NOV INC (NOV) Stock Fundamental Analysis
USA - NYSE:NOV - US62955J1034 - Common Stock
12.91 USD
-0.39 (-2.93%)
13.03 USD
+0.12 (+0.93%)
Overall NOV gets a fundamental rating of 5 out of 10. We evaluated NOV against 61 industry peers in the Energy Equipment & Services industry. NOV has only an average score on both its financial health and profitability. NOV has a valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years NOV 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NOV (4.15%) is comparable to the rest of the industry.
With a Return On Equity value of 7.24%, NOV perfoms like the industry average, outperforming 52.46% of the companies in the same industry.
The Return On Invested Capital of NOV (6.10%) 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 8.01%.
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.
The Operating Margin of NOV (8.28%) is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 21.37%, NOV is doing worse than 65.57% of the companies in the same industry.
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
NOV has less shares outstanding than it did 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 1.90. 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's Altman-Z score of 1.90 is in line compared to the rest of the industry. NOV outperforms 54.10% of 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 has a Debt to FCF ratio of 2.20. This is in the better half 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 | 1.9 |
ROIC/WACC0.75
WACC8.13%
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.
The Current ratio of NOV (2.58) is better than 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.
NOV has a Quick ratio of 1.72. This is in the better half of the industry: NOV outperforms 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%.
NOV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.89% yearly.
NOV shows a decrease in Revenue. In the last year, the revenue decreased by -1.22%.
NOV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
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
NOV is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.43% yearly.
The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y-34.11%
EPS Next 2Y-14.82%
EPS Next 3Y-5.61%
EPS Next 5Y-13.43%
Revenue Next Year-2.47%
Revenue Next 2Y-1.18%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.92%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 10.58 indicates a reasonable valuation of NOV.
NOV's Price/Earnings ratio is rather cheap when compared to the industry. NOV is cheaper than 83.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of NOV to the average of the S&P500 Index (27.20), we can say NOV is valued rather cheaply.
NOV is valuated reasonably with a Price/Forward Earnings ratio of 11.05.
81.97% of the companies in the same industry are more expensive than NOV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (22.70), we can say NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NOV is valued cheaper than 93.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.27 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
NOV's earnings are expected to decrease with -5.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-14.82%
EPS Next 3Y-5.61%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.25%. 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 3.34.
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 | 2.25% |
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.
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
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%
12.91
-0.39 (-2.93%)
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 Cap4.79B
Analysts71.54
Price Target15.68 (21.46%)
Short Float %7.26%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)-2.99%
PT rev (3m)-5.72%
EPS NQ rev (1m)-5.53%
EPS NQ rev (3m)-18.3%
EPS NY rev (1m)-9.36%
EPS NY rev (3m)-11.57%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.55 | ||
| P/FCF | 5.27 | ||
| P/OCF | 3.76 | ||
| P/B | 0.74 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)1.22
EY9.45%
EPS(NY)1.17
Fwd EY9.05%
FCF(TTM)2.45
FCFY18.96%
OCF(TTM)3.44
OCFY26.62%
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 | 1.9 |
F-Score5
WACC8.13%
ROIC/WACC0.75
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-13.43%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-1.26%
Revenue Next Year-2.47%
Revenue Next 2Y-1.18%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.92%
EBIT growth 1Y-11.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.02%
EBIT Next 3Y9.16%
EBIT Next 5Y6.61%
FCF growth 1Y287.04%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y659.65%
OCF growth 3Y64.86%
OCF growth 5Y12.8%