NYSE:NOV

Stock Analysis Report

National Oilwell Varco

Executive Summary

National Oilwell Varco, Inc. designs, manufactures, and sells systems, components, and products for oil and gas drilling and production worldwide.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has National Oilwell Varco's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

NOV

3.8%

US Energy Services

0.07%

US Market


1 Year Return

-44.5%

NOV

-39.4%

US Energy Services

8.9%

US Market

Return vs Industry: NOV underperformed the US Energy Services industry which returned -39.4% over the past year.

Return vs Market: NOV underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NOVIndustryMarket
7 Day1.6%3.8%0.07%
30 Day-4.5%-7.2%-0.3%
90 Day-2.2%-15.6%-1.6%
1 Year-44.1%-44.5%-37.7%-39.4%11.3%8.9%
3 Year-39.3%-40.4%-51.7%-57.7%46.3%36.8%
5 Year-67.9%-70.5%-63.6%-69.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is National Oilwell Varco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Oilwell Varco undervalued compared to its fair value and its price relative to the market?

0.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NOV ($21.54) is trading above our estimate of fair value ($13.31)

Significantly Below Fair Value: NOV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NOV is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: NOV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NOV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NOV is overvalued based on its PB Ratio (1x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is National Oilwell Varco forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

99.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: NOV is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: NOV's loss is forecast to worsen by 0% next year.

Revenue vs Market: NOV's revenue (7.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NOV's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOV's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has National Oilwell Varco performed over the past 5 years?

-49.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NOV is unprofitable, and losses have increased over the past 5 years at a rate of -49.6% per year.

Accelerating Growth: Unable to compare NOV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NOV is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-13.1%).


Return on Equity

High ROE: NOV has a negative Return on Equity (-64.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NOV is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NOV is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is National Oilwell Varco's financial position?


Financial Position Analysis

Short Term Liabilities: NOV's short term assets ($6.8B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: NOV's short term assets (6.8B) exceeds its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: NOV's debt to equity ratio (29.3%) is considered satisfactory

Reducing Debt: NOV's debt to equity ratio has increased from 14.7% to 29.3% over the past 5 years.

Debt Coverage: NOV's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: Insufficient data to determine if NOV's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: NOV has a high level of physical assets or inventory.

Debt Coverage by Assets: NOV's debt is covered by short term assets (assets are 2.724920x debt).


Next Steps

Dividend

What is National Oilwell Varco's current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NOV's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NOV's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: NOV's dividends per share have been stable in the past 10 years.

Growing Dividend: NOV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NOV is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NOV's dividends in 3 years are forecast to be thoroughly covered by earnings (12.5% payout ratio).


Next Steps

Management

What is the CEO of National Oilwell Varco's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Clay Williams (56yo)

5.7yrs

Tenure

US$13,828,435

Compensation

Mr. Clay C. Williams serves as the Chairman, President and Chief Executive Officer of National Oilwell Varco, L.P. Mr. Williams has been the Chairman and Chief Executive Officer at National Oilwell Varco N ...


CEO Compensation Analysis

Compensation vs. Market: Clay's total compensation ($USD13.83M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Clay's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.0yrs

Average Tenure

56yo

Average Age

Experienced Management: NOV's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

65yo

Average Age

Experienced Board: NOV's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: NOV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$415,89719 Aug 19
Joseph Rovig
EntityIndividual
Role
Unit President
President of Rig Systems & Rig Aftermarket
Shares22,640
Max PriceUS$18.37
SellUS$99,86707 Aug 19
Eric Mattson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,750
Max PriceUS$21.02
SellUS$423,78401 Mar 19
Scott Duff
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller & Chief Accounting Officer
Shares15,125
Max PriceUS$28.02

Ownership Breakdown


Management Team

  • Clay Williams (56yo)

    Chairman

    • Tenure: 5.7yrs
    • Compensation: US$13.83m
  • Jose Bayardo (47yo)

    Senior VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$5.06m
  • Craig Weinstock (60yo)

    Senior VP & General Counsel

    • Tenure: 5yrs
    • Compensation: US$3.32m
  • Hege Kverneland

    CTO & Corporate VP

    • Tenure: 10.3yrs
  • David Reid

    Chief Marketing Officer

    • Tenure: 0yrs
  • Joe Rovig (58yo)

    President of Rig Systems & Rig Aftermarket

    • Tenure: 5.6yrs
    • Compensation: US$3.73m
  • Scott Duff (51yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 5.3yrs
    • Compensation: US$2.95m
  • Bonnie Houston

    Chief Administrative Officer

    • Tenure: 2.6yrs
  • Alex Philips

    Chief Information Officer

    • Tenure: 4.2yrs
  • Blake McCarthy

    Vice President of Corporate Development & Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Ben Guill (68yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$291.79k
  • David Harrison (72yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$318.48k
  • Jim Hackett (65yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$257.53k
  • Greg Armstrong (61yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$300.29k
  • Eric Mattson (67yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$295.79k
  • Clay Williams (56yo)

    Chairman

    • Tenure: 5.7yrs
    • Compensation: US$13.83m
  • Marcela Donadio (64yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$301.69k
  • Bill Thomas (66yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$303.89k
  • Melody Meyer (61yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$298.94k

Company Information

National Oilwell Varco, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Oilwell Varco, Inc.
  • Ticker: NOV
  • Exchange: NYSE
  • Founded: 1862
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$8.312b
  • Shares outstanding: 385.90m
  • Website: https://www.nov.com

Number of Employees


Location

  • National Oilwell Varco, Inc.
  • 7909 Parkwood Circle Drive
  • Houston
  • Texas
  • 77036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOVNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1996
NO8DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1996
NOV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1996
0K58LSE (London Stock Exchange)YesCommon StockGBUSDOct 1996

Biography

National Oilwell Varco, Inc. designs, manufactures, and sells systems, components, and products for oil and gas drilling and production worldwide. It operates in three segments: Wellbore Technologies, Comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:39
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.