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 ( TheStreet) -- Weatherford International (NYSE: WFT) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
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- WFT's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 13.3%. 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 significantly increased by 56.77% to $231.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.88%.
- WEATHERFORD INTERNATIONAL's earnings per share declined by 43.8% in the most recent quarter compared to 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 turned its bottom line around by earning $0.25 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.25).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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 30.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.83% significantly trails the industry average.
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