Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we find that we feel that the company's cash flow from its operations has been weak overall.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 23.8%.
- Compared to its price level of one year ago, WFT is down 18.05% to its most recent closing price of 12.72. Looking ahead, our view is that this company's fundamentals will not have much impact either way, allowing the stock to generally move up or down based on the push and pull of the broad market.
- WEATHERFORD INTERNATIONAL has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, WEATHERFORD INTERNATIONAL turned its bottom line around by earning $0.34 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $0.34).
- Net operating cash flow has decreased to $158.00 million or 40.12% when compared to the same quarter last year. Despite a decrease in cash flow WEATHERFORD INTERNATIONAL is still fairing well by exceeding its industry average cash flow growth rate of -50.79%.
Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. The company has a P/E ratio of 28.3, above the average energy industry P/E ratio of 23.1 and above the S&P 500 P/E ratio of 17.7. Weatherford International has a market cap of $9.67 billion and is part of the
industry. Shares are down 12.8% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.