Weatherford International plc
Weatherford International plc Fundamental Analysis
Weatherford International plc (WFRD) shows moderate financial fundamentals with a PE ratio of 17.30, profit margin of 8.76%, and ROE of 28.18%. The company generates $4.9B in annual revenue with moderate year-over-year growth of 7.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WFRD's fundamental strength across five key dimensions:
Efficiency Score
WeakWFRD struggles to generate sufficient returns from assets.
Valuation Score
ModerateWFRD shows balanced valuation metrics.
Growth Score
ExcellentWFRD delivers strong and consistent growth momentum.
Financial Health Score
ModerateWFRD shows balanced financial health with some risks.
Profitability Score
ModerateWFRD maintains healthy but balanced margins.
Key Financial Metrics
Is WFRD Expensive or Cheap?
P/E Ratio
WFRD trades at 17.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WFRD's PEG of 2.54 indicates potential overvaluation.
Price to Book
The market values Weatherford International plc at 4.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.95 times EBITDA. This is generally considered low.
How Well Does WFRD Make Money?
Net Profit Margin
For every $100 in sales, Weatherford International plc keeps $8.76 as profit after all expenses.
Operating Margin
Core operations generate 15.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.18 in profit for every $100 of shareholder equity.
ROA
Weatherford International plc generates $8.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Weatherford International plc produces operating cash flow of $675.34M, showing steady but balanced cash generation.
Free Cash Flow
Weatherford International plc produces free cash flow of $449.56M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.27 in free cash annually.
FCF Yield
WFRD converts 6.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How WFRD Stacks Against Its Sector Peers
| Metric | WFRD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.30 | 20.19 | Better (Cheaper) |
| ROE | 28.18% | 1019.00% | Weak |
| Net Margin | 8.76% | -44017.00% (disorted) | Weak |
| Debt/Equity | 1.03 | -0.65 (disorted) | Distorted |
| Current Ratio | 2.19 | 4.60 | Strong Liquidity |
| ROA | 8.29% | -11655350.00% (disorted) | Weak |
WFRD outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Weatherford International plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.71%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
-86.75%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
201.67%
Industry Style: Cyclical, Value, Commodity
High Growth