Weatherford International Return On Equity vs. Profit Margin
WFRD Stock | USD 85.32 2.89 3.51% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.4512987 | Current Value 0.47 | Quarterly Volatility 1.4744569 |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.36 | 0.3389 |
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For Weatherford International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Weatherford International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Weatherford International PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Weatherford International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Weatherford International PLC over time as well as its relative position and ranking within its peers.
Weatherford |
Weatherford International's Revenue Breakdown by Earning Segment
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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.
Weatherford International Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Weatherford International's current stock value. Our valuation model uses many indicators to compare Weatherford International value to that of its competitors to determine the firm's financial worth. Weatherford International PLC is rated second in return on equity category among its peers. It is rated fifth in profit margin category among its peers fabricating about 0.18 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Weatherford International PLC is roughly 5.60 . At present, Weatherford International's Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Weatherford International by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Weatherford Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Weatherford International |
| = | 0.54 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Weatherford International |
| = | 0.1 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Weatherford Profit Margin Comparison
Weatherford International is currently under evaluation in profit margin category among its peers.
Weatherford International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Weatherford International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Weatherford International will eventually generate negative long term returns. The profitability progress is the general direction of Weatherford International's change in net profit over the period of time. It can combine multiple indicators of Weatherford International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last Reported | Projected for Next Year | ||
Accumulated Other Comprehensive Income | -28 M | -29.4 M | |
Operating Income | 820 M | 861 M | |
Income Before Tax | 506 M | 531.3 M | |
Total Other Income Expense Net | -314 M | -298.3 M | |
Net Income | 449 M | 471.4 M | |
Income Tax Expense | -57 M | -54.1 M | |
Net Interest Income | -131 M | -137.6 M | |
Net Income From Continuing Ops | 378 M | 396.9 M | |
Net Income Applicable To Common Shares | 29.9 M | 31.4 M | |
Non Operating Income Net Other | -109.2 M | -114.7 M | |
Interest Income | 59 M | 49.5 M | |
Change To Netincome | 26.1 M | 24.8 M | |
Net Income Per Share | 5.79 | 6.08 | |
Income Quality | 1.85 | 1.95 | |
Net Income Per E B T | 0.82 | 0.66 |
Weatherford Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Weatherford International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Weatherford International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Weatherford International's important profitability drivers and their relationship over time.
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Check out Your Current Watchlist. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
To fully project Weatherford International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Weatherford International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Weatherford International's income statement, its balance sheet, and the statement of cash flows.