NOV INC (NOV) Stock Fundamental Analysis
NYSE:NOV - New York Stock Exchange, Inc. - US62955J1034 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NOV. NOV was compared to 63 industry peers in the Energy Equipment & Services industry. NOV has an average financial health and profitability rating. NOV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NOV had positive earnings in the past year.
NOV had a positive operating cash flow in the past year.
In multiple years NOV reported negative net income over the last 5 years.
NOV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NOV has a Return On Assets of 5.22%. This is comparable to the rest of the industry: NOV outperforms 57.14% of its industry peers.
NOV's Return On Equity of 9.15% is in line compared to the rest of the industry. NOV outperforms 58.73% of its industry peers.
The Return On Invested Capital of NOV (7.39%) 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 8.51%.
The last Return On Invested Capital (7.39%) for NOV is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.15% | ||
| ROIC | 7.39% |
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's Profit Margin of 6.68% is in line compared to the rest of the industry. NOV outperforms 58.73% of its industry peers.
With a Operating Margin value of 9.97%, NOV perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
NOV has a worse Gross Margin (22.76%) than 63.49% of its industry peers.
NOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.97% | ||
| PM (TTM) | 6.68% | ||
| GM | 22.76% |
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.
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 1.92. 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.
Looking at the Altman-Z score, with a value of 1.92, NOV is in line with its industry, outperforming 58.73% of the companies in the same industry.
The Debt to FCF ratio of NOV is 1.75, which is an excellent value as it means it would take NOV, only 1.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOV (1.75) is better than 79.37% 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.
Looking at the Debt to Equity ratio, with a value of 0.30, NOV is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.87
WACC8.46%
2.3 Liquidity
A Current Ratio of 2.65 indicates that NOV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.65, NOV is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that NOV should not have too much problems paying its short term obligations.
NOV has a Quick ratio of 1.76. This is in the better half of the industry: NOV outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.05% over the past year.
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.
Looking at the last year, NOV shows a small growth in Revenue. The Revenue has grown by 0.48% in the last 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)19.05%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-36.67%
Revenue 1Y (TTM)0.48%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-2.41%
3.2 Future
Based on estimates for the next years, NOV will show a decrease in Earnings Per Share. The EPS will decrease by -9.74% on average per year.
NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.53% yearly.
EPS Next Y-25.49%
EPS Next 2Y-6.56%
EPS Next 3Y-3.03%
EPS Next 5Y-9.74%
Revenue Next Year-2.56%
Revenue Next 2Y-0.77%
Revenue Next 3Y0%
Revenue Next 5Y2.53%
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
With a Price/Earnings ratio of 8.19, the valuation of NOV can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NOV indicates a rather cheap valuation: NOV is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, NOV is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.74, the valuation of NOV can be described as very reasonable.
76.19% of the companies in the same industry are more expensive than NOV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOV is cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOV indicates a rather cheap valuation: NOV is cheaper than 92.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.01 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as NOV's earnings are expected to decrease with -3.03% in the coming years.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-6.56%
EPS Next 3Y-3.03%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.44%.
NOV's Dividend Yield is a higher than the industry average which is at 3.82.
Compared to an average S&P500 Dividend Yield of 2.38, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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.
NOV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.81%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
19.69% of the earnings are spent on dividend by NOV. This is a low number and sustainable payout ratio.
DP19.69%
EPS Next 2Y-6.56%
EPS Next 3Y-3.03%
12.28
+0.03 (+0.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.82%
Inst Owner Change-2.81%
Ins Owners0.6%
Ins Owner Change15.62%
Market Cap4.61B
Analysts71.11
Price Target16.78 (36.64%)
Short Float %7.02%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.28
Dividend Growth(5Y)6.81%
DP19.69%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.82%
Min EPS beat(2)-25.76%
Max EPS beat(2)10.12%
EPS beat(4)2
Avg EPS beat(4)9.41%
Min EPS beat(4)-25.76%
Max EPS beat(4)63.22%
EPS beat(8)4
Avg EPS beat(8)3.51%
EPS beat(12)7
Avg EPS beat(12)41.26%
EPS beat(16)9
Avg EPS beat(16)28.61%
Revenue beat(2)1
Avg Revenue beat(2)0.55%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)1.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)1.94%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)1.28%
Revenue beat(16)11
Avg Revenue beat(16)0.85%
PT rev (1m)-8.61%
PT rev (3m)-13.83%
EPS NQ rev (1m)-3.24%
EPS NQ rev (3m)-8.19%
EPS NY rev (1m)-13.67%
EPS NY rev (3m)-14.7%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-2.17%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.52 | ||
| P/FCF | 4.01 | ||
| P/OCF | 3.04 | ||
| P/B | 0.72 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 4.44 |
EPS(TTM)1.5
EY12.21%
EPS(NY)1.41
Fwd EY11.45%
FCF(TTM)3.06
FCFY24.95%
OCF(TTM)4.04
OCFY32.88%
SpS23.47
BVpS17.14
TBVpS11.48
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.15% | ||
| ROCE | 9.67% | ||
| ROIC | 7.39% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 11.57% | ||
| OM | 9.97% | ||
| PM (TTM) | 6.68% | ||
| GM | 22.76% | ||
| FCFM | 13.05% |
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-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 104.87% | ||
| Cap/Sales | 4.15% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 123.53% | ||
| Profit Quality | 195.42% | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.92 |
F-Score7
WACC8.46%
ROIC/WACC0.87
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)19.05%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-36.67%
EPS Next Y-25.49%
EPS Next 2Y-6.56%
EPS Next 3Y-3.03%
EPS Next 5Y-9.74%
Revenue 1Y (TTM)0.48%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-2.41%
Revenue Next Year-2.56%
Revenue Next 2Y-0.77%
Revenue Next 3Y0%
Revenue Next 5Y2.53%
EBIT growth 1Y27.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.33%
EBIT Next 3Y12.08%
EBIT Next 5Y10.11%
FCF growth 1Y328.83%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y645.68%
OCF growth 3Y64.86%
OCF growth 5Y12.8%