WEATHERFORD INTERNATIONAL PL (WFRD) Stock Fundamental Analysis
NASDAQ:WFRD - Nasdaq - IE00BLNN3691 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to WFRD. WFRD was compared to 63 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 is cheap, but on the other hand it scores bad on growth. These ratings would make WFRD suitable for value investing!
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.
In the past 5 years WFRD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.30%, WFRD belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 34.76%, WFRD belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Invested Capital of WFRD (21.38%) is better than 98.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WFRD is significantly above the industry average of 8.44%.
The last Return On Invested Capital (21.38%) for WFRD is above the 3 year average (18.48%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.79%, WFRD is doing good in the industry, outperforming 68.25% of the companies in the same industry.
WFRD's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 17.09%, WFRD is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of WFRD has grown nicely.
Looking at the Gross Margin, with a value of 33.81%, WFRD is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
WFRD's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WFRD is creating value.
WFRD has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WFRD has been increased compared to 5 years ago.
The debt/assets ratio for WFRD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 indicates that WFRD is not a great score, but indicates only limited risk for bankruptcy at the moment.
WFRD's Altman-Z score of 2.25 is fine compared to the rest of the industry. WFRD outperforms 66.67% 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.
The Debt to FCF ratio of WFRD (3.30) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that WFRD has dependencies on debt financing.
With a Debt to Equity ratio value of 1.17, WFRD is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 2.25 |
ROIC/WACC2.57
WACC8.33%
2.3 Liquidity
WFRD has a Current Ratio of 2.08. This indicates that WFRD is financially healthy and has no problem in meeting its short term obligations.
WFRD's Current ratio of 2.08 is fine compared to the rest of the industry. WFRD outperforms 61.90% of its industry peers.
A Quick Ratio of 1.52 indicates that WFRD should not have too much problems paying its short term obligations.
WFRD has a Quick ratio (1.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for WFRD have decreased strongly by -10.20% in the last year.
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 0.77% in the last year.
The Revenue has been growing slightly by 1.12% on average over the past years.
EPS 1Y (TTM)-10.2%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-31.33%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-12.15%
3.2 Future
WFRD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.63% yearly.
WFRD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.12% yearly.
EPS Next Y-26.47%
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
EPS Next 5Y2.63%
Revenue Next Year-14.66%
Revenue Next 2Y-6.34%
Revenue Next 3Y-3.51%
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.
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
Based on the Price/Earnings ratio of 8.34, the valuation of WFRD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WFRD indicates a rather cheap valuation: WFRD is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. WFRD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of WFRD.
WFRD's Price/Forward Earnings ratio is rather cheap when compared to the industry. WFRD is cheaper than 90.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WFRD to the average of the S&P500 Index (21.70), we can say WFRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
82.54% of the companies in the same industry are more expensive than WFRD, based on the Enterprise Value to EBITDA ratio.
WFRD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WFRD is cheaper than 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
WFRD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, WFRD has a reasonable but not impressive dividend return.
WFRD's Dividend Yield is a higher than the industry average which is at 3.70.
WFRD's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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-2.1%
EPS Next 3Y2.74%
52.14
+1.83 (+3.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change-1.63%
Ins Owners2.02%
Ins Owner Change56.89%
Market Cap3.78B
Analysts81.54
Price Target71.4 (36.94%)
Short Float %4.4%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)-8.07%
PT rev (3m)-27.46%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-25.36%
EPS NY rev (1m)-2.24%
EPS NY rev (3m)-25.68%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-7.9%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-9.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 8.1 | ||
| P/S | 0.71 | ||
| P/FCF | 7.78 | ||
| P/OCF | 4.71 | ||
| P/B | 2.8 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)6.25
EY11.99%
EPS(NY)6.44
Fwd EY12.35%
FCF(TTM)6.7
FCFY12.85%
OCF(TTM)11.07
OCFY21.22%
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 | 2.25 |
F-Score7
WACC8.33%
ROIC/WACC2.57
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)-10.2%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-31.33%
EPS Next Y-26.47%
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
EPS Next 5Y2.63%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-12.15%
Revenue Next Year-14.66%
Revenue Next 2Y-6.34%
Revenue Next 3Y-3.51%
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