OTCPK:WFTL.F

Stock Analysis Report

Weatherford International

Executive Summary

Weatherford International plc, an oilfield service company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Weatherford International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WFTL.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

WFTL.F

-6.0%

US Energy Services

7.2%

US Market


1 Year Return

n/a

WFTL.F

-72.2%

US Energy Services

-10.4%

US Market

Return vs Industry: Insufficient data to determine how WFTL.F performed against the US Energy Services industry.

Return vs Market: Insufficient data to determine how WFTL.F performed against the US Market.


Shareholder returns

WFTL.FIndustryMarket
7 Day4.3%-6.0%7.2%
30 Day-71.3%-50.5%-12.6%
90 Day-78.5%-66.5%-19.4%
1 Yearn/a-71.3%-72.2%-8.5%-10.4%
3 Yearn/a-80.1%-82.9%15.8%8.3%
5 Yearn/a-81.4%-84.8%35.8%21.0%

Price Volatility Vs. Market

How volatile is Weatherford International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Weatherford International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WFTL.F ($6) is trading below our estimate of fair value ($51.29)

Significantly Below Fair Value: WFTL.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WFTL.F is good value based on its PE Ratio (1.6x) compared to the Energy Services industry average (8.8x).

PE vs Market: WFTL.F is good value based on its PE Ratio (1.6x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WFTL.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WFTL.F is good value based on its PB Ratio (0.1x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Weatherford International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WFTL.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if WFTL.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WFTL.F's revenue (3.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WFTL.F's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WFTL.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Weatherford International performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFTL.F has a high level of non-cash earnings.

Growing Profit Margin: WFTL.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WFTL.F has become profitable over the past 5 years, growing earnings by -3% per year.

Accelerating Growth: WFTL.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WFTL.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-34.4%).


Return on Equity

High ROE: WFTL.F's Return on Equity (125.5%) is considered outstanding.


Next Steps

Financial Health

How is Weatherford International's financial position?


Financial Position Analysis

Short Term Liabilities: WFTL.F's short term assets ($3.5B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: WFTL.F's short term assets ($3.5B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: WFTL.F's debt to equity ratio (72%) is considered high.

Reducing Debt: WFTL.F's debt to equity ratio has reduced from 107.1% to 72% over the past 5 years.


Balance Sheet

Inventory Level: WFTL.F has a high level of physical assets or inventory.

Debt Coverage by Assets: WFTL.F's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WFTL.F is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: WFTL.F is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Weatherford International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WFTL.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WFTL.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WFTL.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WFTL.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WFTL.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Mark McCollum (60yo)

3s

Tenure

US$8,996,432

Compensation

Mr. Mark A. McCollum serves as Director of Westlake Chemical Corp. since May 18, 2018. He has been the Chief Executive Officer and President of Weatherford International plc since March 10, 2017. He serves ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD9.00M) is above average for companies of similar size in the US market ($USD2.12M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark McCollum
CEO, President & Director3yrsUS$9.00m0.0025% $10.5k
Karl Blanchard
Executive VP & COO2.58yrsUS$4.05m0.0010% $4.4k
Stuart Fraser
VP & Chief Accounting Officer1.83yrsUS$1.22m0.00027% $1.1k
Christina Ibrahim
Executive VPno dataUS$2.78m0.00076% $3.2k
Bernard Duroc-Danner
Chairman Emeritus and External Advisor3.25yrsUS$31.49mno data
Christian Garcia
Executive VP & CFO0.17yrno datano data
Sebastian Pellizzer
Senior Director of Investor Relationsno datano datano data
Karen David-Green
Senior VP of Stakeholder Engagement & Chief Marketing Officerno datano datano data
Ellen Chin
Senior VP & Chief Human Resource Officer2.17yrsno datano data
Edgar Chapman
President of Production7.17yrsno datano data

2.6yrs

Average Tenure

55yo

Average Age

Experienced Management: WFTL.F's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark McCollum
CEO, President & Director3yrsUS$9.00m0.0025% $10.5k
Bernard Duroc-Danner
Chairman Emeritus and External Advisor3.25yrsUS$31.49mno data
Thomas Bates
Independent Chairman of the Board0.25yrno datano data
Neal Goldman
Director0.25yrno datano data
John Glick
Director0.25yrno datano data
Jacqueline Mutschler
Director0.25yrno datano data
Gordon Hall
Director0.25yrno datano data
Charles Sledge
Director0.25yrno datano data

0.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: WFTL.F's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: WFTL.F only recently listed within the past 12 months, with total shares outstanding growing by -3.9% in the past year..


Top Shareholders

Company Information

Weatherford International plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weatherford International plc
  • Ticker: WFTL.F
  • Exchange: OTCPK
  • Founded: 1972
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$420.000m
  • Shares outstanding: 70.00m
  • Website: https://www.weatherford.com

Number of Employees


Location

  • Weatherford International plc
  • 2000 St. James Place
  • Suite 600
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WFTL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2019

Biography

Weatherford International plc, an oilfield service company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. The company operates in two segments, Western Hemisphere and Eastern Hemisphere. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing and fluid systems, cementing, and coiled-tubing intervention; and drill stem test tools, and surface well testing and multiphase flow measurement services. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs; managed pressure drilling, conventional mud-logging, drilling instrumentation, gas analysis, wellsite consultancy, and open hole and cased-hole logging services; intervention and remediation services; and reservoir solutions and software products. Further, the company provides equipment and drilling tools; tubular handling, management, and connection services; equipment rental services; and onshore contract drilling and related services through a fleet of land drilling and workover rigs. Weatherford International plc was incorporated in 1972 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 04:30
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.