This Oil Services Stock Can Gain 50%+

An overlooked story creates an attractive opportunity.

💡 Highlights

• Oilfield services provider Weatherford International (WFRD) has transformed from bankruptcy to a disciplined industry leader, yet trades at just 4.8x EBITDA - a steep discount to peers.

• Originally founded in 1941, it grew through aggressive M&A but suffered from poor integration and high debt, leading to its eventual Chapter 11 filing when oil prices collapsed.

• Under CEO Grish Saligram, the company has achieved dramatic margin improvement from below 10% in 2017 to approximately 25% currently. The improvement stems from better integration of historical acquisitions and operational discipline - not just industry tailwinds.

• More than 80% of revenue comes from outside the U.S., with strong relationships with state-owned oil companies like Petrobras and Saudi Aramco. This international focus could be advantageous given a strong outlook for offshore drilling.

• $350M in free cash flow generated just this year equates to 6% of market cap and opens the door to return cash to shareholders. Management has initiated a dividend program and a $500M share repurchase plan (representing over 8% of shares outstanding).

• While investors remain skeptical due to its troubled history, WFRD has clearly broken free from its past under new leadership. We see potential for 50%+ upside through reasonable assumptions of multiple expansion and earnings growth. Let’s take a deeper look…