Weatherford International (WFRD) AI Stock Analysis

• Market Cap: $3.42B
• Dividend Yield: 1.59%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.49
• Revenue Growth: 0.77%
• EPS Growth: 1.69%
• Country: US
• Employees: 18,000
• Sector: Energy
• Sector Strength: 40
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.03
• Shares Outstanding: 72,556,145
• 10 Day Avg. Volume: 1,024,974
• 30 Day Avg. Volume: 1,543,964
• PEG Ratio: -0.96
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $77.20
• Price Target Upside: 69.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: ―

Weatherford International's overall stock score reflects a solid financial foundation with strong profitability and efficient cash management. However, technical indicators reveal bearish sentiment, and the earnings call highlighted significant challenges, including revenue declines and market uncertainties. Despite these headwinds, the company's attractive valuation and strategic initiatives offer some optimism for long-term performance.

Positive Factors

Financial Performance

Weatherford International's 4Q adjusted EBITDA and free cash flow exceeded consensus expectations, indicating strong financial performance in the quarter.

Shareholder Returns

Shareholder distributions are expected to exceed $200mn or 41% of FCF, driven by an expected increase in share repurchase activity.

Valuation

Valuation on updated estimates remains compelling in both absolute and relative terms to its larger peers.

Negative Factors

EBITDA Guidance

The company's 1Q adjusted EBITDA guidance is below consensus, suggesting a challenging start to the year.

Market Exposure

Weatherford’s weakness tied to outsized Mexico exposure continues to plague near-term results as Pemex activity has declined by more than originally expected.

Revenue Forecast

With the declines intensifying beyond expectations, the revenue forecast for WFRD has been reduced by 2%.

Weatherford International Business Overview & Revenue Model

Company Description

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, 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, cementing, and coiled-tubing intervention; and drill stem test tools, 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; rotating control devices and advanced automated control systems, as well as closed-loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open hole and cased-hole logging services; and intervention and remediation services. Further, the company provides tubular handling, management, and connection services; and re-entry, fishing, wellbore cleaning, and well abandonment services, as well as patented bottom hole, tubularhandling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.

How the Company Makes Money

Weatherford International generates revenue through a diversified portfolio of products and services tailored to the needs of the oil and gas industry. The company earns money by providing drilling services, well construction, and completion solutions, which are critical for the exploration and development of oil and gas reserves. Additionally, Weatherford offers production optimization technologies and reservoir evaluation services, which help clients maximize the output and efficiency of their existing assets. Key revenue streams include service contracts, equipment sales, and maintenance agreements. Strategic partnerships and long-term contracts with major oil and gas companies also play a significant role in driving the company's earnings.

Weatherford International Financial Statement Overview

Summary

Weatherford International exhibits a solid financial recovery and operational efficiency. The income statement reflects strong profitability and growth, while the balance sheet shows improved leverage and equity strength. Cash flow metrics indicate robust cash generation capabilities, although there are signs of slowing revenue growth. Overall, the company is on a positive trajectory, with a need to ensure sustained revenue and equity growth to mitigate potential risks.

Income Statement

Weatherford International has demonstrated a strong recovery in its income statement, with a significant improvement in profitability and revenue growth. The TTM Gross Profit Margin is robust at 48.36%, and the Net Profit Margin is healthy at 8.79%. Revenue growth from 2022 to 2023 was 18.54%, showcasing a positive trend. EBIT and EBITDA Margins are also solid, indicating efficient cost management. However, the slight decline in revenue from 2024 to 2025 suggests potential challenges in maintaining growth momentum.

Balance Sheet

The balance sheet reflects a strengthening financial position, with a reduction in total debt and an increase in stockholders' equity, leading to a lower Debt-to-Equity Ratio of 1.16 in TTM. The Return on Equity for the TTM period is impressive at 34.56%, indicative of effective capital utilization. The Equity Ratio of 31.23% suggests moderate financial leverage, but the industry-standard could be higher for stability. Continued improvement in equity levels would enhance financial stability.

Cash Flow

Weatherford's cash flow shows healthy operational cash generation with an Operating Cash Flow to Net Income Ratio of 1.71 in TTM, indicating strong cash conversion. The Free Cash Flow to Net Income Ratio of 1.20 suggests solid free cash flow generation. While the Free Cash Flow Growth Rate is negative due to a decrease from the prior year, the company still maintains a positive free cash flow, which is crucial for reinvestment and debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.35B	5.51B	5.13B	4.33B	3.65B	3.69B
	Gross Profit
1.77B	1.91B	1.74B	1.31B	929.00M	878.00M
	EBIT
850.00M	938.00M	820.00M	317.00M	-83.00M	-1.55B
	EBITDA
1.08B	1.24B	1.01B	761.00M	357.00M	-1.04B
	Net Income Common Stockholders
470.00M	506.00M	417.00M	51.00M	-429.00M	-1.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
873.00M	916.00M	958.00M	910.00M	951.00M	1.12B
	Total Assets
5.05B	5.16B	5.07B	4.72B	4.77B	5.43B
	Total Debt
1.76B	1.79B	2.06B	2.41B	2.62B	2.86B
	Net Debt
886.00M	872.00M	1.10B	1.50B	1.66B	1.74B
	Total Liabilities
3.69B	3.88B	4.15B	4.17B	4.28B	4.50B
	Stockholders Equity
1.35B	1.28B	924.00M	551.00M	496.00M	937.00M
Cash Flow		Free Cash Flow
486.00M	493.00M	623.00M	217.00M	237.00M	56.00M
	Operating Cash Flow
803.00M	792.00M	832.00M	349.00M	322.00M	210.00M
	Investing Cash Flow
-318.00M	-293.00M	-289.00M	-54.00M	-83.00M	-75.00M
	Financing Cash Flow
-457.00M	-511.00M	-514.00M	-248.00M	-403.00M	348.00M

Weatherford International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFRD, the sentiment is Negative. The current price of 45.46 is above the 20-day moving average (MA) of 45.21, below the 50-day MA of 47.18, and below the 200-day MA of 72.35, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 35.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WFRD.

Weatherford International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	77 Outperform	$13.08B	16.18	27.24%	0.64%	14.26%	294.37%
BKR	74 Outperform	$36.99B	12.75	18.04%	2.30%	6.22%	62.58%
HAL	73 Outperform	$17.61B	8.58	20.99%	3.32%	-2.54%	-17.53%
SLB	72 Outperform	$47.02B	11.73	20.82%	3.21%	5.83%	-2.03%
NOV	71 Outperform	$4.72B	8.38	9.29%	2.39%	0.54%	-39.88%
WFRD	67 Neutral	$3.42B	7.50	38.48%	1.59%	0.77%	1.69%
Sector *	57 Neutral	$7.14B	3.33	-3.45%	5.75%	0.66%	-50.76%

Weatherford International Corporate Events

Weatherford International Appoints New CFO Anuj Dhruv

Weatherford International plc has announced the appointment of Anuj Dhruv as its new Executive Vice President and Chief Financial Officer, effective April 21, 2025. Mr. Dhruv, who brings over 20 years of experience in global finance and strategy, previously held leadership roles at LyondellBasell, Schlumberger, and Microsoft. His compensation package includes a base salary, participation in incentive plans, and severance benefits. Concurrently, Arunava Mitra has departed from the company, effective the same date, with entitlement to certain benefits under existing compensation plans.