
• WFRD has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as WFRD would need 3.31 years to pay back of all of its debts.
• A Current Ratio of 2.01 indicates that WFRD has no problem at all paying its short term obligations.

Assessing Growth for WFRD

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. WFRD boasts a 4 out of 10:

• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of WFRD

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.