NOV INC (NOV) Stock Fundamental Analysis
USA - NYSE:NOV - US62955J1034 - Common Stock
15.4 USD
+0.03 (+0.2%)
15.12 USD
-0.28 (-1.82%)
Overall NOV gets a fundamental rating of 5 out of 10. We evaluated NOV against 60 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of NOV get a neutral evaluation. Nothing too spectacular is happening here. NOV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NOV had positive earnings in the past year.
In the past year NOV had a positive cash flow from operations.
In multiple years NOV reported negative net income over the last 5 years.
Of the past 5 years NOV 4 years had a positive operating cash flow.
1.2 Ratios
NOV's Return On Assets of 3.38% is in line compared to the rest of the industry. NOV outperforms 53.33% of its industry peers.
Looking at the Return On Equity, with a value of 5.93%, NOV is in line with its industry, outperforming 51.67% of the companies in the same industry.
The Return On Invested Capital of NOV (5.95%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NOV is below the industry average of 7.82%.
The last Return On Invested Capital (5.95%) for NOV is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 5.93% | ||
| ROIC | 5.95% |
ROA(3y)5.3%
ROA(5y)-2.46%
ROE(3y)9.7%
ROE(5y)-4.94%
ROIC(3y)5.23%
ROIC(5y)N/A
1.3 Margins
NOV has a Profit Margin (4.36%) which is comparable to the rest of the industry.
NOV's Operating Margin of 8.05% is in line compared to the rest of the industry. NOV outperforms 46.67% of its industry peers.
NOV has a Gross Margin of 21.46%. This is in the lower half of the industry: NOV underperforms 63.33% of its industry peers.
NOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 4.36% | ||
| GM | 21.46% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y17.38%
GM growth 5Y17.86%
2. Health
2.1 Basic Checks
NOV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NOV has been reduced compared to 1 year ago.
Compared to 5 years ago, NOV has less shares outstanding
NOV has a worse debt/assets ratio than last year.
2.2 Solvency
NOV has an Altman-Z score of 1.98. This is not the best score and indicates that NOV is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of NOV (1.98) is comparable to the rest of the industry.
NOV has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as NOV would need 2.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.28, NOV is in the better half of the industry, outperforming 71.67% of the companies in the same industry.
NOV has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.30, NOV is doing good in the industry, outperforming 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.73
WACC8.1%
2.3 Liquidity
A Current Ratio of 2.55 indicates that NOV has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.55, NOV is doing good in the industry, outperforming 78.33% of the companies in the same industry.
NOV has a Quick Ratio of 1.71. This is a normal value and indicates that NOV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.71, NOV is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for NOV have decreased strongly by -32.43% in the last year.
The Earnings Per Share has been growing by 40.89% on average over the past years. This is a very strong growth
NOV shows a decrease in Revenue. In the last year, the revenue decreased by -1.46%.
NOV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
EPS 1Y (TTM)-32.43%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-0.68%
3.2 Future
NOV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.24% yearly.
Based on estimates for the next years, NOV will show a small growth in Revenue. The Revenue will grow by 1.66% on average per year.
EPS Next Y-39.62%
EPS Next 2Y-16.91%
EPS Next 3Y-6.1%
EPS Next 5Y-0.24%
Revenue Next Year-2.31%
Revenue Next 2Y-1.3%
Revenue Next 3Y0.18%
Revenue Next 5Y1.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NOV is valuated correctly with a Price/Earnings ratio of 15.40.
Compared to the rest of the industry, the Price/Earnings ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, NOV is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of NOV can be described as correct.
NOV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (32.68), we can say NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
91.67% of the companies in the same industry are more expensive than NOV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.52 | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
A cheap valuation may be justified as NOV's earnings are expected to decrease with -6.10% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-16.91%
EPS Next 3Y-6.1%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.03%.
NOV's Dividend Yield is a higher than the industry average which is at 2.94.
Compared to an average S&P500 Dividend Yield of 2.39, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
The dividend of NOV is nicely growing with an annual growth rate of 6.81%!
NOV has paid a dividend for at least 10 years, which is a reliable track record.
As NOV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.81%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
NOV pays out 50.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of NOV has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.13%
EPS Next 2Y-16.91%
EPS Next 3Y-6.1%
15.4
+0.03 (+0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.11%
Inst Owner Change-0.61%
Ins Owners0.74%
Ins Owner Change2.59%
Market Cap5.72B
Revenue(TTM)8.78B
Net Income(TTM)383.00M
Analysts72
Price Target15.53 (0.84%)
Short Float %7.77%
Short Ratio8.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.28
Dividend Growth(5Y)6.81%
DP50.13%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.49%
Min EPS beat(2)-56.61%
Max EPS beat(2)-2.37%
EPS beat(4)1
Avg EPS beat(4)-18.66%
Min EPS beat(4)-56.61%
Max EPS beat(4)10.12%
EPS beat(8)3
Avg EPS beat(8)-5.6%
EPS beat(12)6
Avg EPS beat(12)1.81%
EPS beat(16)8
Avg EPS beat(16)23.76%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.65%
Max Revenue beat(2)1.06%
Revenue beat(4)3
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)1.94%
Revenue beat(8)6
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.25%
PT rev (1m)-0.95%
PT rev (3m)-4.86%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-10.31%
EPS NY rev (1m)-3.27%
EPS NY rev (3m)-12.49%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 13.85 | ||
| P/S | 0.65 | ||
| P/FCF | 6.52 | ||
| P/OCF | 4.51 | ||
| P/B | 0.89 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)1
EY6.49%
EPS(NY)1.11
Fwd EY7.22%
FCF(TTM)2.36
FCFY15.34%
OCF(TTM)3.42
OCFY22.19%
SpS23.63
BVpS17.38
TBVpS11.76
PEG (NY)N/A
PEG (5Y)0.38
Graham Number19.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 5.93% | ||
| ROCE | 7.78% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 9.34% | ||
| OM | 8.05% | ||
| PM (TTM) | 4.36% | ||
| GM | 21.46% | ||
| FCFM | 9.99% |
ROA(3y)5.3%
ROA(5y)-2.46%
ROE(3y)9.7%
ROE(5y)-4.94%
ROIC(3y)5.23%
ROIC(5y)N/A
ROICexc(3y)5.95%
ROICexc(5y)N/A
ROICexgc(3y)8.17%
ROICexgc(5y)N/A
ROCE(3y)6.84%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y17.38%
GM growth 5Y17.86%
F-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.28 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 111.05% | ||
| Cap/Sales | 4.47% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 119.83% | ||
| Profit Quality | 228.98% | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.98 |
F-Score4
WACC8.1%
ROIC/WACC0.73
Cap/Depr(3y)89.05%
Cap/Depr(5y)79.41%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.43%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-66.67%
EPS Next Y-39.62%
EPS Next 2Y-16.91%
EPS Next 3Y-6.1%
EPS Next 5Y-0.24%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-0.68%
Revenue Next Year-2.31%
Revenue Next 2Y-1.3%
Revenue Next 3Y0.18%
Revenue Next 5Y1.66%
EBIT growth 1Y-14.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.55%
EBIT Next 3Y8.96%
EBIT Next 5Y7.01%
FCF growth 1Y348.44%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y1686.25%
OCF growth 3Y64.86%
OCF growth 5Y12.8%
NOV INC / NOV FAQ
What is the fundamental rating for NOV stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOV.
What is the valuation status for NOV stock?
ChartMill assigns a valuation rating of 5 / 10 to NOV INC (NOV). This can be considered as Fairly Valued.
What is the profitability of NOV stock?
NOV INC (NOV) has a profitability rating of 4 / 10.
What is the valuation of NOV INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NOV INC (NOV) is 15.4 and the Price/Book (PB) ratio is 0.89.
How financially healthy is NOV INC?
The financial health rating of NOV INC (NOV) is 6 / 10.