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 62 industry peers in the Energy Equipment & Services industry. While WFRD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WFRD is cheap, but on the other hand it scores bad on growth. With these ratings, WFRD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
WFRD had positive earnings in the past year.
WFRD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WFRD reported negative net income in multiple 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 88.71% of its industry peers.
WFRD has a better Return On Equity (34.76%) than 95.16% of its industry peers.
WFRD has a Return On Invested Capital of 21.38%. This is amongst the best in the industry. WFRD outperforms 98.39% of its industry peers.
WFRD had an Average Return On Invested Capital over the past 3 years of 18.48%. This is significantly above the industry average of 8.42%.
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
Looking at the Profit Margin, with a value of 8.79%, WFRD is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
WFRD's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 17.09%, WFRD is doing good in the industry, outperforming 77.42% 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 66.13% 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.
Compared to 1 year ago, WFRD has about the same amount of shares outstanding.
The number of shares outstanding for WFRD has been increased compared to 5 years ago.
WFRD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.29 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 2.29, WFRD is doing good in the industry, outperforming 69.35% 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 comparable to the rest of the industry.
WFRD has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.17, WFRD is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 2.29 |
ROIC/WACC2.17
WACC9.84%
2.3 Liquidity
WFRD has a Current Ratio of 2.08. This indicates that WFRD is financially healthy and has no problem in meeting its short term obligations.
WFRD's Current ratio of 2.08 is fine compared to the rest of the industry. WFRD outperforms 62.90% of its industry peers.
A Quick Ratio of 1.52 indicates that WFRD should not have too much problems paying its short term obligations.
WFRD has a Quick ratio of 1.52. This is comparable to the rest of the industry: WFRD outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for WFRD have decreased strongly by -10.20% in the last year.
WFRD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.50% yearly.
The Revenue has been growing slightly by 0.77% in the past year.
WFRD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.12% yearly.
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.
The Revenue is expected to grow by 0.12% on average over the next years.
EPS Next Y-26.72%
EPS Next 2Y-2.42%
EPS Next 3Y2.84%
EPS Next 5Y2.63%
Revenue Next Year-14.71%
Revenue Next 2Y-6.4%
Revenue Next 3Y-3.52%
Revenue Next 5Y0.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 8.57, the valuation of WFRD can be described as reasonable.
Based on the Price/Earnings ratio, WFRD is valued cheaply inside the industry as 85.48% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.50. WFRD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.37, which indicates a very decent valuation of WFRD.
Based on the Price/Forward Earnings ratio, WFRD is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WFRD to the average of the S&P500 Index (36.44), we can say WFRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFRD is valued a bit cheaper than 79.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WFRD is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8 | ||
| EV/EBITDA | 3.75 |
4.3 Compensation for Growth
The excellent profitability rating of WFRD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.42%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
WFRD has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
WFRD's Dividend Yield is a higher than the industry average which is at 3.52.
WFRD's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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-2.42%
EPS Next 3Y2.84%
53.57
-0.13 (-0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change0%
Ins Owners2.02%
Ins Owner Change22.46%
Market Cap3.89B
Analysts81.54
Price Target71.4 (33.28%)
Short Float %4.5%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)-4.48%
PT rev (3m)-21.47%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-21.88%
EPS NY rev (1m)-2.56%
EPS NY rev (3m)-22.46%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-8.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.37 | ||
| P/S | 0.73 | ||
| P/FCF | 8 | ||
| P/OCF | 4.84 | ||
| P/B | 2.88 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 3.75 |
EPS(TTM)6.25
EY11.67%
EPS(NY)6.4
Fwd EY11.94%
FCF(TTM)6.7
FCFY12.5%
OCF(TTM)11.07
OCFY20.66%
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 | 2.29 |
F-Score7
WACC9.84%
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-26.72%
EPS Next 2Y-2.42%
EPS Next 3Y2.84%
EPS Next 5Y2.63%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y14.79%
Revenue growth 5Y1.12%
Sales Q2Q%-12.15%
Revenue Next Year-14.71%
Revenue Next 2Y-6.4%
Revenue Next 3Y-3.52%
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