NASDAQ:WFRD, an undervalued stock with good fundamentals.

Last update: Oct 29, 2024

Our stock screening tool has identified WEATHERFORD INTERNATIONAL PL (NASDAQ:WFRD) as an undervalued gem with strong fundamentals. NASDAQ:WFRD boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Unpacking NASDAQ:WFRD's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:WFRD has achieved a 8 out of 10:

With a Price/Earnings ratio of 11.24, the valuation of WFRD can be described as very reasonable.
81.36% of the companies in the same industry are more expensive than WFRD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WFRD to the average of the S&P500 Index (31.09), we can say WFRD is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.69, the valuation of WFRD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WFRD indicates a somewhat cheap valuation: WFRD is cheaper than 67.80% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. WFRD is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFRD indicates a somewhat cheap valuation: WFRD is cheaper than 67.80% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFRD indicates a somewhat cheap valuation: WFRD is cheaper than 66.10% of the companies listed in the same industry.
WFRD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WFRD may justify a higher PE ratio.
A more expensive valuation may be justified as WFRD's earnings are expected to grow with 18.16% in the coming years.

Profitability Analysis for NASDAQ:WFRD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:WFRD has achieved a 7:

With an excellent Return On Assets value of 10.29%, WFRD belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
WFRD has a Return On Equity of 39.70%. This is amongst the best in the industry. WFRD outperforms 93.22% of its industry peers.
With an excellent Return On Invested Capital value of 17.21%, WFRD belongs to the best of the industry, outperforming 96.61% of the companies in the same industry.
The last Return On Invested Capital (17.21%) for WFRD is above the 3 year average (8.87%), which is a sign of increasing profitability.
WFRD has a better Profit Margin (9.65%) than 74.58% of its industry peers.
The Operating Margin of WFRD (17.42%) is better than 79.66% of its industry peers.
WFRD's Operating Margin has improved in the last couple of years.
The Gross Margin of WFRD (35.11%) is better than 67.80% of its industry peers.
In the last couple of years the Gross Margin of WFRD has grown nicely.

Health Analysis for NASDAQ:WFRD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:WFRD has received a 5 out of 10:

With a decent Altman-Z score value of 2.57, WFRD is doing good in the industry, outperforming 69.49% of the companies in the same industry.
The Debt to FCF ratio of WFRD is 2.53, which is a good value as it means it would take WFRD, 2.53 years of fcf income to pay off all of its debts.
WFRD's Debt to FCF ratio of 2.53 is fine compared to the rest of the industry. WFRD outperforms 67.80% of its industry peers.
A Current Ratio of 2.04 indicates that WFRD has no problem at all paying its short term obligations.

Exploring NASDAQ:WFRD's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:WFRD has achieved a 4 out of 10:

The Earnings Per Share has grown by an impressive 28.99% over the past year.
WFRD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
The Earnings Per Share is expected to grow by 9.84% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of WFRD for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.