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When you look at NASDAQ:WFRD, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

By Mill Chart

Last update: Jan 15, 2025

Our stock screener has singled out WEATHERFORD INTERNATIONAL PL (NASDAQ:WFRD) as a stellar value proposition. NASDAQ:WFRD not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.


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Analyzing Valuation Metrics

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:WFRD was assigned a score of 8 for valuation:

  • The Price/Earnings ratio is 9.80, which indicates a very decent valuation of WFRD.
  • Based on the Price/Earnings ratio, WFRD is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
  • WFRD is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 9.47, the valuation of WFRD can be described as very reasonable.
  • WFRD's Price/Forward Earnings ratio is rather cheap when compared to the industry. WFRD is cheaper than 84.48% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, WFRD is valued rather cheaply.
  • Based on the Enterprise Value to EBITDA ratio, WFRD is valued cheaper than 81.03% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFRD indicates a rather cheap valuation: WFRD is cheaper than 81.03% of the companies listed in the same industry.
  • The 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.

Profitability Assessment of NASDAQ:WFRD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:WFRD scores a 7 out of 10:

  • Looking at the Return On Assets, with a value of 10.29%, WFRD belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
  • WFRD's Return On Equity of 39.70% is amongst the best of the industry. WFRD outperforms 91.38% of its industry peers.
  • WFRD has a Return On Invested Capital of 17.21%. This is amongst the best in the industry. WFRD outperforms 96.55% of its industry peers.
  • The 3 year average ROIC (8.87%) for WFRD is below the current ROIC(17.21%), indicating increased profibility in the last year.
  • With a decent Profit Margin value of 9.65%, WFRD is doing good in the industry, outperforming 68.97% of the companies in the same industry.
  • With a decent Operating Margin value of 17.42%, WFRD is doing good in the industry, outperforming 79.31% of the companies in the same industry.
  • WFRD's Operating Margin has improved in the last couple of years.
  • WFRD has a Gross Margin of 35.11%. This is in the better half of the industry: WFRD outperforms 68.97% of its industry peers.
  • In the last couple of years the Gross Margin of WFRD has grown nicely.

Understanding NASDAQ:WFRD's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:WFRD has achieved a 6 out of 10:

  • With a decent Altman-Z score value of 2.45, WFRD is doing good in the industry, outperforming 67.24% 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 67.24% of its industry peers.
  • A Current Ratio of 2.04 indicates that WFRD has no problem at all paying its short term obligations.
  • WFRD has a Current ratio of 2.04. This is in the better half of the industry: WFRD outperforms 60.34% of its industry peers.

Unpacking NASDAQ:WFRD's Growth Rating

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:

  • WFRD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.99%, which is quite impressive.
  • WFRD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
  • 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.

Disclaimer

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.

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WEATHERFORD INTERNATIONAL PL

NASDAQ:WFRD (1/14/2025, 8:13:16 PM)

After market: 69.75 0 (0%)

69.75

-0.48 (-0.68%)

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