NOV INC (NOV) Stock Fundamental Analysis
NYSE:NOV - New York Stock Exchange, Inc. - US62955J1034 - Common Stock - Currency: USD
NOV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. NOV has an average financial health and profitability rating. NOV is not valued too expensively and it also shows a decent growth rate.
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 in line with its industry peers.
NOV has a Return On Equity (7.24%) which is comparable to the rest of the industry.
The Return On Invested Capital of NOV (6.10%) is comparable to the rest of the industry.
NOV had an Average Return On Invested Capital over the past 3 years of 5.23%. This is below the industry average of 7.98%.
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 of 5.36%. This is comparable to the rest of the industry: NOV outperforms 50.82% of its industry peers.
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's Gross Margin of 21.37% is on the low side compared to the rest of the industry. NOV is outperformed by 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOV is destroying value.
Compared to 1 year ago, NOV has less shares outstanding
Compared to 5 years ago, NOV has less shares outstanding
The debt/assets ratio for NOV is higher compared to a year ago.
2.2 Solvency
NOV has an Altman-Z score of 1.85. 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 (1.85) which is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 2.20, NOV is doing good in the industry, outperforming 75.41% 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 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.73
WACC8.37%
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 has a better Current ratio (2.58) than 80.33% of its industry peers.
NOV has a Quick Ratio of 1.72. This is a normal value and indicates that NOV is financially healthy and should not expect problems in meeting its short term obligations.
NOV's Quick ratio of 1.72 is fine compared to the rest of the industry. NOV outperforms 68.85% 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%.
NOV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.89% yearly.
The Revenue has decreased by -1.22% in the past year.
Measured over the past years, NOV shows a small growth in Revenue. The Revenue has been growing by 0.91% on average per year.
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 small growth in Earnings Per Share. The EPS will grow by 1.65% on average per year.
Based on estimates for the next years, NOV will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y-27.31%
EPS Next 2Y-8.39%
EPS Next 3Y-2.32%
EPS Next 5Y1.65%
Revenue Next Year-3.3%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.76%
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 reasonably with a Price/Earnings ratio of 10.11.
83.61% of the companies in the same industry are more expensive than NOV, based on the Price/Earnings ratio.
NOV is valuated cheaply when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.13, which indicates a very decent valuation of NOV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOV indicates a rather cheap valuation: NOV is cheaper than 83.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.78, NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA ratio is in line with the industry average.
93.44% 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 | 5.04 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
NOV's earnings are expected to decrease with -2.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-8.39%
EPS Next 3Y-2.32%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
NOV's Dividend Yield is a higher than the industry average which is at 3.82.
NOV's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of NOV is nicely growing with an annual growth rate of 6.81%!
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.
The dividend of NOV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.98%
EPS Next 2Y-8.39%
EPS Next 3Y-2.32%
12.34
+0.19 (+1.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.54%
Inst Owner Change0.27%
Ins Owners0.74%
Ins Owner Change16.27%
Market Cap4.58B
Analysts71.54
Price Target16.16 (30.96%)
Short Float %8.04%
Short Ratio7.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)-1.91%
PT rev (3m)-3.7%
EPS NQ rev (1m)-7.41%
EPS NQ rev (3m)-23.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.78%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-4.06%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.13 | ||
| P/S | 0.52 | ||
| P/FCF | 5.04 | ||
| P/OCF | 3.59 | ||
| P/B | 0.7 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)1.22
EY9.89%
EPS(NY)1.35
Fwd EY10.95%
FCF(TTM)2.45
FCFY19.84%
OCF(TTM)3.44
OCFY27.84%
SpS23.67
BVpS17.51
TBVpS11.81
PEG (NY)N/A
PEG (5Y)0.25
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 | 1.85 |
F-Score5
WACC8.37%
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)-15.28%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-49.12%
EPS Next Y-27.31%
EPS Next 2Y-8.39%
EPS Next 3Y-2.32%
EPS Next 5Y1.65%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-1.26%
Revenue Next Year-3.3%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.76%
EBIT growth 1Y-11.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.02%
EBIT Next 3Y9.16%
EBIT Next 5Y7.91%
FCF growth 1Y287.04%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y659.65%
OCF growth 3Y64.86%
OCF growth 5Y12.8%