NOV INC (NOV) Stock Fundamental Analysis
NYSE:NOV - US62955J1034 - Common Stock
12.87 USD
-0.29 (-2.2%)
13.12 USD
+0.25 (+1.94%)
Overall NOV gets a fundamental rating of 5 out of 10. We evaluated NOV against 61 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NOV was profitable.
NOV had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NOV reported negative net income in multiple years.
NOV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NOV has a Return On Assets (4.15%) which is comparable to the rest of the industry.
NOV has a Return On Equity of 7.24%. This is comparable to the rest of the industry: NOV outperforms 52.46% of its industry peers.
With a Return On Invested Capital value of 6.10%, NOV perfoms like the industry average, outperforming 52.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NOV is below the industry average of 8.01%.
The last Return On Invested Capital (6.10%) for NOV is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 7.24% | ||
| ROIC | 6.1% |
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 (5.36%) which is comparable to the rest of the industry.
NOV has a Operating Margin of 8.28%. This is comparable to the rest of the industry: NOV outperforms 44.26% of its industry peers.
NOV has a worse Gross Margin (21.37%) than 65.57% of its industry peers.
In the last couple of years the Gross Margin of NOV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.28% | ||
| PM (TTM) | 5.36% | ||
| GM | 21.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOV is destroying value.
The number of shares outstanding for NOV has been reduced compared to 1 year ago.
The number of shares outstanding for NOV has been reduced compared to 5 years ago.
Compared to 1 year ago, NOV has a worse debt to assets ratio.
2.2 Solvency
NOV has an Altman-Z score of 1.89. 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.
NOV has a Altman-Z score (1.89) which is in line with its industry peers.
The Debt to FCF ratio of NOV is 2.20, which is a good value as it means it would take NOV, 2.20 years of fcf income to pay off all of its debts.
NOV's Debt to FCF ratio of 2.20 is fine compared to the rest of the industry. NOV outperforms 72.13% of its industry peers.
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 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.72
WACC8.42%
2.3 Liquidity
NOV has a Current Ratio of 2.58. This indicates that NOV is financially healthy and has no problem in meeting its short term obligations.
NOV's Current ratio of 2.58 is fine compared to the rest of the industry. NOV outperforms 78.69% of its industry peers.
A Quick Ratio of 1.72 indicates that NOV should not have too much problems paying its short term obligations.
The Quick ratio of NOV (1.72) is better than 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
NOV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.28%.
Measured over the past years, NOV shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.89% on average per year.
NOV shows a decrease in Revenue. In the last year, the revenue decreased by -1.22%.
The Revenue has been growing slightly by 0.91% on average over the past years.
EPS 1Y (TTM)-15.28%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-49.12%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-1.26%
3.2 Future
Based on estimates for the next years, NOV will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.45% on average per year.
Based on estimates for the next years, NOV will show a small growth in Revenue. The Revenue will grow by 1.67% on average per year.
EPS Next Y-34.11%
EPS Next 2Y-14.82%
EPS Next 3Y-5.61%
EPS Next 5Y-12.45%
Revenue Next Year-2.53%
Revenue Next 2Y-1.1%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.55, which indicates a very decent valuation of NOV.
85.25% of the companies in the same industry are more expensive than NOV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.08. NOV is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.02 indicates a reasonable valuation of NOV.
Based on the Price/Forward Earnings ratio, NOV is valued cheaper than 80.33% of the companies in the same industry.
NOV is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
90.16% 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 | 5.26 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
A cheap valuation may be justified as NOV's earnings are expected to decrease with -5.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-14.82%
EPS Next 3Y-5.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, NOV has a reasonable but not impressive dividend return.
NOV's Dividend Yield is a higher than the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.34, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
On average, the dividend of NOV grows each year by 6.81%, which is quite nice.
NOV has been paying a dividend for at least 10 years, so it has 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
40.98% of the earnings are spent on dividend by NOV. This is a bit on the high side, but may be sustainable.
DP40.98%
EPS Next 2Y-14.82%
EPS Next 3Y-5.61%
12.87
-0.29 (-2.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.54%
Inst Owner Change-0.37%
Ins Owners0.74%
Ins Owner Change4.16%
Market Cap4.78B
Analysts71.54
Price Target15.84 (23.08%)
Short Float %6.57%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend0.28
Dividend Growth(5Y)6.81%
DP40.98%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.07%
Min EPS beat(2)-25.76%
Max EPS beat(2)-2.37%
EPS beat(4)1
Avg EPS beat(4)-6.99%
Min EPS beat(4)-25.76%
Max EPS beat(4)10.12%
EPS beat(8)3
Avg EPS beat(8)-0.61%
EPS beat(12)6
Avg EPS beat(12)2.21%
EPS beat(16)8
Avg EPS beat(16)23.64%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)1.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)1.94%
Revenue beat(8)6
Avg Revenue beat(8)0.61%
Revenue beat(12)8
Avg Revenue beat(12)0.99%
Revenue beat(16)11
Avg Revenue beat(16)0.8%
PT rev (1m)-2.96%
PT rev (3m)-5.62%
EPS NQ rev (1m)-13.49%
EPS NQ rev (3m)-29.59%
EPS NY rev (1m)-9.36%
EPS NY rev (3m)-11.57%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 11.02 | ||
| P/S | 0.54 | ||
| P/FCF | 5.26 | ||
| P/OCF | 3.75 | ||
| P/B | 0.73 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 5.39 |
EPS(TTM)1.22
EY9.48%
EPS(NY)1.17
Fwd EY9.08%
FCF(TTM)2.45
FCFY19.02%
OCF(TTM)3.44
OCFY26.7%
SpS23.67
BVpS17.51
TBVpS11.81
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 7.24% | ||
| ROCE | 7.98% | ||
| ROIC | 6.1% | ||
| ROICexc | 6.92% | ||
| ROICexgc | 9.39% | ||
| OM | 8.28% | ||
| PM (TTM) | 5.36% | ||
| GM | 21.37% | ||
| FCFM | 10.34% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 104.86% | ||
| Cap/Sales | 4.18% | ||
| Interest Coverage | 8.77 | ||
| Cash Conversion | 118.37% | ||
| Profit Quality | 192.99% | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 1.89 |
F-Score5
WACC8.42%
ROIC/WACC0.72
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)-15.28%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-49.12%
EPS Next Y-34.11%
EPS Next 2Y-14.82%
EPS Next 3Y-5.61%
EPS Next 5Y-12.45%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-1.26%
Revenue Next Year-2.53%
Revenue Next 2Y-1.1%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.67%
EBIT growth 1Y-11.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.02%
EBIT Next 3Y9.16%
EBIT Next 5Y6.84%
FCF growth 1Y287.04%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y659.65%
OCF growth 3Y64.86%
OCF growth 5Y12.8%