W&T OFFSHORE INC (WTI)
US92922P1066 - Common Stock
WTI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of WTI have multiple concerns. WTI does not seem to be growing, but still is valued expensively.
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.
In the past 5 years WTI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WTI (-1.94%) is worse than 82.38% of its industry peers.
WTI's Return On Equity of -105.40% is on the low side compared to the rest of the industry. WTI is outperformed by 93.33% of its industry peers.
The Return On Invested Capital of WTI (1.30%) is worse than 81.90% 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 30.77%.
The 3 year average ROIC (20.36%) for WTI is well above the current ROIC(1.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -105.4% | ||
| ROIC | 1.3% |
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
WTI's Profit Margin has declined in the last couple of years.
The Operating Margin of WTI (3.53%) is worse than 77.62% of its industry peers.
WTI's Operating Margin has declined in the last couple of years.
WTI's Gross Margin of 51.39% is in line compared to the rest of the industry. WTI outperforms 55.24% of its industry peers.
In the last couple of years the Gross Margin of WTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | N/A | ||
| GM | 51.39% |
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.
The number of shares outstanding for WTI has been increased compared to 5 years ago.
The debt/assets ratio for WTI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.06, we must say that WTI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.06, WTI is doing worse than 72.38% of the companies in the same industry.
A Debt/Equity ratio of 18.51 is on the high side and indicates that WTI has dependencies on debt financing.
WTI has a worse Debt to Equity ratio (18.51) than 94.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.06 |
ROIC/WACC0.2
WACC6.5%
2.3 Liquidity
WTI has a Current Ratio of 1.08. 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 Current ratio of 1.08 is in line compared to the rest of the industry. WTI outperforms 43.33% of its industry peers.
WTI has a Quick Ratio of 1.08. 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 Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for WTI have decreased strongly by -105.74% in the last year.
The earnings per share for WTI have been decreasing by -43.27% on average. This is quite bad
The Revenue for WTI has decreased by -37.14% 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)-105.74%
EPS 3Y-26.04%
EPS 5Y-43.27%
EPS Q2Q%-150%
Revenue 1Y (TTM)-37.14%
Revenue growth 3Y15.4%
Revenue growth 5Y-1.71%
Sales Q2Q%6.88%
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 23.59% on average per year.
WTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y-1%
EPS Next 2Y-146.17%
EPS Next 3Y23.59%
EPS Next 5YN/A
Revenue Next Year18.95%
Revenue Next 2Y2.95%
Revenue Next 3Y1.03%
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.
4. Valuation
4.1 Price/Earnings Ratio
WTI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year WTI is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WTI is valued cheaply inside the industry as 82.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.67 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WTI's earnings are expected to grow with 23.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-146.17%
EPS Next 3Y23.59%
5. Dividend
5.1 Amount
WTI has a Yearly Dividend Yield of 1.65%.
Compared to an average industry Dividend Yield of 5.93, WTI is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.30, WTI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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.
The dividend of WTI decreased recently.
Dividend Growth(5Y)-60.99%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of WTI are negative and hence is the payout ratio. WTI will probably not be able to sustain this dividend level.
DP-13.41%
EPS Next 2Y-146.17%
EPS Next 3Y23.59%
W&T OFFSHORE INC
NYSE:WTI (7/26/2024, 7:07:31 PM)
After market: 2.3502 -0.03 (-1.25%)2.38
+0.04 (+1.71%)
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 Cap349.53M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 | N/A | ||
| 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 | -1.94% | ||
| ROE | -105.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.53% | ||
| PM (TTM) | N/A | ||
| GM | 51.39% | ||
| 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 | 18.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-105.74%
EPS 3Y-26.04%
EPS 5Y
EPS Q2Q%
EPS Next Y-1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-37.14%
Revenue growth 3Y15.4%
Revenue growth 5Y
Sales 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