Weatherford International Ltd Stock Hold Recommendation Reiterated (WFT)
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- WFT's revenue growth has slightly outpaced the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $705.00 million or 20.35% when compared to the same quarter last year. Despite an increase in cash flow, WEATHERFORD INTERNATIONAL's average is still marginally south of the industry average growth rate of 28.40%.
- WFT's debt-to-equity ratio of 0.98 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.73 is weak.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, WEATHERFORD INTERNATIONAL's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for WEATHERFORD INTERNATIONAL is currently lower than what is desirable, coming in at 29.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.00% is significantly below that of the industry average.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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