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 increase in stock price during the past year. 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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- Despite its growing revenue, the company underperformed as compared with the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 6.8%. 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.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, WEATHERFORD INTERNATIONAL swung to a loss, reporting -$1.02 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus -$1.02).
- The gross profit margin for WEATHERFORD INTERNATIONAL is currently lower than what is desirable, coming in at 30.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.57% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$11.00 million or 107.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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