NOV INC (NOV)
US62955J1034 - Common Stock
Overall NOV gets a fundamental rating of 5 out of 10. We evaluated NOV against 65 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 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.
Of the past 5 years NOV 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.79%, NOV belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
With a decent Return On Equity value of 16.10%, NOV is doing good in the industry, outperforming 70.77% of the companies in the same industry.
The Return On Invested Capital of NOV (4.79%) is worse than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 16.1% | ||
| ROIC | 4.79% |
ROA(3y)2.57%
ROA(5y)-12.85%
ROE(3y)4.71%
ROE(5y)-22.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of NOV (11.57%) is better than 80.00% of its industry peers.
NOV has a Operating Margin (7.58%) which is in line with its industry peers.
NOV's Operating Margin has improved in the last couple of years.
NOV's Gross Margin of 21.36% is on the low side compared to the rest of the industry. NOV is outperformed by 63.08% of its industry peers.
NOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 11.57% | ||
| GM | 21.36% |
OM growth 3YN/A
OM growth 5Y24.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y44.17%
GM growth 5Y4.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOV is destroying value.
NOV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOV has more shares outstanding
NOV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.04 indicates that NOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NOV (2.04) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.31 indicates that NOV is not too dependend on debt financing.
NOV has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.04 |
ROIC/WACC0.61
WACC7.91%
2.3 Liquidity
A Current Ratio of 2.40 indicates that NOV has no problem at all paying its short term obligations.
NOV has a Current ratio of 2.40. This is in the better half of the industry: NOV outperforms 69.23% of its industry peers.
A Quick Ratio of 1.51 indicates that NOV should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.51, NOV perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 132.73% 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 62.19% on average per year.
NOV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.60%.
Measured over the past years, NOV shows a small growth in Revenue. The Revenue has been growing by 0.31% on average per year.
EPS 1Y (TTM)132.73%
EPS 3Y62.19%
EPS 5YN/A
EPS growth Q2Q7.69%
Revenue 1Y (TTM)18.6%
Revenue growth 3Y12.12%
Revenue growth 5Y0.31%
Revenue growth Q2Q13.02%
3.2 Future
Based on estimates for the next years, NOV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.34% on average per year.
Based on estimates for the next years, NOV will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y19.11%
EPS Next 2Y20.35%
EPS Next 3Y19.77%
EPS Next 5Y13.34%
Revenue Next Year7.42%
Revenue Next 2Y6.9%
Revenue Next 3Y6.1%
Revenue Next 5Y5.99%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
NOV is valuated correctly with a Price/Earnings ratio of 14.71.
Based on the Price/Earnings ratio, NOV is valued a bit cheaper than 67.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of NOV to the average of the S&P500 Index (25.25), we can say NOV is valued slightly cheaper.
NOV is valuated correctly with a Price/Forward Earnings ratio of 12.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 63.08% of the companies listed in the same industry.
NOV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
NOV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NOV's earnings are expected to grow with 19.77% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y20.35%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.08%.
Compared to an average industry Dividend Yield of 3.28, NOV pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.08, NOV pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of NOV has a limited annual growth rate of 0.16%.
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 last 3 years.
Dividend Growth(5Y)0.16%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
NOV pays out 7.96% of its income as dividend. This is a sustainable payout ratio.
NOV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.96%
EPS Next 2Y20.35%
EPS Next 3Y19.77%
NOV INC
NYSE:NOV (4/24/2024, 7:19:34 PM)
After market: 18.83 0 (0%)18.83
-0.03 (-0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Dividend Growth(5Y)
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Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 12.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 16.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.58% | ||
| PM (TTM) | 11.57% | ||
| GM | 21.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)132.73%
EPS 3Y62.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.6%
Revenue growth 3Y12.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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