W&T OFFSHORE INC (WTI)

US92922P1066 - Common Stock

2.37  -0.04 (-1.66%)

After market: 2.39 +0.02 (+0.84%)

Fundamental Rating

4

Taking everything into account, WTI scores 4 out of 10 in our fundamental rating. WTI was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. WTI may be in some trouble as it scores bad on both profitability and health. WTI has a correct valuation and a medium growth rate.



3

1. Profitability

1.1 Basic Checks

WTI had negative earnings in the past year.
In the past year WTI had a positive cash flow from operations.
Of the past 5 years WTI 4 years were profitable.
WTI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of 1.40%, WTI is not doing good in the industry: 77.00% of the companies in the same industry are doing better.
The Return On Equity of WTI (50.01%) is better than 89.20% of its industry peers.
The Return On Invested Capital of WTI (2.09%) is worse than 80.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WTI is significantly below the industry average of 45.80%.
The 3 year average ROIC (20.36%) for WTI is well above the current ROIC(2.09%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 1.4%
ROE 50.01%
ROIC 2.09%
ROA(3y)4.69%
ROA(5y)5.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.36%
ROIC(5y)14.08%

1.3 Margins

Looking at the Profit Margin, with a value of 2.93%, WTI is doing worse than 73.71% of the companies in the same industry.
In the last couple of years the Profit Margin of WTI has declined.
WTI's Operating Margin of 5.54% is on the low side compared to the rest of the industry. WTI is outperformed by 77.46% of its industry peers.
WTI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.62%, WTI is in line with its industry, outperforming 52.58% of the companies in the same industry.
WTI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.54%
PM (TTM) 2.93%
GM 51.62%
OM growth 3Y188.41%
OM growth 5Y-30.14%
PM growth 3Y-35.26%
PM growth 5Y-41.53%
GM growth 3Y-0.89%
GM growth 5Y-6.85%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WTI is creating value.
The number of shares outstanding for WTI has been increased compared to 1 year ago.
WTI has more shares outstanding than it did 5 years ago.
WTI has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.15, we must say that WTI is in the distress zone and has some risk of bankruptcy.
WTI has a Altman-Z score of 0.15. This is in the lower half of the industry: WTI underperforms 69.01% of its industry peers.
The Debt to FCF ratio of WTI is 11.40, which is on the high side as it means it would take WTI, 11.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.40, WTI is not doing good in the industry: 61.50% of the companies in the same industry are doing better.
WTI has a Debt/Equity ratio of 11.58. This is a high value indicating a heavy dependency on external financing.
WTI has a worse Debt to Equity ratio (11.58) than 95.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 11.58
Debt/FCF 11.4
Altman-Z 0.15
ROIC/WACC0.3
WACC6.93%

2.3 Liquidity

WTI has a Current Ratio of 1.22. This is a normal value and indicates that WTI is financially healthy and should not expect problems in meeting its short term obligations.
WTI has a Current ratio (1.22) which is in line with its industry peers.
WTI has a Quick Ratio of 1.22. This is a normal value and indicates that WTI is financially healthy and should not expect problems in meeting its short term obligations.
WTI's Quick ratio of 1.22 is fine compared to the rest of the industry. WTI outperforms 63.38% of its industry peers.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22

4

3. Growth

3.1 Past

WTI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -103.88%.
Measured over the past years, WTI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -43.27% on average per year.
The Revenue for WTI has decreased by -42.17% in the past year. This is quite bad
WTI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.71% yearly.
EPS 1Y (TTM)-103.88%
EPS 3Y-26.04%
EPS 5Y-43.27%
EPS growth Q2Q-100%
Revenue 1Y (TTM)-42.17%
Revenue growth 3Y15.4%
Revenue growth 5Y-1.71%
Revenue growth Q2Q-30.24%

3.2 Future

Based on estimates for the next years, WTI will show a very strong growth in Earnings Per Share. The EPS will grow by 106.02% on average per year.
Based on estimates for the next years, WTI will show a quite strong growth in Revenue. The Revenue will grow by 11.95% on average per year.
EPS Next Y324.44%
EPS Next 2Y106.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.14%
Revenue Next 2Y11.95%
Revenue Next 3YN/A
Revenue Next 5YN/A

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 accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for WTI. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 11.73 indicates a reasonable valuation of WTI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTI is on the same level as its industry peers.
WTI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 11.73

4.2 Price Multiples

WTI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WTI is cheaper than 87.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WTI is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.16
EV/EBITDA 3.3

4.3 Compensation for Growth

WTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WTI's earnings are expected to grow with 106.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y106.02%
EPS Next 3YN/A

3

5. Dividend

5.1 Amount

WTI has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of WTI has falen by -27.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.79, WTI is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.45, WTI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

The dividend of WTI decreases each year by -60.99%.
WTI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-60.99%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

WTI pays out 9.40% of its income as dividend. This is a sustainable payout ratio.
DP9.4%
EPS Next 2Y106.02%
EPS Next 3YN/A

W&T OFFSHORE INC

NYSE:WTI (4/22/2024, 6:00:00 PM)

After market: 2.39 +0.02 (+0.84%)

2.37

-0.04 (-1.66%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap348.06M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.68%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 11.73
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.4%
ROE 50.01%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.54%
PM (TTM) 2.93%
GM 51.62%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 11.58
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.22
Quick Ratio 1.22
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-103.88%
EPS 3Y-26.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y324.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-42.17%
Revenue growth 3Y15.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y