Weatherford International (WFRD) Valuation After TotalEnergies Offshore Contract Win
Contract win with TotalEnergies refocuses attention on Weatherford International stock
Weatherford International (WFRD) is back in focus after securing a multi-year Integrated Completions contract with TotalEnergies in Denmark, tying the stock story more closely to offshore activity and long-term client demand.
See our latest analysis for Weatherford International.
The contract news lands at a time when momentum in Weatherford International’s share price has been strong, with a 30-day share price return of 25.21% and a 90-day share price return of 49.85%. The one year total shareholder return of 50.34% and five year total shareholder return of around 7x reflect how longer term holders have fared.
If this offshore contract has you thinking about where else growth stories could emerge, it may be worth scanning our list of 24 power grid technology and infrastructure stocks as another way to spot potential opportunities tied to energy infrastructure trends.
With the shares up sharply in recent months and trading close to the average analyst price target, the question now is whether Weatherford International still offers mispriced upside or whether the market is already factoring in future growth.
Most Popular Narrative: 25.2% Overvalued
Weatherford International’s most followed narrative puts fair value at $83.73, which sits well below the last close of $104.85, framing a clear valuation gap for investors to weigh.
Ongoing company transformation shifting from legacy, low-margin businesses (recent divestitures in Argentina and slimming down unprofitable offerings) toward higher-margin, technology-enabled services, digitalization, and integrated projects should drive both net-margin expansion and earnings resilience through the cycle.
Want to see what kind of revenue path and margin reset need to play out for that fair value to hold up? The narrative focuses on steadier profitability, gradual earnings growth and a future earnings multiple that sits below many peers. Curious how those moving parts combine to justify a price well under where the stock trades today?
Result: Fair Value of $83.73 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to weigh softer international activity and ongoing pricing pressure, as these factors could challenge the margin and earnings path built into this narrative.
Find out about the key risks to this Weatherford International narrative.
Another View: Market Ratio Sends A Different Signal
Here is the twist. While the narrative-based fair value suggests Weatherford International looks 25.2% overvalued at $104.85 versus $83.73, the current P/E of 17.4x sits well below both peers at 31.1x and the US Energy Services industry at 25.3x, and only slightly above a fair ratio of 17.2x. Is the market underpricing quality here, or is the earnings bar simply set high?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With mixed signals on valuation and sentiment running both cautious and optimistic, it makes sense to look at the full picture yourself and act decisively. You can quickly weigh the trade off between potential upside and the key watchpoints by checking the 2 key rewards and 1 important warning sign.
Looking for more investment ideas?
If this Weatherford story has sharpened your focus, do not stop here. Broaden your watchlist with ideas that match the kind of portfolio you want to build.
- Target value first and look for companies that our screener flags as 53 high quality undervalued stocks based on their fundamentals and current pricing.
- Prioritise resilience and review a curated set of 80 resilient stocks with low risk scores if you want potential ideas with lower risk scores at the core of your portfolio.
- Spot early standouts by reviewing our screener containing 23 high quality undiscovered gems, where we surface lesser known names with financial profiles that might warrant a closer look.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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