WEATHERFORD INTERNATIONAL PL (WFRD) Stock Fundamental Analysis
USA - NASDAQ:WFRD - IE00BLNN3691 - Common Stock
65.64 USD
-0.65 (-0.98%)
65.64 USD
0 (0%)
Taking everything into account, WFRD scores 5 out of 10 in our fundamental rating. 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 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.
In multiple years WFRD reported negative net income over the last 5 years.
Each year in the past 5 years WFRD had a positive operating cash flow.
1.2 Ratios
WFRD has a Return On Assets of 9.36%. This is amongst the best in the industry. WFRD outperforms 86.89% of its industry peers.
The Return On Equity of WFRD (31.85%) is better than 93.44% of its industry peers.
WFRD has a better Return On Invested Capital (18.50%) than 98.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WFRD is significantly above the industry average of 8.04%.
The last Return On Invested Capital (18.50%) for WFRD is above the 3 year average (18.48%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.35%, WFRD is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
In the last couple of years the Profit Margin of WFRD has declined.
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.
WFRD has a Gross Margin of 32.43%. This is in the better half of the industry: WFRD outperforms 63.93% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WFRD is creating value.
Compared to 1 year ago, WFRD has about the same amount of shares outstanding.
The number of shares outstanding for WFRD has been increased compared to 5 years ago.
Compared to 1 year ago, WFRD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.38 indicates that WFRD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.38, WFRD is doing good in the industry, outperforming 67.21% of the companies in the same industry.
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 has a Debt to FCF ratio (3.37) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that WFRD has dependencies on debt financing.
WFRD has a worse Debt to Equity ratio (1.04) than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.93
WACC9.58%
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.
The Current ratio of WFRD (2.21) is better than 67.21% of its industry peers.
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.
WFRD's Quick ratio of 1.63 is fine compared to the rest of the industry. WFRD outperforms 60.66% of its industry peers.
| 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.
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)-5.35%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-14.31%
3.2 Future
The Earnings Per Share is expected to decrease by -0.24% on average over the next years.
Based on estimates for the next years, WFRD will show a decrease in Revenue. The Revenue will decrease by -0.54% on average per year.
EPS Next Y-23.08%
EPS Next 2Y-13.83%
EPS Next 3Y0.29%
EPS Next 5Y-0.24%
Revenue Next Year-13.97%
Revenue Next 2Y-7.3%
Revenue Next 3Y-3.67%
Revenue Next 5Y-0.54%
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
With a Price/Earnings ratio of 11.93, the valuation of WFRD can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WFRD indicates a rather cheap valuation: WFRD is cheaper than 80.33% of the companies listed in the same industry.
WFRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
Based on the Price/Forward Earnings ratio of 13.15, the valuation of WFRD can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WFRD indicates a somewhat cheap valuation: WFRD is cheaper than 70.49% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. WFRD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFRD indicates a somewhat cheap valuation: WFRD is cheaper than 73.77% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WFRD is valued a bit cheaper than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 4.78 |
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-13.83%
EPS Next 3Y0.29%
5. Dividend
5.1 Amount
WFRD has a Yearly Dividend Yield of 1.51%.
Compared to an average industry Dividend Yield of 3.26, WFRD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, WFRD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
WFRD does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
14.97% of the earnings are spent on dividend by WFRD. This is a low number and sustainable payout ratio.
DP14.97%
EPS Next 2Y-13.83%
EPS Next 3Y0.29%
65.64
-0.65 (-0.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change-0.46%
Ins Owners2.04%
Ins Owner Change0%
Market Cap4.72B
Analysts83.08
Price Target70.09 (6.78%)
Short Float %4.64%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)0.63%
PT rev (3m)-1.84%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)4.09%
EPS NY rev (3m)4.62%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 13.15 | ||
| P/S | 0.92 | ||
| P/FCF | 9.99 | ||
| P/OCF | 6.04 | ||
| P/B | 3.12 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 4.78 |
EPS(TTM)5.5
EY8.38%
EPS(NY)4.99
Fwd EY7.6%
FCF(TTM)6.57
FCFY10.01%
OCF(TTM)10.87
OCFY16.56%
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 | 2.38 |
F-Score5
WACC9.58%
ROIC/WACC1.93
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-23.08%
EPS Next 2Y-13.83%
EPS Next 3Y0.29%
EPS Next 5Y-0.24%
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-0.54%
EBIT growth 1Y-11.67%
EBIT growth 3Y110.88%
EBIT growth 5Y69.52%
EBIT Next Year2.17%
EBIT Next 3Y4.95%
EBIT Next 5Y0.97%
FCF growth 1Y4.89%
FCF growth 3Y27.65%
FCF growth 5YN/A
OCF growth 1Y22.41%
OCF growth 3Y34.99%
OCF growth 5YN/A