NOV INC (NOV) Stock Fundamental Analysis
NYSE:NOV - New York Stock Exchange, Inc. - US62955J1034 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NOV. NOV was compared to 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 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.
In the past year NOV had a positive cash flow from operations.
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
With a decent Return On Assets value of 5.59%, NOV is doing good in the industry, outperforming 62.07% of the companies in the same industry.
NOV's Return On Equity of 9.96% is in line compared to the rest of the industry. NOV outperforms 55.17% of its industry peers.
With a Return On Invested Capital value of 7.43%, NOV perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NOV is below the industry average of 8.11%.
The 3 year average ROIC (5.23%) for NOV is below the current ROIC(7.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.96% | ||
| ROIC | 7.43% |
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
NOV's Profit Margin of 7.16% is in line compared to the rest of the industry. NOV outperforms 56.90% of its industry peers.
NOV has a Operating Margin (9.88%) which is comparable to the rest of the industry.
NOV has a Gross Margin of 22.66%. This is comparable to the rest of the industry: NOV outperforms 43.10% of its industry peers.
NOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.88% | ||
| PM (TTM) | 7.16% | ||
| GM | 22.66% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y17.44%
GM growth 5Y17.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOV is destroying value.
The number of shares outstanding for NOV has been reduced compared to 1 year ago.
NOV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NOV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.02 indicates that NOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOV's Altman-Z score of 2.02 is fine compared to the rest of the industry. NOV outperforms 60.34% of its industry peers.
The Debt to FCF ratio of NOV is 2.11, which is a good value as it means it would take NOV, 2.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, NOV is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
NOV has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.11 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.88
WACC8.43%
2.3 Liquidity
A Current Ratio of 2.46 indicates that NOV has no problem at all paying its short term obligations.
NOV has a Current ratio of 2.46. This is in the better half of the industry: NOV outperforms 70.69% of its industry peers.
A Quick Ratio of 1.64 indicates that NOV should not have too much problems paying its short term obligations.
The Quick ratio of NOV (1.64) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.78%, which is quite impressive.
NOV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.89% yearly.
Looking at the last year, NOV shows a small growth in Revenue. The Revenue has grown by 3.34% in the last year.
NOV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
EPS 1Y (TTM)25.78%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%46.43%
Revenue 1Y (TTM)3.34%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-1.49%
3.2 Future
Based on estimates for the next years, NOV will show a small growth in Earnings Per Share. The EPS will grow by 6.36% on average per year.
Based on estimates for the next years, NOV will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y-12.65%
EPS Next 2Y2.22%
EPS Next 3Y4.5%
EPS Next 5Y6.36%
Revenue Next Year0.02%
Revenue Next 2Y1.58%
Revenue Next 3Y2.84%
Revenue Next 5Y3.18%
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
With a Price/Earnings ratio of 8.87, the valuation of NOV can be described as very reasonable.
NOV's Price/Earnings ratio is rather cheap when compared to the industry. NOV is cheaper than 84.48% of the companies in the same industry.
NOV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.98.
NOV is valuated reasonably with a Price/Forward Earnings ratio of 10.16.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOV is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NOV is valued cheaper than 91.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y2.22%
EPS Next 3Y4.5%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.68, NOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
On average, the dividend of NOV grows each year by 6.81%, which is quite nice.
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)6.81%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
17.01% of the earnings are spent on dividend by NOV. This is a low number and sustainable payout ratio.
NOV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.01%
EPS Next 2Y2.22%
EPS Next 3Y4.5%
NYSE:NOV (3/3/2025, 2:58:05 PM)
14.285
-0.63 (-4.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.82%
Inst Owner Change3.3%
Ins Owners0.6%
Ins Owner Change8.68%
Market Cap5.56B
Analysts70
Price Target19.47 (36.3%)
Short Float %4.74%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.28
Dividend Growth(5Y)6.81%
DP17.01%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-9.94%
Max EPS beat(2)10.12%
EPS beat(4)3
Avg EPS beat(4)18.26%
Min EPS beat(4)-9.94%
Max EPS beat(4)63.22%
EPS beat(8)5
Avg EPS beat(8)12.16%
EPS beat(12)8
Avg EPS beat(12)50.21%
EPS beat(16)9
Avg EPS beat(16)28.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)1.94%
Revenue beat(4)3
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)1.94%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)9
Avg Revenue beat(12)1.39%
Revenue beat(16)11
Avg Revenue beat(16)0.75%
PT rev (1m)0.25%
PT rev (3m)-7.28%
EPS NQ rev (1m)-12.07%
EPS NQ rev (3m)-16.61%
EPS NY rev (1m)-6.05%
EPS NY rev (3m)-11.09%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 10.16 | ||
| P/S | 0.63 | ||
| P/FCF | 5.83 | ||
| P/OCF | 4.26 | ||
| P/B | 0.87 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)1.61
EY11.27%
EPS(NY)1.41
Fwd EY9.84%
FCF(TTM)2.45
FCFY17.15%
OCF(TTM)3.35
OCFY23.46%
SpS22.8
BVpS16.39
TBVpS10.89
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.96% | ||
| ROCE | 9.72% | ||
| ROIC | 7.43% | ||
| ROICexc | 8.6% | ||
| ROICexgc | 11.86% | ||
| OM | 9.88% | ||
| PM (TTM) | 7.16% | ||
| GM | 22.66% | ||
| FCFM | 10.74% |
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 3Y17.44%
GM growth 5Y17.89%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 102.33% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 106.97% | ||
| Profit Quality | 150.08% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 2.02 |
F-Score7
WACC8.43%
ROIC/WACC0.88
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)25.78%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%46.43%
EPS Next Y-12.65%
EPS Next 2Y2.22%
EPS Next 3Y4.5%
EPS Next 5Y6.36%
Revenue 1Y (TTM)3.34%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-1.49%
Revenue Next Year0.02%
Revenue Next 2Y1.58%
Revenue Next 3Y2.84%
Revenue Next 5Y3.18%
EBIT growth 1Y34.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.52%
EBIT Next 3Y19.72%
EBIT Next 5Y13.01%
FCF growth 1Y780.71%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y811.89%
OCF growth 3Y64.86%
OCF growth 5Y12.8%