NOV INC (NOV)
US62955J1034 - Common Stock
Overall NOV gets a fundamental rating of 5 out of 10. We evaluated NOV against 59 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make NOV suitable for value investing!
1. Profitability
1.1 Basic Checks
NOV had positive earnings in the past year.
In the past year NOV had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 9.39%, NOV is in the better half of the industry, outperforming 77.97% of the companies in the same industry.
NOV's Return On Equity of 16.60% is fine compared to the rest of the industry. NOV outperforms 76.27% of its industry peers.
With a Return On Invested Capital value of 5.93%, NOV perfoms like the industry average, outperforming 42.37% of the companies in the same industry.
| 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
With a decent Profit Margin value of 12.05%, NOV is doing good in the industry, outperforming 74.58% of the companies in the same industry.
NOV has a Operating Margin (9.32%) 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 22.62% is in line compared to the rest of the industry. NOV outperforms 42.37% of its industry peers.
NOV's Gross Margin has improved in the last couple of years.
| 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
NOV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NOV has been increased compared to 5 years ago.
Compared to 1 year ago, NOV has an improved debt to assets ratio.
2.2 Solvency
NOV has an Altman-Z score of 1.99. 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 1.99 is in line compared to the rest of the industry. NOV outperforms 55.93% 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.
NOV has a better Debt to FCF ratio (2.55) than 62.71% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that NOV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, NOV perfoms like the industry average, outperforming 55.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.78
WACC7.57%
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.
NOV has a better Current ratio (2.57) than 76.27% of its industry peers.
A Quick Ratio of 1.65 indicates that NOV should not have too much problems paying its short term obligations.
NOV's Quick ratio of 1.65 is fine compared to the rest of the industry. NOV outperforms 67.80% 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.
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.
Looking at the last year, NOV shows a small growth in Revenue. The Revenue has grown by 7.12% in the last year.
The Revenue has been growing slightly by 0.31% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.99% on average over the next years.
EPS Next Y18.92%
EPS Next 2Y10.92%
EPS Next 3Y10.26%
EPS Next 5Y11.05%
Revenue Next Year3.88%
Revenue Next 2Y2.99%
Revenue Next 3Y3.14%
Revenue Next 5Y3.99%
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.
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
A Price/Earnings ratio of 9.75 indicates a reasonable valuation of NOV.
84.75% of the companies in the same industry are more expensive than NOV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.55. NOV is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.16, the valuation of NOV can be described as reasonable.
Based on the Price/Forward Earnings ratio, NOV is valued cheaply inside the industry as 86.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOV.
84.75% of the companies in the same industry are more expensive than NOV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 5.72 |
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.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y10.92%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.96%.
NOV's Dividend Yield is a higher than the industry average which is at 3.70.
NOV's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 Years1
Div Non Decr Years4
5.3 Sustainability
9.13% of the earnings are spent on dividend by NOV. This is a low number and sustainable payout ratio.
NOV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.13%
EPS Next 2Y10.92%
EPS Next 3Y10.26%
NOV INC
NYSE:NOV (12/26/2024, 8:04:01 PM)
After market: 14.59 +0.16 (+1.11%)14.43
-0.07 (-0.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change0.45%
Ins Owners0.63%
Ins Owner Change-4.04%
Market Cap5.61B
Analysts72.86
Price Target20.91 (44.91%)
Short Float %3.56%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)0.16%
DP9.13%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)26.64%
Min EPS beat(2)-9.94%
Max EPS beat(2)63.22%
EPS beat(4)2
Avg EPS beat(4)7.47%
Min EPS beat(4)-33.06%
Max EPS beat(4)63.22%
EPS beat(8)5
Avg EPS beat(8)12.04%
EPS beat(12)7
Avg EPS beat(12)37.9%
EPS beat(16)8
Avg EPS beat(16)24.76%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)2.63%
Revenue beat(8)5
Avg Revenue beat(8)0.85%
Revenue beat(12)9
Avg Revenue beat(12)1.43%
Revenue beat(16)10
Avg Revenue beat(16)0.49%
PT rev (1m)-7.42%
PT rev (3m)-13.6%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-21.08%
EPS NY rev (1m)0.71%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.63%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.16 | ||
| P/S | 0.63 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.15 | ||
| P/B | 0.87 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 5.72 |
EPS(TTM)1.48
EY10.26%
EPS(NY)1.57
Fwd EY10.91%
FCF(TTM)2.01
FCFY13.91%
OCF(TTM)2.8
OCFY19.41%
SpS22.89
BVpS16.61
TBVpS11.2
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 16.6% | ||
| ROCE | 9.1% | ||
| ROIC | 5.93% | ||
| ROICexc | 6.64% | ||
| ROICexgc | 8.96% | ||
| OM | 9.32% | ||
| PM (TTM) | 12.05% | ||
| GM | 22.62% | ||
| FCFM | 8.77% |
ROA(3y)2.57%
ROA(5y)-12.85%
ROE(3y)4.71%
ROE(5y)-22.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y28.09%
ROICexc growth 3YN/A
ROICexc growth 5Y43.79%
OM growth 3YN/A
OM growth 5Y24.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y44.17%
GM growth 5Y4.57%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.55 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 93.07% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 9.43 | ||
| Cash Conversion | 93.8% | ||
| Profit Quality | 72.79% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.99 |
F-Score7
WACC7.57%
ROIC/WACC0.78
Cap/Depr(3y)76.83%
Cap/Depr(5y)67.68%
Cap/Sales(3y)3.3%
Cap/Sales(5y)3.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.46%
EPS 3Y62.19%
EPS 5YN/A
EPS Q2Q%13.79%
EPS Next Y18.92%
EPS Next 2Y10.92%
EPS Next 3Y10.26%
EPS Next 5Y11.05%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y12.12%
Revenue growth 5Y0.31%
Sales Q2Q%0.27%
Revenue Next Year3.88%
Revenue Next 2Y2.99%
Revenue Next 3Y3.14%
Revenue Next 5Y3.99%
EBIT growth 1Y27.3%
EBIT growth 3YN/A
EBIT growth 5Y25.27%
EBIT Next Year55.59%
EBIT Next 3Y21.62%
EBIT Next 5Y15.74%
FCF growth 1Y253.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y467%
OCF growth 3Y-46.35%
OCF growth 5Y-22.79%