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:
- Compared to its price level of one year ago, WFT is down 19.91% to its most recent closing price of 11.75. 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 ($0.97 versus $0.34).
- Despite its growing revenue, the company underperformed as compared with the industry average of 24.5%. Since the same quarter one year prior, revenues rose by 23.8%.
- Net operating cash flow has decreased to $158.00 million or 40.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. Weatherford International has a market cap of $8.74 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are down 21.4% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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