WEATHERFORD INTERNATIONAL PL (WFRD) Stock Fundamental Analysis
NASDAQ:WFRD - Nasdaq - IE00BLNN3691 - Common Stock - Currency: USD
Taking everything into account, WFRD scores 5 out of 10 in our fundamental rating. WFRD was compared to 62 industry peers in the Energy Equipment & Services industry. WFRD scores excellent on profitability, but there are some minor concerns on its financial health. WFRD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WFRD had positive earnings in the past year.
WFRD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WFRD reported negative net income in multiple years.
WFRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WFRD (9.30%) is better than 88.71% of its industry peers.
WFRD's Return On Equity of 34.76% is amongst the best of the industry. WFRD outperforms 95.16% of its industry peers.
With an excellent Return On Invested Capital value of 21.38%, WFRD belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WFRD is significantly above the industry average of 8.42%.
The 3 year average ROIC (18.48%) for WFRD is below the current ROIC(21.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.3% | ||
| ROE | 34.76% | ||
| ROIC | 21.38% |
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 8.79%. This is in the better half of the industry: WFRD outperforms 67.74% of its industry peers.
WFRD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.09%, WFRD is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Operating Margin of WFRD has grown nicely.
WFRD has a better Gross Margin (33.81%) than 66.13% of its industry peers.
In the last couple of years the Gross Margin of WFRD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 8.79% | ||
| GM | 33.81% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WFRD is creating value.
WFRD has about the same amout of shares outstanding than it did 1 year ago.
WFRD has more shares outstanding than it did 5 years ago.
WFRD has a better debt/assets ratio than last year.
2.2 Solvency
WFRD has an Altman-Z score of 2.35. 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.
The Altman-Z score of WFRD (2.35) is better than 69.35% of its industry peers.
WFRD has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as WFRD would need 3.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.30, WFRD is in line with its industry, outperforming 58.06% of the companies in the same industry.
WFRD has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
WFRD has a worse Debt to Equity ratio (1.17) than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 2.35 |
ROIC/WACC2.19
WACC9.78%
2.3 Liquidity
A Current Ratio of 2.08 indicates that WFRD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.08, WFRD is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that WFRD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.52, WFRD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.52 |
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.
Looking at the last year, WFRD shows a small growth in Revenue. The Revenue has grown by 7.36% in the last year.
WFRD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.12% yearly.
EPS 1Y (TTM)-18.15%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-45.18%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-14.31%
3.2 Future
Based on estimates for the next years, WFRD will show a small growth in Earnings Per Share. The EPS will grow by 2.63% on average per year.
The Revenue is expected to grow by 0.12% on average over the next years.
EPS Next Y-26.72%
EPS Next 2Y-2.42%
EPS Next 3Y2.84%
EPS Next 5Y2.63%
Revenue Next Year-14.71%
Revenue Next 2Y-6.4%
Revenue Next 3Y-3.52%
Revenue Next 5Y0.12%
3.3 Evolution
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.61, the valuation of WFRD can be described as very reasonable.
Based on the Price/Earnings ratio, WFRD is valued a bit cheaper than the industry average as 79.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, WFRD is valued rather cheaply.
The Price/Forward Earnings ratio is 9.12, which indicates a very decent valuation of WFRD.
Based on the Price/Forward Earnings ratio, WFRD is valued cheaper than 87.10% of the companies in the same industry.
WFRD is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFRD is valued a bit cheaper than 75.81% of the companies in the same industry.
75.81% of the companies in the same industry are more expensive than WFRD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | 4.03 |
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-2.42%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
WFRD has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
WFRD's Dividend Yield is a higher than the industry average which is at 3.69.
WFRD's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 11.49% of its income as dividend. This is a sustainable payout ratio.
DP11.49%
EPS Next 2Y-2.42%
EPS Next 3Y2.84%
58.38
+2.65 (+4.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change0.02%
Ins Owners2.02%
Ins Owner Change13.94%
Market Cap4.24B
Analysts81.54
Price Target71.4 (22.3%)
Short Float %4.5%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP11.49%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.75%
Min EPS beat(2)13.49%
Max EPS beat(2)18.02%
EPS beat(4)3
Avg EPS beat(4)10.76%
Min EPS beat(4)-6.5%
Max EPS beat(4)18.03%
EPS beat(8)7
Avg EPS beat(8)22.45%
EPS beat(12)10
Avg EPS beat(12)30.97%
EPS beat(16)12
Avg EPS beat(16)9.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)-1.65%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)0.05%
Revenue beat(16)6
Avg Revenue beat(16)0.03%
PT rev (1m)-4.48%
PT rev (3m)-21.47%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-21.88%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-17.22%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-8.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.79 | ||
| P/FCF | 8.72 | ||
| P/OCF | 5.28 | ||
| P/B | 3.13 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)5.5
EY9.42%
EPS(NY)6.4
Fwd EY10.96%
FCF(TTM)6.7
FCFY11.47%
OCF(TTM)11.07
OCFY18.96%
SpS73.7
BVpS18.63
TBVpS14.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.3% | ||
| ROE | 34.76% | ||
| ROCE | 26.21% | ||
| ROIC | 21.38% | ||
| ROICexc | 28.52% | ||
| ROICexgc | 32.43% | ||
| OM | 17.09% | ||
| PM (TTM) | 8.79% | ||
| GM | 33.81% | ||
| FCFM | 9.09% |
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-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 3.3 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 99.06% | ||
| Cap/Sales | 5.93% | ||
| Interest Coverage | 6.22 | ||
| Cash Conversion | 65.07% | ||
| Profit Quality | 103.4% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 2.35 |
F-Score7
WACC9.78%
ROIC/WACC2.19
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-26.72%
EPS Next 2Y-2.42%
EPS Next 3Y2.84%
EPS Next 5Y2.63%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-14.31%
Revenue Next Year-14.71%
Revenue Next 2Y-6.4%
Revenue Next 3Y-3.52%
Revenue Next 5Y0.12%
EBIT growth 1Y5.18%
EBIT growth 3Y110.88%
EBIT growth 5Y69.52%
EBIT Next Year4.34%
EBIT Next 3Y5.54%
EBIT Next 5Y2.92%
FCF growth 1Y51.4%
FCF growth 3Y27.65%
FCF growth 5YN/A
OCF growth 1Y61.57%
OCF growth 3Y34.99%
OCF growth 5YN/A