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Weatherford International (WFRD)
NASDAQ:WFRD

Weatherford International (WFRD) AI Stock Analysis

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Weatherford International

(NASDAQ:WFRD)

Rating:75Outperform
Price Target:
$62.00
â–²(14.50%Upside)
Weatherford International's overall stock score reflects strong financial performance and strategic corporate actions, tempered by technical resistance and market uncertainties. The company's attractive valuation and shareholder support are significant positives, but caution is advised due to potential revenue challenges and market volatility.
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
Future Revenue Decline
In 2025, Latin America revenues are expected to decline by ~20% as PEMEX resets its operating budget.
Global Spending Environment
The anticipated recovery in 2Q-4Q25 appears challenging due to a weakening global upstream spending environment, particularly in key markets like Mexico and Saudi Arabia.
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.

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:Apr 22, 2025
(Q1-2025)
|
% Change Since: 21.11%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements, such as strong free cash flow and successful technology deployments, alongside significant challenges, including revenue declines in key regions and market uncertainties due to global trade tensions. The call highlighted Weatherford's strategic portfolio optimization and strong capital return program, offset by cautious outlooks and restructuring efforts.
Q1-2025 Updates
Positive Updates
Strong Free Cash Flow
Weatherford reported adjusted free cash flow of $66 million for Q1 2025, with a free cash flow conversion rate of 26.1% compared to 24.4% in Q1 2024, driven by strong collections.
Middle East and Asia Growth
Year-on-year growth in the Middle East and Asia regions demonstrated resilience and stability, contributing positively to Weatherford's performance.
Successful Technology Deployments
Weatherford achieved advancements in technology adoption, including the installation of the first OptiROSS RFID Multi-Cycle Sliding Sleeve Valve for Petrobras in Brazil and strong uptake of the ForeSite Power Regenerative variable speed drive in North America.
Portfolio Optimization
Strategic divestitures in Argentina, including the Pressure Pumping and Wireline businesses, are expected to improve portfolio quality and focus on differentiated product lines.
Capital Return Program
Weatherford has paid three quarterly dividends of $0.25 per share and repurchased approximately $152 million worth of shares over the past three quarters.
Negative Updates
Significant Revenue Decline in Key Regions
Activity levels in Mexico dropped around 60% year-over-year, North America continued its downward trend by 4% sequentially, and Europe softened due to operator cutbacks in the UK amidst an unfavorable policy environment.
Uncertain Market Outlook
The overall international market has softened, with substantial drops in Mexico and reduced U.S. land activity levels, leading to a cautious outlook due to lower commodity prices and increased global trade uncertainties.
Impact of Divestitures
The divestiture of Argentina's Pressure Pumping and Wireline businesses, while improving portfolio quality, results in revenue and EBITDA reductions in Weatherford's results.
Potential Global Trade and Tariff Impacts
Recent U.S. tariffs and retaliatory tariffs have added significant uncertainty to the market, potentially causing demand destruction in the short- to mid-term.
Headcount Reductions and Restructuring Charges
Weatherford reduced headcount by over 1,000 since Q3 2024, with additional restructuring and severance charges of $29 million in Q1 2025.
Company Guidance
In the first quarter of 2025, Weatherford International's financial guidance reflected a cautious outlook amid market uncertainties. The company reported an adjusted free cash flow of $66 million, with adjusted EBITDA margins of 21.2%, impacted by lower revenues and project startup costs. Weatherford's dividend payments totaled $0.25 per share, and the company repurchased approximately $152 million worth of shares over the past three quarters, including $53 million in Q1. The guidance for Q2 anticipates revenues between $1.165 billion and $1.195 billion, with adjusted EBITDA ranging from $245 million to $265 million. For the full year, revenues are expected to be between $4.6 billion and $5 billion, with adjusted EBITDA between $975 million and $1.1 billion. The company also plans to maintain a free cash flow conversion increase of 100 to 200 basis points year-on-year.

Weatherford International Financial Statement Overview

Summary
Weatherford International shows strong financial recovery and operational efficiency. The income statement reflects improved profitability and revenue growth, although there are signs of slowing growth. The balance sheet is strengthening, with reduced debt and increased equity. Cash flow is robust, despite a decline in free cash flow growth.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.35B5.51B5.13B4.33B3.65B3.69B
Gross Profit1.77B1.91B1.74B1.31B929.00M878.00M
EBITDA1.08B1.24B1.01B761.00M357.00M-1.04B
Net Income470.00M506.00M417.00M51.00M-429.00M-1.90B
Balance Sheet
Total Assets5.05B5.16B5.07B4.72B4.77B5.43B
Cash, Cash Equivalents and Short-Term Investments873.00M916.00M958.00M910.00M951.00M1.12B
Total Debt1.76B1.79B2.06B2.41B2.62B2.86B
Total Liabilities3.69B3.88B4.15B4.17B4.28B4.50B
Stockholders Equity1.35B1.28B924.00M551.00M496.00M937.00M
Cash Flow
Free Cash Flow486.00M493.00M623.00M217.00M237.00M56.00M
Operating Cash Flow803.00M792.00M832.00M349.00M322.00M210.00M
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-403.00M348.00M

Weatherford International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price54.15
Price Trends
50DMA
47.39
Positive
100DMA
50.95
Positive
200DMA
64.95
Negative
Market Momentum
MACD
1.39
Negative
RSI
63.18
Neutral
STOCH
87.14
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 54.15 is above the 20-day moving average (MA) of 50.74, above the 50-day MA of 47.39, and below the 200-day MA of 64.95, indicating a neutral trend. The MACD of 1.39 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.14 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FTFTI
81
Outperform
$14.63B18.4227.24%0.58%14.26%294.37%
SLSLB
77
Outperform
$48.49B12.0920.82%3.20%5.83%-2.03%
HAHAL
75
Outperform
$18.50B9.0220.99%3.16%-2.54%-17.53%
75
Outperform
$3.93B8.6138.48%1.81%0.77%1.69%
NONOV
74
Outperform
$4.91B8.729.29%2.27%0.54%-39.88%
BKBKR
70
Outperform
$39.27B13.5418.04%2.31%6.22%62.58%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WFRD
Weatherford International
54.15
-66.05
-54.95%
BKR
Baker Hughes Company
39.64
6.24
18.68%
FTI
TechnipFMC
34.90
8.91
34.28%
HAL
Halliburton
21.52
-10.82
-33.46%
NOV
NOV
13.08
-4.26
-24.57%
SLB
Schlumberger
35.65
-9.31
-20.71%

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.

Executive/Board Changes
Weatherford International Appoints New CFO Anuj Dhruv
Neutral
Apr 22, 2025

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.

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 03, 2025