W&T Offshore, Inc. Fundamental Analysis (NYSE: WTI)
W&T Offshore, Inc. (NYSE: WTI) shows moderate financial fundamentals with a PE ratio of -9.23, profit margin of -8.44%, and ROE of 25.13%. The company generates $0.6B in annual revenue with weak year-over-year growth of -4.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WTI's fundamental strength across five key dimensions:
Efficiency Score
WeakWTI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWTI trades at attractive valuation levels.
Growth Score
WeakWTI faces weak or negative growth trends.
Financial Health Score
ExcellentWTI maintains a strong and stable balance sheet.
Profitability Score
ModerateWTI maintains healthy but balanced margins.
Key Financial Metrics
Is WTI Expensive or Cheap?
P/E Ratio
WTI trades at -9.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WTI's PEG of -0.10 indicates potential undervaluation.
Price to Book
The market values W&T Offshore, Inc. at -2.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.11 times EBITDA. This is generally considered low.
How Well Does WTI Make Money?
Net Profit Margin
For every $100 in sales, W&T Offshore, Inc. keeps $-8.44 as profit after all expenses.
Operating Margin
Core operations generate 4.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.13 in profit for every $100 of shareholder equity.
ROA
W&T Offshore, Inc. generates $-5.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
W&T Offshore, Inc. produces operating cash flow of $100.60M, showing steady but balanced cash generation.
Free Cash Flow
W&T Offshore, Inc. generates strong free cash flow of $90.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.59 in free cash annually.
FCF Yield
WTI converts 18.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-9.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How WTI Stacks Against Its Sector Peers
| Metric | WTI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -9.23 | 20.60 | Better (Cheaper) |
| ROE | 25.13% | 1363.00% | Weak |
| Net Margin | -8.44% | 1351.00% | Weak |
| Debt/Equity | -1.86 | -1.64 (disorted) | Distorted |
| Current Ratio | 1.31 | 2.16 | Neutral |
| ROA | -5.12% | 2679.00% | Weak |
WTI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews W&T Offshore, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.24%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-479.45%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-31.98%
Industry Style: Cyclical, Value, Commodity
Declining