WEATHERFORD INTERNATIONAL PL (WFRD) Stock Fundamental Analysis
NASDAQ:WFRD - Nasdaq - IE00BLNN3691 - Common Stock - Currency: USD
WFRD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. WFRD has an excellent profitability rating, but there are some minor concerns on its financial health. WFRD is valued quite cheap, but it does not seem to be growing. These ratings could make WFRD a good candidate for value investing.
1. Profitability
1.1 Basic Checks
WFRD had positive earnings in the past year.
In the past year WFRD had a positive cash flow from operations.
In multiple years WFRD reported negative net income over the last 5 years.
Each year in the past 5 years WFRD had a positive operating cash flow.
1.2 Ratios
WFRD has a Return On Assets of 9.30%. This is amongst the best in the industry. WFRD outperforms 88.89% of its industry peers.
WFRD's Return On Equity of 34.76% is amongst the best of the industry. WFRD outperforms 95.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.38%, WFRD belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
WFRD had an Average Return On Invested Capital over the past 3 years of 18.48%. This is significantly above the industry average of 8.44%.
The 3 year average ROIC (18.48%) for WFRD is below the current ROIC(21.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.3% | ||
| ROE | 34.76% | ||
| ROIC | 21.38% |
ROA(3y)6.2%
ROA(5y)-5.24%
ROE(3y)29.79%
ROE(5y)-43.55%
ROIC(3y)18.48%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of WFRD (8.79%) is better than 68.25% of its industry peers.
In the last couple of years the Profit Margin of WFRD has declined.
Looking at the Operating Margin, with a value of 17.09%, WFRD is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of WFRD has grown nicely.
WFRD's Gross Margin of 33.81% is fine compared to the rest of the industry. WFRD outperforms 65.08% of its industry peers.
WFRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 8.79% | ||
| GM | 33.81% |
OM growth 3Y83.71%
OM growth 5Y67.65%
PM growth 3YN/A
PM growth 5Y-33.33%
GM growth 3Y10.74%
GM growth 5Y9.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WFRD is creating value.
WFRD has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WFRD has been increased compared to 5 years ago.
Compared to 1 year ago, WFRD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.30 indicates that WFRD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.30, WFRD is doing good in the industry, outperforming 65.08% of the companies in the same industry.
WFRD has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as WFRD would need 3.30 years to pay back of all of its debts.
WFRD has a Debt to FCF ratio (3.30) which is in line with its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that WFRD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.17, WFRD is doing worse than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 2.3 |
ROIC/WACC2.17
WACC9.86%
2.3 Liquidity
A Current Ratio of 2.08 indicates that WFRD has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.08, WFRD is doing good in the industry, outperforming 61.90% of the companies in the same industry.
WFRD has a Quick Ratio of 1.52. This is a normal value and indicates that WFRD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.52, WFRD is in line with its industry, outperforming 49.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
WFRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.20%.
Measured over the past years, WFRD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -33.50% on average per year.
The Revenue has been growing slightly by 0.77% in the past year.
Measured over the past years, WFRD shows a small growth in Revenue. The Revenue has been growing by 1.12% on average per year.
EPS 1Y (TTM)-10.2%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-31.33%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-12.15%
3.2 Future
Based on estimates for the next years, WFRD will show a small growth in Earnings Per Share. The EPS will grow by 2.63% on average per year.
Based on estimates for the next years, WFRD will show a small growth in Revenue. The Revenue will grow by 0.12% on average per year.
EPS Next Y-26.47%
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
EPS Next 5Y2.63%
Revenue Next Year-14.66%
Revenue Next 2Y-6.34%
Revenue Next 3Y-3.51%
Revenue Next 5Y0.12%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WFRD is valuated reasonably with a Price/Earnings ratio of 8.66.
Based on the Price/Earnings ratio, WFRD is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
WFRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 8.41, the valuation of WFRD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WFRD is valued cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. WFRD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFRD is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WFRD is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
WFRD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
5. Dividend
5.1 Amount
WFRD has a Yearly Dividend Yield of 1.85%.
Compared to an average industry Dividend Yield of 3.60, WFRD pays a bit more dividend than its industry peers.
WFRD's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
WFRD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
11.49% of the earnings are spent on dividend by WFRD. This is a low number and sustainable payout ratio.
DP11.49%
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
54.15
-1.17 (-2.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change-68.11%
Ins Owners2.02%
Ins Owner Change22.46%
Market Cap3.93B
Analysts81.54
Price Target71.4 (31.86%)
Short Float %4.4%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP11.49%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.75%
Min EPS beat(2)13.49%
Max EPS beat(2)18.02%
EPS beat(4)3
Avg EPS beat(4)10.76%
Min EPS beat(4)-6.5%
Max EPS beat(4)18.03%
EPS beat(8)7
Avg EPS beat(8)22.45%
EPS beat(12)10
Avg EPS beat(12)30.97%
EPS beat(16)12
Avg EPS beat(16)9.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)-1.65%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)0.05%
Revenue beat(16)6
Avg Revenue beat(16)0.03%
PT rev (1m)-8.07%
PT rev (3m)-21.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.36%
EPS NY rev (1m)-2.24%
EPS NY rev (3m)-22.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.9%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-9.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.73 | ||
| P/FCF | 8.08 | ||
| P/OCF | 4.89 | ||
| P/B | 2.91 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)6.25
EY11.54%
EPS(NY)6.44
Fwd EY11.89%
FCF(TTM)6.7
FCFY12.37%
OCF(TTM)11.07
OCFY20.44%
SpS73.7
BVpS18.63
TBVpS14.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.3% | ||
| ROE | 34.76% | ||
| ROCE | 26.21% | ||
| ROIC | 21.38% | ||
| ROICexc | 28.52% | ||
| ROICexgc | 32.43% | ||
| OM | 17.09% | ||
| PM (TTM) | 8.79% | ||
| GM | 33.81% | ||
| FCFM | 9.09% |
ROA(3y)6.2%
ROA(5y)-5.24%
ROE(3y)29.79%
ROE(5y)-43.55%
ROIC(3y)18.48%
ROIC(5y)N/A
ROICexc(3y)22.89%
ROICexc(5y)N/A
ROICexgc(3y)27.08%
ROICexgc(5y)N/A
ROCE(3y)22.65%
ROCE(5y)N/A
ROICexcg growth 3Y76.31%
ROICexcg growth 5Y74.75%
ROICexc growth 3Y88.94%
ROICexc growth 5Y82.49%
OM growth 3Y83.71%
OM growth 5Y67.65%
PM growth 3YN/A
PM growth 5Y-33.33%
GM growth 3Y10.74%
GM growth 5Y9.36%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 3.3 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 99.06% | ||
| Cap/Sales | 5.93% | ||
| Interest Coverage | 6.22 | ||
| Cash Conversion | 65.07% | ||
| Profit Quality | 103.4% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 2.3 |
F-Score7
WACC9.86%
ROIC/WACC2.17
Cap/Depr(3y)62.97%
Cap/Depr(5y)47.93%
Cap/Sales(3y)4.18%
Cap/Sales(5y)3.83%
Profit Quality(3y)360.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.2%
EPS 3YN/A
EPS 5Y-33.5%
EPS Q2Q%-31.33%
EPS Next Y-26.47%
EPS Next 2Y-2.1%
EPS Next 3Y2.74%
EPS Next 5Y2.63%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-12.15%
Revenue Next Year-14.66%
Revenue Next 2Y-6.34%
Revenue Next 3Y-3.51%
Revenue Next 5Y0.12%
EBIT growth 1Y5.18%
EBIT growth 3Y110.88%
EBIT growth 5Y69.52%
EBIT Next Year4.34%
EBIT Next 3Y5.54%
EBIT Next 5Y2.92%
FCF growth 1Y51.4%
FCF growth 3Y27.65%
FCF growth 5YN/A
OCF growth 1Y61.57%
OCF growth 3Y34.99%
OCF growth 5YN/A