Weatherford International (WFRD) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: 1.44%
• Average Volume (3M): 838.08K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.50
• Revenue Growth: -5.35%
• EPS Growth: -4.15%
• Country: US
• Employees: 18,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.87
• Shares Outstanding: 71,835,000
• 10 Day Avg. Volume: 859,778
• 30 Day Avg. Volume: 838,082
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 4.30
• 1Y Price Target: $76.00
• Price Target Upside: 9.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $63.00 ▼(-9.50% Downside)

Weatherford International's solid financial performance and attractive valuation are key strengths, but mixed earnings call sentiment and technical indicators suggest caution. Corporate events provide additional support for strategic initiatives.

Positive Factors

Strong Balance Sheet

A strong balance sheet with high liquidity and low leverage enhances financial stability, enabling strategic investments and resilience against market fluctuations.

Successful Capital Return Program

Consistent capital return through dividends and share buybacks indicates strong cash flow management and commitment to shareholder value, supporting long-term investor confidence.

New High-Impact Contracts

Securing long-term contracts with major clients like bp and Shell strengthens market position and ensures stable revenue streams, supporting future growth.

Negative Factors

Revenue Declines in Key Markets

Significant revenue declines in key markets like North America and Mexico can impact overall financial performance, challenging growth and profitability.

Market Softness in Saudi Arabia

Market softness in Saudi Arabia, a key region, can limit growth opportunities and affect revenue, requiring strategic adjustments to maintain competitiveness.

Challenges with Tariffs

Tariff challenges can erode margins and reduce demand, impacting profitability and necessitating cost management strategies to mitigate financial pressure.

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 multiple key streams, primarily focusing on the provision of oilfield services and technologies. The company's revenue model is built around service contracts and project-based work with oil and gas companies, where it charges for its expertise in drilling, completion, and production services. A significant portion of its earnings comes from its advanced technologies, which are essential for maximizing production and minimizing operational costs for clients. Additionally, Weatherford has entered into strategic partnerships and alliances with other industry players to enhance its service offerings and expand its market reach. Factors such as fluctuating oil prices, demand for energy, and technological advancements in oilfield services also play a crucial role in influencing its revenue generation.

Weatherford International Financial Statement Overview

Summary

Weatherford International shows strong financial recovery with robust profitability and revenue growth. The income statement and cash flow metrics are solid, though there are concerns about slowing revenue growth and moderate financial leverage.

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	5.15B	5.51B	5.13B	4.33B	3.65B	3.69B
Gross Profit	1.29B	1.91B	1.74B	1.31B	929.00M	878.00M
EBITDA	1.02B	1.24B	1.01B	697.00M	357.00M	-1.06B
Net Income	481.00M	506.00M	417.00M	26.00M	-450.00M	-1.92B
Balance Sheet
Total Assets	0.00	5.16B	5.07B	4.72B	4.77B	5.43B
Cash, Cash Equivalents and Short-Term Investments	1.00B	916.00M	958.00M	910.00M	951.00M	1.12B
Total Debt	1.59B	1.79B	2.06B	2.41B	2.62B	2.86B
Total Liabilities	0.00	3.88B	4.15B	4.17B	4.28B	4.50B
Stockholders Equity	1.52B	1.28B	924.00M	535.00M	472.00M	907.00M
Cash Flow
Free Cash Flow	472.00M	493.00M	623.00M	217.00M	237.00M	56.00M
Operating Cash Flow	781.00M	792.00M	832.00M	349.00M	322.00M	210.00M
Investing Cash Flow	-214.00M	-293.00M	-289.00M	-54.00M	-83.00M	-75.00M
Financing Cash Flow	-452.00M	-511.00M	-514.00M	-248.00M	-403.00M	348.00M

Weatherford International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFRD, the sentiment is Positive. The current price of 69.61 is above the 20-day moving average (MA) of 64.20, above the 50-day MA of 60.04, and above the 200-day MA of 57.08, indicating a bullish trend. The MACD of 2.28 indicates Negative momentum. The RSI at 70.53 is Negative, neither overbought nor oversold. The STOCH value of 83.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WFRD.

Weatherford International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	81 Outperform	16.59B	18.91	28.83%	0.50%	12.15%	91.88%
BKR	78 Outperform	49.81B	16.39	17.22%	1.78%	2.13%	54.69%
HAL	77 Outperform	21.41B	11.54	17.72%	2.71%	-4.08%	-29.26%
WFRD	74 Outperform	$5.00B	10.47	35.14%	1.44%	-5.35%	-4.15%
SLB	73 Outperform	53.05B	11.85	20.16%	3.18%	0.94%	-4.63%
NOV	70 Outperform	5.01B	10.97	7.18%	3.78%	-1.21%	-54.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Weatherford International Corporate Events

Weatherford International Shareholders Approve Key Resolutions

On June 11, 2025, Weatherford International held its Annual Meeting where shareholders approved several key resolutions. These included the election of six directors for a one-year term, the ratification of KPMG LLP as the company’s auditor, and the approval of the Fourth Amended and Restated 2019 Equity Incentive Plan to increase the number of ordinary shares by 1,286,000. The shareholders also granted the Board of Directors the authority to issue shares and opt-out of statutory preemption rights under Irish law, reflecting strong shareholder support for the company’s strategic initiatives.