WEATHERFORD INTERNATIONAL PL (WFRD) Stock Fundamental Analysis
USA - NASDAQ:WFRD - IE00BLNN3691 - Common Stock
62.3 USD
-0.42 (-0.67%)
61.78 USD
-0.52 (-0.83%)
We assign a fundamental rating of 6 out of 10 to WFRD. WFRD was compared to 61 industry peers in the Energy Equipment & Services industry. While WFRD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WFRD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WFRD had positive earnings in the past year.
In the past year WFRD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WFRD reported negative net income in multiple years.
Each year in the past 5 years WFRD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.36%, WFRD belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
WFRD has a Return On Equity of 31.85%. This is amongst the best in the industry. WFRD outperforms 93.44% of its industry peers.
The Return On Invested Capital of WFRD (18.50%) is better than 98.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WFRD is significantly above the industry average of 8.01%.
The 3 year average ROIC (18.48%) for WFRD is below the current ROIC(18.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 31.85% | ||
| ROIC | 18.5% |
ROA(3y)6.2%
ROA(5y)-5.24%
ROE(3y)29.79%
ROE(5y)-43.55%
ROIC(3y)18.48%
ROIC(5y)N/A
1.3 Margins
WFRD has a Profit Margin of 9.35%. This is in the better half of the industry: WFRD outperforms 75.41% of its industry peers.
WFRD's Profit Margin has declined in the last couple of years.
WFRD has a better Operating Margin (16.03%) than 75.41% of its industry peers.
In the last couple of years the Operating Margin of WFRD has grown nicely.
With a decent Gross Margin value of 32.43%, WFRD is doing good in the industry, outperforming 63.93% of the companies in the same industry.
WFRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.03% | ||
| PM (TTM) | 9.35% | ||
| GM | 32.43% |
OM growth 3Y83.71%
OM growth 5Y67.65%
PM growth 3YN/A
PM growth 5Y-33.33%
GM growth 3Y10.74%
GM growth 5Y9.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WFRD is creating value.
Compared to 1 year ago, WFRD has about the same amount of shares outstanding.
Compared to 5 years ago, WFRD has more shares outstanding
The debt/assets ratio for WFRD has been reduced compared to a year ago.
2.2 Solvency
WFRD has an Altman-Z score of 2.34. This is not the best score and indicates that WFRD is in the grey zone with still only limited risk for bankruptcy at the moment.
WFRD's Altman-Z score of 2.34 is fine compared to the rest of the industry. WFRD outperforms 68.85% of its industry peers.
WFRD has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as WFRD would need 3.37 years to pay back of all of its debts.
WFRD's Debt to FCF ratio of 3.37 is fine compared to the rest of the industry. WFRD outperforms 60.66% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that WFRD has dependencies on debt financing.
WFRD's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. WFRD is outperformed by 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.96
WACC9.42%
2.3 Liquidity
WFRD has a Current Ratio of 2.21. This indicates that WFRD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.21, WFRD is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
WFRD has a Quick Ratio of 1.63. This is a normal value and indicates that WFRD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.63, WFRD is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
WFRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.15%.
WFRD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.50% yearly.
The Revenue has decreased by -5.35% in the past year.
Measured over the past years, WFRD shows a small growth in Revenue. The Revenue has been growing by 1.12% on average per year.
EPS 1Y (TTM)-18.15%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-45.18%
Revenue 1Y (TTM)-5.35%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-14.31%
3.2 Future
WFRD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.93% yearly.
The Revenue is expected to decrease by -0.84% on average over the next years.
EPS Next Y-26.1%
EPS Next 2Y-6.74%
EPS Next 3Y2.57%
EPS Next 5Y1.93%
Revenue Next Year-13.97%
Revenue Next 2Y-7.3%
Revenue Next 3Y-3.67%
Revenue Next 5Y-0.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WFRD is valuated reasonably with a Price/Earnings ratio of 11.33.
78.69% of the companies in the same industry are more expensive than WFRD, based on the Price/Earnings ratio.
WFRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 10.66, which indicates a very decent valuation of WFRD.
86.89% of the companies in the same industry are more expensive than WFRD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, WFRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
WFRD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WFRD is cheaper than 75.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WFRD is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 4.56 |
4.3 Compensation for Growth
The excellent profitability rating of WFRD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.74%
EPS Next 3Y2.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, WFRD has a reasonable but not impressive dividend return.
WFRD's Dividend Yield is a higher than the industry average which is at 3.34.
WFRD's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
WFRD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
WFRD pays out 14.97% of its income as dividend. This is a sustainable payout ratio.
DP14.97%
EPS Next 2Y-6.74%
EPS Next 3Y2.57%
62.3
-0.42 (-0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.93%
Inst Owner Change-0.41%
Ins Owners2.04%
Ins Owner Change0%
Market Cap4.48B
Analysts83.08
Price Target70.09 (12.5%)
Short Float %4.94%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP14.97%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.38%
Min EPS beat(2)-7.26%
Max EPS beat(2)18.02%
EPS beat(4)3
Avg EPS beat(4)10.57%
Min EPS beat(4)-7.26%
Max EPS beat(4)18.03%
EPS beat(8)6
Avg EPS beat(8)13.46%
EPS beat(12)9
Avg EPS beat(12)17.81%
EPS beat(16)11
Avg EPS beat(16)7.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)0.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)0.92%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)6
Avg Revenue beat(16)-0.24%
PT rev (1m)0.42%
PT rev (3m)-6.24%
EPS NQ rev (1m)2.99%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)0.85%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-13.38%
Revenue NY rev (1m)2.38%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.87 | ||
| P/FCF | 9.48 | ||
| P/OCF | 5.73 | ||
| P/B | 2.96 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 4.56 |
EPS(TTM)5.5
EY8.83%
EPS(NY)5.85
Fwd EY9.38%
FCF(TTM)6.57
FCFY10.55%
OCF(TTM)10.87
OCFY17.45%
SpS71.65
BVpS21.02
TBVpS16.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 31.85% | ||
| ROCE | 22.68% | ||
| ROIC | 18.5% | ||
| ROICexc | 24.97% | ||
| ROICexgc | 28.16% | ||
| OM | 16.03% | ||
| PM (TTM) | 9.35% | ||
| GM | 32.43% | ||
| FCFM | 9.17% |
ROA(3y)6.2%
ROA(5y)-5.24%
ROE(3y)29.79%
ROE(5y)-43.55%
ROIC(3y)18.48%
ROIC(5y)N/A
ROICexc(3y)22.89%
ROICexc(5y)N/A
ROICexgc(3y)27.08%
ROICexgc(5y)N/A
ROCE(3y)22.65%
ROCE(5y)N/A
ROICexcg growth 3Y76.31%
ROICexcg growth 5Y74.75%
ROICexc growth 3Y88.94%
ROICexc growth 5Y82.49%
OM growth 3Y83.71%
OM growth 5Y67.65%
PM growth 3YN/A
PM growth 5Y-33.33%
GM growth 3Y10.74%
GM growth 5Y9.36%
F-Score5
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 103.69% | ||
| Cap/Sales | 6% | ||
| Interest Coverage | 5.81 | ||
| Cash Conversion | 69.55% | ||
| Profit Quality | 98.13% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.34 |
F-Score5
WACC9.42%
ROIC/WACC1.96
Cap/Depr(3y)62.97%
Cap/Depr(5y)47.93%
Cap/Sales(3y)4.18%
Cap/Sales(5y)3.83%
Profit Quality(3y)360.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.15%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-45.18%
EPS Next Y-26.1%
EPS Next 2Y-6.74%
EPS Next 3Y2.57%
EPS Next 5Y1.93%
Revenue 1Y (TTM)-5.35%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-14.31%
Revenue Next Year-13.97%
Revenue Next 2Y-7.3%
Revenue Next 3Y-3.67%
Revenue Next 5Y-0.84%
EBIT growth 1Y-11.67%
EBIT growth 3Y110.88%
EBIT growth 5Y69.52%
EBIT Next Year2.27%
EBIT Next 3Y5.04%
EBIT Next 5Y2.16%
FCF growth 1Y4.89%
FCF growth 3Y27.65%
FCF growth 5YN/A
OCF growth 1Y22.41%
OCF growth 3Y34.99%
OCF growth 5YN/A