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 58 industry peers in the Energy Equipment & Services industry. NOV has an average financial health and profitability rating. NOV may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make NOV suitable for value investing!
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.
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
NOV's Return On Assets of 9.39% is fine compared to the rest of the industry. NOV outperforms 79.31% of its industry peers.
Looking at the Return On Equity, with a value of 16.60%, NOV is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.93%, NOV is in line with its industry, outperforming 44.83% 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
Looking at the Profit Margin, with a value of 12.05%, NOV is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
Looking at the Operating Margin, with a value of 9.32%, NOV is in line with its industry, outperforming 55.17% of the companies in the same industry.
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 43.10% 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
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 1.98. 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 (1.98) which is comparable to the rest of the industry.
NOV has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as NOV would need 2.55 years to pay back of all of its debts.
NOV has a better Debt to FCF ratio (2.55) than 68.97% of its industry peers.
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 line with its industry, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.73
WACC8.12%
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 75.86% 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.
The Quick ratio of NOV (1.65) is better than 67.24% 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 11.05% yearly.
NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y18.92%
EPS Next 2Y10.92%
EPS Next 3Y10.26%
EPS Next 5Y11.05%
Revenue Next Year3.69%
Revenue Next 2Y2.41%
Revenue Next 3Y2.82%
Revenue Next 5Y3.83%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 9.73, the valuation of NOV can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NOV indicates a rather cheap valuation: NOV is cheaper than 84.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, NOV is valued rather cheaply.
The Price/Forward Earnings ratio is 9.14, which indicates a very decent valuation of NOV.
NOV's Price/Forward Earnings ratio is rather cheap when compared to the industry. NOV is cheaper than 89.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. NOV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOV.
Based on the Price/Free Cash Flow ratio, NOV is valued cheaply inside the industry as 84.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.17 | ||
| EV/EBITDA | 5.68 |
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)0.51
PEG (5Y)N/A
EPS Next 2Y10.92%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.85%. 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 3.31.
NOV's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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 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.
The dividend of NOV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP9.13%
EPS Next 2Y10.92%
EPS Next 3Y10.26%
NOV INC
NYSE:NOV (1/29/2025, 8:04:01 PM)
After market: 14.4 0 (0%)14.4
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change3.79%
Ins Owners0.63%
Ins Owner Change-4.04%
Market Cap5.60B
Analysts71.72
Price Target20.35 (41.32%)
Short Float %5.35%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend0.2
Dividend Growth(5Y)0.16%
DP9.13%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
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)-2.66%
PT rev (3m)-9.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.63 | ||
| P/FCF | 7.17 | ||
| P/OCF | 5.14 | ||
| P/B | 0.87 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 5.68 |
EPS(TTM)1.48
EY10.28%
EPS(NY)1.57
Fwd EY10.94%
FCF(TTM)2.01
FCFY13.94%
OCF(TTM)2.8
OCFY19.45%
SpS22.89
BVpS16.61
TBVpS11.2
PEG (NY)0.51
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 | 1.98 |
F-Score7
WACC8.12%
ROIC/WACC0.73
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 Year3.69%
Revenue Next 2Y2.41%
Revenue Next 3Y2.82%
Revenue Next 5Y3.83%
EBIT growth 1Y27.3%
EBIT growth 3YN/A
EBIT growth 5Y25.27%
EBIT Next Year55.03%
EBIT Next 3Y20.67%
EBIT Next 5Y15.11%
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%