NOV INC (NOV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOV - US62955J1034 - Common Stock
15.61 USD
-0.13 (-0.83%)
15.61 USD
0 (0%)
NOV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NOV was profitable.
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.
Of the past 5 years NOV 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NOV (3.38%) is comparable to the rest of the industry.
NOV's Return On Equity of 5.93% is in line compared to the rest of the industry. NOV outperforms 51.61% of its industry peers.
NOV has a Return On Invested Capital (5.95%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NOV is significantly below the industry average of 13.09%.
The last Return On Invested Capital (5.95%) for NOV is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 5.93% | ||
| ROIC | 5.95% |
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 has a Profit Margin (4.36%) which is in line with its industry peers.
NOV has a Operating Margin (8.05%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 21.46%, NOV is doing worse than 62.90% of the companies in the same industry.
NOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 4.36% | ||
| GM | 21.46% |
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.
The debt/assets ratio for NOV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that NOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NOV (1.98) is comparable to the rest of the industry.
The Debt to FCF ratio of NOV is 2.28, which is a good value as it means it would take NOV, 2.28 years of fcf income to pay off all of its debts.
NOV's Debt to FCF ratio of 2.28 is fine compared to the rest of the industry. NOV outperforms 72.58% of its industry peers.
NOV has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
NOV has a Debt to Equity ratio of 0.30. This is in the better half of the industry: NOV outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.73
WACC8.17%
2.3 Liquidity
NOV has a Current Ratio of 2.55. This indicates that NOV is financially healthy and has no problem in meeting its short term obligations.
NOV has a Current ratio of 2.55. This is in the better half of the industry: NOV outperforms 77.42% of its industry peers.
A Quick Ratio of 1.71 indicates that NOV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.71, NOV is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for NOV have decreased strongly by -32.43% in the last year.
The Earnings Per Share has been growing by 40.89% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.46% in the past year.
The Revenue has been growing slightly by 0.91% on average over the past years.
EPS 1Y (TTM)-32.43%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-0.68%
3.2 Future
NOV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.24% yearly.
NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.66% yearly.
EPS Next Y-42.23%
EPS Next 2Y-16.12%
EPS Next 3Y-6.02%
EPS Next 5Y-0.24%
Revenue Next Year-1.99%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.23%
Revenue Next 5Y1.66%
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.
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
With a Price/Earnings ratio of 15.61, NOV is valued correctly.
Based on the Price/Earnings ratio, NOV is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
NOV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
NOV is valuated correctly with a Price/Forward Earnings ratio of 13.78.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than 74.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. NOV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 13.78 |
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 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.49 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
A cheap valuation may be justified as NOV's earnings are expected to decrease with -6.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-16.12%
EPS Next 3Y-6.02%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
NOV's Dividend Yield is a higher than the industry average which is at 1.32.
Compared to an average S&P500 Dividend Yield of 1.87, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
The dividend of NOV is nicely growing with an annual growth rate of 6.81%!
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 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
50.13% of the earnings are spent on dividend by NOV. This is a bit on the high side, but may be sustainable.
NOV's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.13%
EPS Next 2Y-16.12%
EPS Next 3Y-6.02%
15.61
-0.13 (-0.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners109.44%
Inst Owner Change3.26%
Ins Owners0.4%
Ins Owner Change-0.58%
Market Cap5.69B
Revenue(TTM)8.78B
Net Income(TTM)383.00M
Analysts72
Price TargetN/A
Short Float %6.51%
Short Ratio5.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0.28
Dividend Growth(5Y)6.81%
DP50.13%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.49%
Min EPS beat(2)-56.61%
Max EPS beat(2)-2.37%
EPS beat(4)1
Avg EPS beat(4)-18.66%
Min EPS beat(4)-56.61%
Max EPS beat(4)10.12%
EPS beat(8)3
Avg EPS beat(8)-5.6%
EPS beat(12)6
Avg EPS beat(12)1.81%
EPS beat(16)8
Avg EPS beat(16)23.76%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.65%
Max Revenue beat(2)1.06%
Revenue beat(4)3
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)1.94%
Revenue beat(8)6
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.25%
PT rev (1m)8.39%
PT rev (3m)7.36%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-4.32%
EPS NY rev (3m)-12.32%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 13.78 | ||
| P/S | 0.65 | ||
| P/FCF | 6.49 | ||
| P/OCF | 4.49 | ||
| P/B | 0.88 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)1
EY6.41%
EPS(NY)1.13
Fwd EY7.26%
FCF(TTM)2.4
FCFY15.4%
OCF(TTM)3.48
OCFY22.29%
SpS24.06
BVpS17.7
TBVpS11.97
PEG (NY)N/A
PEG (5Y)0.38
Graham Number19.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 5.93% | ||
| ROCE | 7.78% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 9.34% | ||
| OM | 8.05% | ||
| PM (TTM) | 4.36% | ||
| GM | 21.46% | ||
| FCFM | 9.99% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.28 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 111.05% | ||
| Cap/Sales | 4.47% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 119.83% | ||
| Profit Quality | 228.98% | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.98 |
F-Score4
WACC8.17%
ROIC/WACC0.73
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)-32.43%
EPS 3YN/A
EPS 5Y40.89%
EPS Q2Q%-66.67%
EPS Next Y-42.23%
EPS Next 2Y-16.12%
EPS Next 3Y-6.02%
EPS Next 5Y-0.24%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y17.1%
Revenue growth 5Y0.91%
Sales Q2Q%-0.68%
Revenue Next Year-1.99%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.23%
Revenue Next 5Y1.66%
EBIT growth 1Y-14.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.4%
EBIT Next 3Y9.98%
EBIT Next 5Y7.01%
FCF growth 1Y348.44%
FCF growth 3Y119.59%
FCF growth 5Y14.65%
OCF growth 1Y1686.25%
OCF growth 3Y64.86%
OCF growth 5Y12.8%
NOV INC / NOV FAQ
What is the fundamental rating for NOV stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOV.
What is the valuation status for NOV stock?
ChartMill assigns a valuation rating of 5 / 10 to NOV INC (NOV). This can be considered as Fairly Valued.
What is the profitability of NOV stock?
NOV INC (NOV) has a profitability rating of 4 / 10.
What is the valuation of NOV INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NOV INC (NOV) is 15.61 and the Price/Book (PB) ratio is 0.88.
How financially healthy is NOV INC?
The financial health rating of NOV INC (NOV) is 6 / 10.