NOV INC (NOV) Stock Fundamental Analysis
USA - NYSE:NOV - US62955J1034 - Common Stock
12.565 USD
-0.15 (-1.14%)
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 only an average score on both its financial health and profitability. NOV has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
The Return On Assets of NOV (4.15%) is better than 60.66% of its industry peers.
NOV has a Return On Equity (7.24%) which is in line with its industry peers.
With a Return On Invested Capital value of 6.10%, NOV perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
NOV had an Average Return On Invested Capital over the past 3 years of 5.23%. This is below the industry average of 8.04%.
The 3 year average ROIC (5.23%) for NOV is below the current ROIC(6.10%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 5.36%, NOV perfoms like the industry average, outperforming 47.54% of the companies in the same 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
NOV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOV has less shares outstanding than it did 1 year ago.
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 1.87. 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 (1.87) 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 72.13% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that NOV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, NOV is in the better half of 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 | 1.87 |
ROIC/WACC0.78
WACC7.79%
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 78.69% 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.
The Quick ratio of NOV (1.72) is better than 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%.
The Earnings Per Share has been growing by 40.89% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, NOV will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.43% on average per year.
NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y-34.24%
EPS Next 2Y-15.26%
EPS Next 3Y-6.4%
EPS Next 5Y-13.43%
Revenue Next Year-2.45%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.25%
Revenue Next 5Y1.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 10.30, the valuation of NOV can be described as reasonable.
Based on the Price/Earnings ratio, NOV is valued cheaper than 86.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.34. NOV is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.87, the valuation of NOV can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOV indicates a rather cheap valuation: NOV is cheaper than 81.97% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (22.86), we can say NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOV is valued a bit cheaper than 62.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOV is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.13 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
A cheap valuation may be justified as NOV's earnings are expected to decrease with -6.40% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-15.26%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.28%.
NOV's Dividend Yield is a higher than the industry average which is at 3.31.
Compared to an average S&P500 Dividend Yield of 2.44, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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-15.26%
EPS Next 3Y-6.4%
NYSE:NOV (10/14/2025, 11:56:01 AM)
12.565
-0.15 (-1.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.11%
Inst Owner Change0.07%
Ins Owners0.74%
Ins Owner Change2.59%
Market Cap4.67B
Analysts72
Price Target15.58 (24%)
Short Float %7.88%
Short Ratio7.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)-0.59%
PT rev (3m)-5.4%
EPS NQ rev (1m)1.7%
EPS NQ rev (3m)-15.65%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-9.54%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 10.87 | ||
| P/S | 0.53 | ||
| P/FCF | 5.13 | ||
| P/OCF | 3.66 | ||
| P/B | 0.72 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)1.22
EY9.71%
EPS(NY)1.16
Fwd EY9.2%
FCF(TTM)2.45
FCFY19.48%
OCF(TTM)3.44
OCFY27.35%
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 | 1.87 |
F-Score5
WACC7.79%
ROIC/WACC0.78
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-34.24%
EPS Next 2Y-15.26%
EPS Next 3Y-6.4%
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-2.45%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.25%
Revenue Next 5Y1.92%
EBIT growth 1Y-11.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.55%
EBIT Next 3Y8.96%
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%