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 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.
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.
In the past 5 years WFRD always reported a positive cash flow from operatings.
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.
Looking at the Return On Equity, with a value of 34.76%, WFRD belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
WFRD has a better Return On Invested Capital (21.38%) than 98.41% 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 8.44%.
The last Return On Invested Capital (21.38%) for WFRD is above the 3 year average (18.48%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.79%, WFRD is doing good in the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Profit Margin of WFRD has declined.
With a decent Operating Margin value of 17.09%, WFRD is doing good in the industry, outperforming 77.78% of the companies in the same industry.
WFRD's Operating Margin has improved in the last couple of years.
The Gross Margin of WFRD (33.81%) is better than 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.
The number of shares outstanding for WFRD remains at a similar level compared to 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 2.28 indicates that WFRD is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, WFRD is in the better half of the industry, outperforming 66.67% 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 | 2.28 |
ROIC/WACC2.17
WACC9.86%
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 has a Current ratio of 2.08. This is in the better half of the industry: WFRD outperforms 61.90% of its industry peers.
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.
WFRD's Quick ratio of 1.52 is in line compared to the rest of the industry. WFRD outperforms 49.21% of its industry peers.
| 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.
WFRD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
The Revenue has been growing slightly by 1.12% on average over the past years.
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-26.47%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.47, the valuation of WFRD can be described as reasonable.
85.71% of the companies in the same industry are more expensive than WFRD, based on the Price/Earnings ratio.
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 8.22, which indicates a very decent valuation of WFRD.
Based on the Price/Forward Earnings ratio, WFRD is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WFRD to the average of the S&P500 Index (21.74), we can say WFRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 8.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFRD is valued cheaply inside the industry as 82.54% 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 | 7.9 | ||
| EV/EBITDA | 3.71 |
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.54, WFRD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, WFRD is paying slightly less dividend.
| 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%
52.94
-1.21 (-2.23%)
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 Cap3.84B
Analysts81.54
Price Target71.4 (34.87%)
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 | 8.47 | ||
| Fwd PE | 8.22 | ||
| P/S | 0.72 | ||
| P/FCF | 7.9 | ||
| P/OCF | 4.78 | ||
| P/B | 2.84 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 3.71 |
EPS(TTM)6.25
EY11.81%
EPS(NY)6.44
Fwd EY12.17%
FCF(TTM)6.7
FCFY12.65%
OCF(TTM)11.07
OCFY20.9%
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 | 2.28 |
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