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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Weatherford International Public Limited Company (XNAS:WFRD) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
WFRD
Name:
WEATHERFORD INTERNATIONAL PUBLIC LIMITED COMPANY (XNAS:WFRD)
Sector:
- 84000.00K
Industry:
Oil & Gas Equipment & Services
CEO:
Total Employees:
17,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -73.85% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF WEATHERFORD INTERNATIONAL PUBLIC LIMITED COMPANY(WFRD) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND OIL & GAS EQUIPMENT & SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
29.5
One Month Price Target:
$55.64
Six Month Price Target :
$186.34
Likely Price in One Year's Time:
Ticker:
$343.19
Likely Trading Range Today Under (Normal Volatility)
$29.25
Price Upper limit ($) :
$29.89
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$25.67
This week:
$20.95
This month :
$12.39
Other Primary facts
Market Cap:
2.00B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
70.55M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
66.17%
-46.77%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$47.24
$39.02
$11.76
$19.98
Medium risk (<10%) entry points
Buy Call
Sell Call
$36.34
Buy Put:
Sell Put:
$34.59
$22.63
$24.41
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
WFRD
Sharpe Ratio:
3.49%
Comparison:
WFRD, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 130.73% higher than the industry
& ratio is 52.95% higher than the market/S&P 500 average
Average Returns/Yield of
WFRD
Daily returns:
0.23%
Weekly returns:
1.16%
Monthly returns:
4.66%
Yearly returns:
19.19%
Comparison of returns:
Average annual returns/yield (last 3 years) is 191.35% above industry average
Classification:
WFRD, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.41
Statistical test of Returns:
WFRD has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
6.43%
Weekly Volatility:
14.37%
Monthly Volatility:
28.75%
Yearly Volatility:
99.58%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
-
-
Value at Risk Analysis (VaR)
Daily VaR:
-12.97%
Weekly VaR:
-29.00%
Monthly VaR:
-58.00%
How Much Can the price of
WFRD
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-49%
Worst case (decline):
>85%
This translates to price declining to:
$15.16
This translates to price declining to:
$4.43
Severe Crash Probability
Risk of crash in next 6/12 months: Negligible
What is Value at Risk (VaR)?
Risk Fundamentals
WFRD is a 309.33% riskier investment compared to the market/S&P 500 & is 250.67% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 49.83% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
WFRD
Beta in relation to market/S&P 500--158.24
Expected beta in 1 year's time:
52.956
Expected beta in 3 year's time:
74.891
Unlevered (debt free) Beta:
18.028
Beta in relation to Nasdaq (XNAS):
0.315
Beta in relation to all global stocks::
0.224
Beta Comparison & Analysis
Beta of competitors/peers::
-
-
Average Industry Beta:
23.957
Beta is 560.49% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
-10.312
Alpha is 596.40% above industry average alpha yield
Alpha is -65640% below the market average
Analysis of Cost of Capital of
WFRD
Equity cost of capital:
10.871
Equity cost of capital is 549.94% above industry mean WACC
Unlevered (without debt) cost of capital:
123.85%
Before-tax cost of debt:
9.10%
After-tax cost of debt:
7.19%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
7.19%
WACC is 436.25% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$53.17
Revenue growth rate per share of (3Y):
4.89
Annual revenue growth rate is 661.05% above the industry average
EPS:
-$5.91
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$1.33
-
-
Debt per share
$36.09
EBITDA per share
$4.69
Valuation Analysis Today of
WFRD
P/E Ratio:
0.42
P/E Ratio of Competitors/Peers:
-
- & is -98.33% lower than the industry
-
WFRD is -119.64% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.55
Price to sales ratio is -63.56% below the industry mean
P/B (Price to book value ratio):
4.89
Price to free cash flow: 22.26
Price to free cash flow ratio is -64.78% lower than the industry
Net income growth rate (3Y):
128.01%
Net income growth rate is 53.06% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
597.65%
Net debt to equity ratio:
416.43%
Debt to assets ratio:
54.36%
Net debt to assets ratio:
37.87%
Debt-to-asset ratio is -1.74% below industry average
Ability to repay debt:
Interest coverage ratio:
1.39
Interest coverage ratio is -53.87% less than industry average
Looking forward:
Debt growth rate:
-2.61%
Annual debt growth is -103% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.16%
Analysis of Key Statistics
Correlation of price movement with the market:
0.11
Statistical significance of correlation:
WFRD has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.416
Stock price is -73.55% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.416
Correlation of price movement with Nasdaq (^IXIC):
0.068
Covariance of price movement with the market:
0.254
Kurtosis
21.187
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
1.016
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
WFRD
Gross Profit Margin Ratio:
105%
Operating Profit Margin Ratio:
3.92%
Operating profit margin is -258.29% lower than the industry
Net Profit Margin Ratio:
105%
Effective Tax Rate:
-30.13%
Effective tax rate is -164.33% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-97.18%
Return on equity (ROE) is 171.61% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-8.84%
Return on assets (ROA) is 92.14% higher than the industry
Financial Leverage:
2.2x
Current Ratio:
2.22
Current ratio is -4.01% below industry average
Cash Conversion Cycle (days):
53.7
Cash conversion cycle is -16.33% below industry average
The remaining useful life of property plant & equipment is: 5.0 years
Stock based compensation to net income ratio:
-1.69%
In-depth Efficiency Analysis
Revenue generated per employee:
220.6K
Each employee generates -17% less revenue than industry average revenue per employee
EBITDA generated per employee:
19.5K
Each employee generates -44% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 24.4K
Each employee generates -572% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 4.9K
Each employee generates 12% more free cash flow than industry average revenue per employee
Assets/Capital per employee
105.6K
Each employee generates 12% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -12.37%
Growth rate in R&D investment/expenditure is -79.74% lower than the industry
Competitors/Peer firms of
WFRD
-
-
-
-
-
-
-
-
-
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
3.75B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.76B
989.00M
85.00M
- 20000.00K
728.00M
-
-
813.00M
-
238.00M
416.00M
331.00M
147.00M
- 414000.00K
- 302000.00K
91.00M
- 414000.00K
Statement of Cash Flow
Date:
Period:
87.00M
Differed Income Tax :
3.00M
Stock Based Compensation :
7.00M
Change in Working Capital :
- 75000.00K
Accounts Receivables:
- 51000.00K
Other Working Capital:
1.59B
Other Non-Cash Items:
- 6000.00K
Net Cash Provided by Operating Activities:
- 64000.00K
Investments in PP&E:
- 20000.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
841.00M
-
841.00M
868.00M
684.00M
496.00M
2.89B
1.08B
-
619.00M
-
-
93.00M
1.80B
-
4.68B
385.00M
69.00M
140.00M
-
846.00M
1.30B
2.55B
412.00M
2.96B
-
4.26B
-
- 2477000.00K
- 35000.0K
2.94B
March 31, 2022 at 6:00:00 AM
3.61B
426.00M
4.68B
-
2.62B
1.8B
-
29.00M
9.00M
- 4000.00K
-
-
-
- 1000.00K
- 5000.00K
3.00M
- 57000.00K
1.06B
1.11B
- 64000.00K
- 20000.00K
- 84000.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
WFRD
2023
2024
2025
2026
2027
$321.11
$3,735.69
$43,459.25
$505,584.36
$5,881,728.96