Weatherford International Plc Stock Beneish M Score

WFRD Stock  USD 85.32  2.89  3.51%   
This module uses fundamental data of Weatherford International to approximate the value of its Beneish M Score. Weatherford International M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Weatherford International Piotroski F Score and Weatherford International Altman Z Score analysis.
  
At present, Weatherford International's Long Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Net Debt To EBITDA is expected to grow to 1.01, whereas Short Term Debt is forecasted to decline to about 203.3 M. At present, Weatherford International's Book Value Per Share is projected to slightly grow based on the last few years of reporting. The current year's Free Cash Flow Yield is expected to grow to 0.09, whereas Dividend Yield is forecasted to decline to 0.
At this time, Weatherford International's M Score is unavailable. The earnings manipulation may begin if Weatherford International's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Weatherford International executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Weatherford International's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.83
Beneish M Score - Unavailable
Elasticity of Receivables

1.0

Focus
Asset Quality

2.12

Focus
Expense Coverage

0.6

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

0.6

Focus
Depreciation Resistance

1.13

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

0.58

Focus

Weatherford International Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Weatherford International's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.1 B1.2 B
Notably Down
Slightly volatile
Total Revenue4.9 B5.1 B
Notably Down
Slightly volatile
Total Assets7.8 B5.1 B
Way Up
Slightly volatile
Total Current AssetsB3.3 B
Moderately Down
Slightly volatile
Non Current Assets Total1.6 B1.7 B
Notably Down
Slightly volatile
Property Plant Equipment1.4 B826.2 M
Way Up
Slightly volatile
Depreciation And Amortization468 M327 M
Way Up
Slightly volatile
Selling General Administrative455.1 M802 M
Way Down
Very volatile
Total Current Liabilities1.6 B1.9 B
Fairly Down
Slightly volatile
Non Current Liabilities Total3.2 B2.3 B
Significantly Up
Slightly volatile
Short Term Debt203.3 M214 M
Notably Down
Slightly volatile
Long Term DebtB1.7 B
Way Up
Slightly volatile
Long Term Investments49.6 M55.8 M
Fairly Down
Slightly volatile
Gross Profit Margin0.360.3389
Notably Up
Slightly volatile

Weatherford International Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Weatherford International's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Weatherford International in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Weatherford International's degree of accounting gimmicks and manipulations.

About Weatherford International Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

467.96 Million

At present, Weatherford International's Depreciation And Amortization is projected to decrease significantly based on the last few years of reporting.

Weatherford International Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Weatherford International. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables1.2B826M825M989M1.2B1.1B
Total Revenue5.0B3.7B3.6B4.3B5.1B4.9B
Total Assets7.3B5.4B4.8B4.7B5.1B7.8B
Total Current Assets3.5B3.2B2.9B3.0B3.3B3.0B
Net Debt1.5B1.7B1.7B1.5B1.1B1.0B
Short Term Debt92M84M71M89M214M203.3M
Long Term Debt2.2B2.6B2.4B2.2B1.7B3.0B
Operating Income(46M)(1.5B)(83M)317M820M861M

Weatherford International ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Weatherford International's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Weatherford International's managers, analysts, and investors.
Environmental
Governance
Social

About Weatherford International Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Weatherford International PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Weatherford International using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Weatherford International PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Weatherford International is a strong investment it is important to analyze Weatherford International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Weatherford International's future performance. For an informed investment choice regarding Weatherford Stock, refer to the following important reports:
Check out Weatherford International Piotroski F Score and Weatherford International Altman Z Score analysis.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Weatherford International. If investors know Weatherford will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Weatherford International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.242
Dividend Share
0.25
Earnings Share
7.15
Revenue Per Share
75.912
Quarterly Revenue Growth
0.073
The market value of Weatherford International is measured differently than its book value, which is the value of Weatherford that is recorded on the company's balance sheet. Investors also form their own opinion of Weatherford International's value that differs from its market value or its book value, called intrinsic value, which is Weatherford International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Weatherford International's market value can be influenced by many factors that don't directly affect Weatherford International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Weatherford International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Weatherford International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Weatherford International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.