📊 AI Stock Rating — Summary

Weatherford International (WFRD) reported revenue of $1.23 billion and a net income of $191 million for the quarter ending September 2025, leading to an EPS of $1.13. The net margin stood at approximately 15.5%, showcasing strong profitability. With free cash flow at $138 million, the company demonstrates considerable cash generation strength. Revenue has shown modest growth over the year, while the net income has been more volatile due to fluctuations in operating performance. The balance sheet reveals a healthy financial position with a net debt of $495 million against substantial equity of $1.567 billion, indicating strong financial resilience and a notable reduction in net debt over the year. The company maintains shareholder returns with quarterly dividends of $0.25 per share and consistent, but limited, stock buybacks. Analyst price targets ranging up to $82 suggest potential for further valuation appreciation. WFRD has experienced price appreciation over the last year, enhancing shareholder returns despite a relatively high P/E ratio, which may reflect optimistic market expectations for future growth.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue growth has been modest, increasing from $1.19 billion to $1.23 billion over the recent quarters. This growth suggests a stable operational performance, but the absence of significant revenue drivers limits a higher score.

Profitability — Score: 8/10

The company has maintained strong profitability with a net margin averaging 10-15% across quarters and EPS growth showcasing operational efficiency. Despite some fluctuations, overall profitability remains robust and above industry standards.

Cash Flow Quality — Score: 7/10

Free cash flow has been consistent, with significant operating cash generation and limited capital expenditure. Dividend payments are stable, and a portion of cash flow is allocated to stock buybacks, improving liquidity deployment.

Leverage & Balance Sheet — Score: 8/10

With a reduced net debt of $495 million and significant equity, Weatherford shows a strong balance sheet and improving leverage. This financial resilience supports long-term sustainability and growth potential.

Shareholder Returns — Score: 9/10

The 1-year stock price has increased significantly, contributing to excellent shareholder returns. Regular dividends enhance income for investors, while price appreciation has been a key driver of overall return.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets up to $82 indicate potential upside. Current valuation seems optimistic given the high P/E ratio, yet reflects market confidence in Weatherford's strategic initiatives and growth potential.

⚠ AI-generated — informational only, not financial advice.