NOV INC (NOV)
US62955J1034 - Common Stock
Taking everything into account, NOV scores 5 out of 10 in our fundamental rating. NOV was compared to 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
In the past year NOV was profitable.
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 a decent Return On Assets value of 8.72%, NOV is doing good in the industry, outperforming 78.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.79%, NOV is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
NOV has a Return On Invested Capital (4.95%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 15.79% | ||
| ROIC | 4.95% |
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
NOV has a Profit Margin of 11.24%. This is in the better half of the industry: NOV outperforms 76.92% of its industry peers.
NOV has a Operating Margin (7.83%) which is comparable to the rest of the industry.
NOV's Operating Margin has improved in the last couple of years.
NOV has a worse Gross Margin (21.42%) than 63.08% of its industry peers.
NOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.83% | ||
| PM (TTM) | 11.24% | ||
| GM | 21.42% |
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.
The number of shares outstanding for NOV has been increased compared to 1 year ago.
NOV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NOV has been reduced compared to a year ago.
2.2 Solvency
NOV has an Altman-Z score of 2.08. 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 2.08 is in line compared to the rest of the industry. NOV outperforms 58.46% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that NOV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, NOV perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.08 |
ROIC/WACC0.64
WACC7.69%
2.3 Liquidity
NOV has a Current Ratio of 2.50. This indicates that NOV is financially healthy and has no problem in meeting its short term obligations.
NOV has a Current ratio of 2.50. This is in the better half of the industry: NOV outperforms 67.69% of its industry peers.
A Quick Ratio of 1.50 indicates that NOV should not have too much problems paying its short term obligations.
NOV has a Quick ratio of 1.50. This is comparable to the rest of the industry: NOV outperforms 47.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.14%, which is quite impressive.
NOV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.19% yearly.
The Revenue has grown by 18.60% in the past year. This is quite good.
NOV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.31% yearly.
EPS 1Y (TTM)37.14%
EPS 3Y62.19%
EPS 5YN/A
EPS Q2Q%46.15%
Revenue 1Y (TTM)18.6%
Revenue growth 3Y12.12%
Revenue growth 5Y0.31%
Sales Q2Q%5.88%
3.2 Future
NOV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y22.44%
EPS Next 2Y21.14%
EPS Next 3Y19.72%
EPS Next 5Y10.79%
Revenue Next Year6.63%
Revenue Next 2Y6.58%
Revenue Next 3Y5.87%
Revenue Next 5Y4.6%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 13.78.
NOV's Price/Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 75.38% of the companies in the same industry.
NOV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
NOV is valuated reasonably with a Price/Forward Earnings ratio of 10.57.
The rest of the industry has a similar Price/Forward Earnings ratio as NOV.
NOV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 10.57 |
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 | 9.01 |
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 19.72% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y21.14%
EPS Next 3Y19.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, NOV has a reasonable but not impressive dividend return.
NOV's Dividend Yield is a higher than the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.30, NOV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of NOV has a limited annual growth rate of 0.16%.
NOV has paid a dividend for at least 10 years, which is 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
8.01% of the earnings are spent on dividend by NOV. This is a low number and sustainable payout ratio.
The dividend of NOV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.01%
EPS Next 2Y21.14%
EPS Next 3Y19.72%
NOV INC
NYSE:NOV (7/26/2024, 7:04:01 PM)
After market: 19.85 0 (0%)19.85
+1.18 (+6.32%)
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 Cap7.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 10.57 | ||
| 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)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 15.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.83% | ||
| PM (TTM) | 11.24% | ||
| GM | 21.42% | ||
| 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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.5 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)37.14%
EPS 3Y62.19%
EPS 5Y
EPS Q2Q%
EPS Next Y22.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.6%
Revenue growth 3Y12.12%
Revenue growth 5Y
Sales 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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y