WEATHERFORD INTERNATIONAL PL (NASDAQ:WFRD) has caught the attention of our stock screener as a great value stock. NASDAQ:WFRD excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.
A Closer Look at Valuation for NASDAQ:WFRD
ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:WFRD, the assigned 8 reflects its valuation:
- WFRD is valuated reasonably with a Price/Earnings ratio of 9.56.
- Based on the Price/Earnings ratio, WFRD is valued cheaper than 86.44% of the companies in the same industry.
- WFRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
- The Price/Forward Earnings ratio is 9.25, which indicates a very decent valuation of WFRD.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WFRD indicates a rather cheap valuation: WFRD is cheaper than 84.75% of the companies listed in the same industry.
- WFRD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFRD indicates a rather cheap valuation: WFRD is cheaper than 81.36% of the companies listed in the same industry.
- WFRD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WFRD is cheaper than 77.97% of the companies 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.
- WFRD has a very decent profitability rating, which may justify a higher PE ratio.
Assessing Profitability for NASDAQ:WFRD
ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:WFRD has earned a 7 out of 10:
- The Return On Assets of WFRD (10.29%) is better than 81.36% of its industry peers.
- Looking at the Return On Equity, with a value of 39.70%, WFRD belongs to the top of the industry, outperforming 91.53% of the companies in the same industry.
- The Return On Invested Capital of WFRD (17.21%) is better than 96.61% of its industry peers.
- 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 Profit Margin of 9.65%. This is in the better half of the industry: WFRD outperforms 67.80% of its industry peers.
- WFRD has a Operating Margin of 17.42%. This is in the better half of the industry: WFRD outperforms 79.66% of its industry peers.
- WFRD's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 35.11%, WFRD is in the better half of the industry, outperforming 67.80% of the companies in the same industry.
- In the last couple of years the Gross Margin of WFRD has grown nicely.
What does the Health looks like 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:
- Looking at the Altman-Z score, with a value of 2.43, WFRD is in the better half of the industry, outperforming 66.10% of the companies in the same industry.
- WFRD has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as WFRD would need 2.53 years to pay back of all of its debts.
- WFRD has a Debt to FCF ratio of 2.53. This is in the better half of the industry: WFRD outperforms 64.41% of its industry peers.
- WFRD has a Current Ratio of 2.04. This indicates that WFRD is financially healthy and has no problem in meeting its short term obligations.
Growth Assessment of NASDAQ:WFRD
ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:WFRD was assigned a score of 4 for growth:
- The Earnings Per Share has grown by an impressive 28.99% over the past year.
- The Revenue has grown by 11.08% in the past year. This is quite good.
- 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.
Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.
For an up to date full fundamental analysis you can check the fundamental report of WFRD
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.