W&T OFFSHORE INC (WTI)
US92922P1066 - Common Stock
Overall WTI gets a fundamental rating of 4 out of 10. We evaluated WTI against 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.
1. Profitability
1.1 Basic Checks
WTI had negative earnings in the past year.
WTI had a positive operating cash flow in the past year.
Of the past 5 years WTI 4 years were profitable.
Each year in the past 5 years WTI had a positive operating cash flow.
1.2 Ratios
WTI has a worse Return On Assets (1.40%) than 76.53% of its industry peers.
Looking at the Return On Equity, with a value of 50.01%, WTI belongs to the top of the industry, outperforming 89.20% of the companies in the same industry.
WTI has a worse Return On Invested Capital (2.09%) than 80.28% 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 last Return On Invested Capital (2.09%) for WTI is well below the 3 year average (20.36%), which needs to be investigated, but indicates that WTI had better years and this may not be a problem.
| Industry Rank | Sector 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
The Profit Margin of WTI (2.93%) is worse than 73.71% of its industry peers.
In the last couple of years the Profit Margin of WTI has declined.
With a Operating Margin value of 5.54%, WTI is not doing good in the industry: 77.46% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WTI has declined.
WTI has a Gross Margin (51.62%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WTI has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
WTI has an Altman-Z score of 0.14. This is a bad value and indicates that WTI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WTI (0.14) is worse than 68.54% of its industry peers.
WTI has a debt to FCF ratio of 11.40. This is a negative value and a sign of low solvency as WTI would need 11.40 years to pay back of 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.
A Debt/Equity ratio of 11.58 is on the high side and indicates that WTI has dependencies on debt financing.
The Debt to Equity ratio of WTI (11.58) is worse than 94.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.58 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.3
WACC6.94%
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.
Looking at the Current ratio, with a value of 1.22, WTI is in line with its industry, outperforming 52.11% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that WTI should not have too much problems paying its short term obligations.
WTI has a better Quick ratio (1.22) than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for WTI have decreased strongly by -103.88% in the last year.
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
Measured over the past years, WTI shows a decrease in Revenue. The Revenue has been decreasing by -1.71% on average per year.
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
The Earnings Per Share is expected to grow by 106.02% on average over the next years. This is a very strong growth
WTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.95% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WTI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 11.53, which indicates a very decent valuation of WTI.
The rest of the industry has a similar Price/Forward Earnings ratio as WTI.
When comparing the Price/Forward Earnings ratio of WTI to the average of the S&P500 Index (21.67), we can say WTI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
87.79% of the companies in the same industry are more expensive than WTI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WTI is valued a bit cheaper than 63.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 3.26 |
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.
A more expensive valuation may be justified as WTI's earnings are expected to grow with 106.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y106.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WTI has a Yearly Dividend Yield of 1.68%.
The stock price of WTI dropped by -27.30% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.79, WTI is paying slightly less dividend.
WTI's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of WTI decreases each year by -60.99%.
WTI has paid a dividend for at least 10 years, which is 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 (4/25/2024, 3:04:30 PM)
After market: 2.34 +0.01 (+0.43%)2.33
-0.04 (-1.69%)
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 Cap342.18M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.53 | ||
| 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 Rank | Sector 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 Rank | Sector 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