NOV INC (NOV)
US62955J1034 - Common Stock
Taking everything into account, NOV scores 5 out of 10 in our fundamental rating. NOV was compared to 60 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make NOV suitable for value investing!
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.
The reported net income has been mixed in the past 5 years: NOV reported negative net income in multiple years.
NOV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of NOV (9.39%) is better than 80.00% of its industry peers.
With a decent Return On Equity value of 16.60%, NOV is doing good in the industry, outperforming 78.33% of the companies in the same industry.
NOV has a Return On Invested Capital (5.93%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 16.6% | ||
| ROIC | 5.93% |
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 12.05%. This is in the better half of the industry: NOV outperforms 78.33% of its industry peers.
NOV has a Operating Margin (9.32%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NOV has grown nicely.
With a Gross Margin value of 22.62%, NOV perfoms like the industry average, outperforming 45.00% 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 | 9.32% | ||
| PM (TTM) | 12.05% | ||
| GM | 22.62% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOV is destroying value.
Compared to 1 year ago, NOV has more shares outstanding
NOV has more shares outstanding than it did 5 years ago.
NOV has a better debt/assets ratio than last year.
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 has a Altman-Z score of 2.08. This is comparable to the rest of the industry: NOV outperforms 55.00% of its industry peers.
The Debt to FCF ratio of NOV is 2.55, which is a good value as it means it would take NOV, 2.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.55, NOV is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
NOV has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NOV (0.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.78
WACC7.58%
2.3 Liquidity
NOV has a Current Ratio of 2.57. This indicates that NOV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.57, NOV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that NOV should not have too much problems paying its short term obligations.
NOV has a better Quick ratio (1.65) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.46% over the past year.
The Earnings Per Share has been growing by 62.19% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 7.12% in the past year.
NOV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.31% yearly.
EPS 1Y (TTM)17.46%
EPS 3Y62.19%
EPS 5YN/A
EPS Q2Q%13.79%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y12.12%
Revenue growth 5Y0.31%
Sales Q2Q%0.27%
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 Y18.08%
EPS Next 2Y11.14%
EPS Next 3Y10.8%
EPS Next 5Y10.79%
Revenue Next Year3.93%
Revenue Next 2Y3.07%
Revenue Next 3Y3.34%
Revenue Next 5Y4.6%
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.
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 11.08, the valuation of NOV can be described as reasonable.
Based on the Price/Earnings ratio, NOV is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NOV to the average of the S&P500 Index (28.96), we can say NOV is valued rather cheaply.
NOV is valuated reasonably with a Price/Forward Earnings ratio of 10.37.
NOV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 73.33% of the companies in the same industry.
NOV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOV indicates a rather cheap valuation: NOV is cheaper than 81.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y11.14%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, NOV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.50, NOV pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.23, NOV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 Years4
5.3 Sustainability
NOV pays out 9.13% 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.
DP9.13%
EPS Next 2Y11.14%
EPS Next 3Y10.8%
NOV INC
NYSE:NOV (11/21/2024, 8:04:01 PM)
Premarket: 16.42 +0.02 (+0.12%)16.4
+0.14 (+0.86%)
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 Cap6.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 10.37 | ||
| 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 | 9.39% | ||
| ROE | 16.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.32% | ||
| PM (TTM) | 12.05% | ||
| GM | 22.62% | ||
| 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 | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.65 | ||
| 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)17.46%
EPS 3Y62.19%
EPS 5Y
EPS Q2Q%
EPS Next Y18.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.12%
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