NOV INC (NOV)
US62955J1034 - Common Stock
We assign a fundamental rating of 6 out of 10 to NOV. NOV was compared to 63 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. This makes NOV very considerable 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
With an excellent Return On Assets value of 9.36%, NOV belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
NOV has a better Return On Equity (16.57%) than 82.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.89%, NOV is in line with its industry, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 16.57% | ||
| ROIC | 5.89% |
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 11.88%. This is amongst the best in the industry. NOV outperforms 80.95% of its industry peers.
NOV has a Operating Margin of 9.20%. This is in the better half of the industry: NOV outperforms 60.32% of its industry peers.
In the last couple of years the Operating Margin of NOV has grown nicely.
NOV's Gross Margin of 22.62% is in line compared to the rest of the industry. NOV outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of NOV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.2% | ||
| PM (TTM) | 11.88% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 2.11. 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 (2.11) which is in line with its industry peers.
The Debt to FCF ratio of NOV is 4.21, which is a neutral value as it means it would take NOV, 4.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOV (4.21) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.30 indicates that NOV is not too dependend on debt financing.
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 | 4.21 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.83
WACC7.07%
2.3 Liquidity
A Current Ratio of 2.61 indicates that NOV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.61, NOV is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that NOV should not have too much problems paying its short term obligations.
NOV has a better Quick ratio (1.64) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| 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 37.14%, which is quite impressive.
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.
NOV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.00%.
The Revenue has been growing slightly by 0.31% on average over the past years.
EPS 1Y (TTM)37.14%
EPS 3Y62.19%
EPS 5YN/A
EPS Q2Q%46.15%
Revenue 1Y (TTM)11%
Revenue growth 3Y12.12%
Revenue growth 5Y0.31%
Sales Q2Q%5.88%
3.2 Future
Based on estimates for the next years, NOV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
The Revenue is expected to grow by 4.60% on average over the next years.
EPS Next Y28.41%
EPS Next 2Y19.72%
EPS Next 3Y18.02%
EPS Next 5Y10.79%
Revenue Next Year5.99%
Revenue Next 2Y6.34%
Revenue Next 3Y5.91%
Revenue Next 5Y4.6%
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
A Price/Earnings ratio of 11.30 indicates a reasonable valuation of NOV.
NOV's Price/Earnings ratio is rather cheap when compared to the industry. NOV is cheaper than 82.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. NOV is valued rather cheaply when compared to this.
NOV is valuated reasonably with a Price/Forward Earnings ratio of 8.87.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
NOV is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 8.87 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 6.8 |
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.
The decent profitability rating of NOV may justify a higher PE ratio.
A more expensive valuation may be justified as NOV's earnings are expected to grow with 18.02% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y19.72%
EPS Next 3Y18.02%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, NOV pays a bit more dividend than its industry peers.
NOV's Dividend Yield is slightly below the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 8.42% 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.
DP8.42%
EPS Next 2Y19.72%
EPS Next 3Y18.02%
NOV INC
NYSE:NOV (9/6/2024, 8:04:01 PM)
After market: 16.31 +0.04 (+0.25%)16.27
-0.42 (-2.52%)
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 Cap6.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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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 | 11.3 | ||
| Fwd PE | 8.87 | ||
| 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)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 16.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.2% | ||
| PM (TTM) | 11.88% | ||
| 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 Turnover0.79
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 | 2.61 | ||
| Quick Ratio | 1.64 | ||
| 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)37.14%
EPS 3Y62.19%
EPS 5Y
EPS Q2Q%
EPS Next Y28.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11%
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