tiprankstipranks
Trending News
More News >
Weatherford International (WFRD)
NASDAQ:WFRD
Advertisement

Weatherford International (WFRD) AI Stock Analysis

Compare
1,128 Followers

Top Page

WFRD

Weatherford International

(NASDAQ:WFRD)

Rating:76Outperform
Price Target:
$66.00
â–²(16.07%Upside)
Weatherford International's overall stock score is driven by strong financial performance, supported by solid cash flows and profitability. The stock is well-valued with attractive P/E and dividend yield, though technical indicators suggest caution due to potential resistance. Challenges highlighted in the earnings call, especially in specific regions, temper the outlook, but recent corporate events indicate strategic alignment and shareholder confidence.
Positive Factors
Financial Performance
Weatherford's 2Q Adjusted Free Cash Flow of $79 million beat the consensus estimate of $67 million, indicating better cash generation than expected.
Valuation
Valuation on updated estimates remains compelling in both absolute and relative terms to its larger peers.
Negative Factors
Guidance Challenges
The company's 1Q adjusted EBITDA guidance is below consensus, suggesting a challenging start to the year.
Regional 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.

Weatherford International (WFRD) vs. SPDR S&P 500 ETF (SPY)

Weatherford International Business Overview & Revenue Model

Company DescriptionWeatherford 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 MoneyWeatherford International generates revenue primarily through its comprehensive range of oilfield services and products. The company's key revenue streams include well construction services such as drilling services, liner systems, and cementation products. Additionally, Weatherford offers well completion services, including packer systems, safety valves, and multi-stage fracturing systems. Production optimization services, which involve artificial lift systems and production software, also contribute significantly to the company's earnings. Weatherford collaborates with major oil and gas companies, providing tailored solutions that enhance the efficiency and productivity of their operations. The company's earnings are influenced by factors such as global oil prices, exploration and production activities, and technological advancements in the energy sector.

Weatherford International Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 2.03%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
Weatherford demonstrated resilience by achieving sequential growth in key regions and securing notable contracts. However, the company faced challenges with revenue declines in North America and Latin America, alongside market softness and pricing pressures. The market outlook remains uncertain, with potential continued softness into 2026.
Q2-2025 Updates
Positive Updates
Strong Performance Amid Market Headwinds
Despite significant market headwinds and the impact of divestitures in Argentina, Weatherford delivered strong performance, with significant achievements in the Middle East and North Africa regions.
Sequential Growth in Key Regions
Weatherford achieved sequential growth in the Kingdom of Saudi Arabia and noted noteworthy performances in the Middle East and North Africa, underscoring long-term growth opportunities.
Notable Contracts Secured
Weatherford secured high-impact contracts across key regions, including a 1-year contract with bp in the U.K. and a 3-year contract with Shell in the Gulf of America.
Shareholder Returns
Weatherford paid four quarterly dividends of $0.25 per share and repurchased approximately $186 million worth of shares over the past four quarters.
Strong Balance Sheet
Weatherford's net leverage ratio is less than 0.5x, with approximately $1 billion of cash and restricted cash, and liquidity at approximately $1.3 billion.
Negative Updates
Market Softness and Pricing Pressures
Weatherford faced market softness in Saudi Arabia, with anticipated further declines. Rising pricing pressures and margin dilution from tariff cost pass-throughs were noted.
Revenue Declines in North America and Latin America
North America and Latin America experienced sequential revenue declines, with Mexico expected to be down approximately 60% for the year.
Uncertain Market Outlook
The international market has softened and could continue to do so into 2026, with increased caution and slowdown in customer spending.
Minimal Payments from Mexico
Weatherford reported minimal collections from Mexico in the quarter, impacting cash flows.
Company Guidance
During the Weatherford International Second Quarter 2025 Results call, the company outlined several key metrics and guidance for the remainder of the year. The adjusted EBITDA margin for Q2 was reported at 21.1%, a slight decline from Q1. The adjusted free cash flow was $79 million, with a free cash flow conversion rate improving from 26.1% in Q1 to 31.1% in Q2. The company has maintained a net leverage ratio of less than 0.5x and has $1 billion in cash and $1.3 billion in liquidity. Weatherford has paid four quarterly dividends of $0.25 per share and repurchased approximately $186 million worth of shares over the past four quarters. For 2025, the company expects revenues between $4.7 billion and $4.9 billion and adjusted EBITDA between $1.015 billion and $1.06 billion. The company anticipates a revenue decline in North America by high single digits year-on-year, and international revenues are expected to decline by low double to mid-double digits. Adjusted EBITDA for Q3 is projected to be between $245 million and $265 million, with margins expected to tick up slightly.

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
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.51B5.13B4.33B3.65B3.69B
Gross Profit1.91B1.74B1.31B929.00M878.00M
EBITDA1.24B1.01B697.00M357.00M-1.06B
Net Income506.00M417.00M26.00M-450.00M-1.92B
Balance Sheet
Total Assets5.16B5.07B4.72B4.77B5.43B
Cash, Cash Equivalents and Short-Term Investments916.00M958.00M910.00M951.00M1.12B
Total Debt1.79B2.06B2.41B2.62B2.86B
Total Liabilities3.88B4.15B4.17B4.28B4.50B
Stockholders Equity1.28B924.00M535.00M472.00M907.00M
Cash Flow
Free Cash Flow493.00M623.00M217.00M237.00M56.00M
Operating Cash Flow792.00M832.00M349.00M322.00M210.00M
Investing Cash Flow-293.00M-289.00M-54.00M-83.00M-75.00M
Financing Cash Flow-511.00M-514.00M-248.00M-403.00M348.00M

Weatherford International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price56.86
Price Trends
50DMA
50.89
Positive
100DMA
49.38
Positive
200DMA
62.43
Negative
Market Momentum
MACD
1.66
Negative
RSI
59.09
Neutral
STOCH
74.05
Neutral
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 56.86 is above the 20-day moving average (MA) of 54.78, above the 50-day MA of 50.89, and below the 200-day MA of 62.43, indicating a neutral trend. The MACD of 1.66 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WFRD.

Weatherford International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$15.74B17.7829.27%0.55%12.15%91.88%
76
Outperform
$4.16B8.9035.14%1.76%-5.35%-4.15%
76
Outperform
$19.27B10.2818.16%3.03%-4.08%-29.26%
75
Outperform
$45.07B14.9618.32%1.91%2.13%54.69%
74
Outperform
$52.89B12.0719.78%3.16%0.94%-4.63%
74
Outperform
$5.15B9.149.29%3.65%0.54%-39.88%
67
Neutral
$15.27B9.946.24%5.21%4.47%-70.67%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WFRD
Weatherford International
56.86
-56.58
-49.88%
BKR
Baker Hughes Company
46.05
8.45
22.47%
FTI
TechnipFMC
36.45
7.31
25.09%
HAL
Halliburton
22.45
-10.54
-31.95%
NOV
NOV
13.97
-5.10
-26.74%
SLB
Schlumberger
35.47
-11.06
-23.77%

Weatherford International Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Weatherford International Shareholders Approve Key Resolutions
Positive
Jun 13, 2025

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.

The most recent analyst rating on (WFRD) stock is a Buy with a $158.00 price target. To see the full list of analyst forecasts on Weatherford International stock, see the WFRD Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025