Weatherford International plc () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Archrock, Inc.

TechnipFMC plc

Cactus, Inc.

NOV, Inc.

Weatherford International plc

Helix Energy Solutions Group, Inc.

Halliburton Co.

USA Compression Partners LP

Liberty Energy, Inc.

RPC, Inc.

ProFrac Holding Corp.

Why is Weatherford International plc ?

Healthy long term growth as Operating profit has grown by an annual rate 34.48%

Flat results in Jun 25

INTEREST(9M) At USD 109 MM has Grown at 29.76%
ROCE(HY) Lowest at 35.14%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.96 times

With ROCE of 46.03%, it has a fair valuation with a 2.06 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.65%, its profits have risen by 9.8% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.65% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Weatherford International plc should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Weatherford International plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Weatherford International plc

-9.16%

-0.69

54.15%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.29%

EBIT Growth (5y)

34.48%

EBIT to Interest (avg)

3.20

Debt to EBITDA (avg)

2.30

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.80

Tax Ratio

21.44%

Dividend Payout Ratio

7.40%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

26.85%

ROE (avg)

24.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.60

EV to EBIT

4.47

EV to EBITDA

3.33

EV to Capital Employed

2.06

EV to Sales

0.79

PEG Ratio

0.73

Dividend Yield

0.52%

ROCE (Latest)

46.03%

ROE (Latest)

39.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 49.27 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 13.31%

DIVIDEND PER SHARE(HY)

Highest at USD 3.96

-13What is not working for the Company

INTEREST(9M)

At USD 109 MM has Grown at 29.76%

ROCE(HY)

Lowest at 35.14%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.96 times

OPERATING PROFIT(Q)

Lowest at USD 245 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.35 %

RAW MATERIAL COST(Y)

Grown by 11.54% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.06 times

NET SALES(Q)

Fallen at -14.31%

Here's what is working for Weatherford International plc

Debt-Equity Ratio

Lowest at 49.27 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 3.96

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 13.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Weatherford International plc

Operating Profit

Lowest at USD 245 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 20.35 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.96 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

At USD 109 MM has Grown at 29.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Fallen at -14.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 4.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales