NEW YORK (TheStreet) -- Weatherford International (WFT - Get Report) dipped Monday after the oilfield services company announced its shareholders had approved a move from Switzerland to Ireland due to Swiss corporate pay laws.
The company said it expects to delist from the Swiss stock exchange on Thursday. Weatherford said in an SEC filing in February that new Swiss laws could affect the company's "ability to attract and retain executives."
Last year, Swiss voters proposed to give shareholders the right to have a binding vote on all payments for company executives and directors. The proposal also forbade one-time bonuses for senior managers, which they occasionally receive upon joining or departing a company.
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The stock was down 2.45% to $21.86 at 10:35 a.m. Separately, TheStreet Ratings team rates WEATHERFORD INTERNATIONAL as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate WEATHERFORD INTERNATIONAL (WFT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, WFT's share price has jumped by 63.61%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- WEATHERFORD INTERNATIONAL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WEATHERFORD INTERNATIONAL continued to lose money by earning -$0.44 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus -$0.44).
- WFT, with its decline in revenue, underperformed when compared the industry average of 11.2%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.18 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, WFT maintains a poor quick ratio of 0.70, which illustrates the inability to avoid short-term cash problems.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 286.4% when compared to the same quarter one year ago, falling from $22.00 million to -$41.00 million.
- You can view the full analysis from the report here: WFT Ratings Report
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