NYSE:NOV

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National Oilwell Varco

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: NOV is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: NOV's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-9.3%

NOV

-5.6%

US Energy Services

0.6%

US Market


1 Year Return

-42.6%

NOV

-33.7%

US Energy Services

22.7%

US Market

Return vs Industry: NOV underperformed the US Energy Services industry which returned -36.9% over the past year.

Return vs Market: NOV underperformed the US Market which returned 21% over the past year.


Shareholder returns

NOVIndustryMarket
7 Day-9.3%-5.6%0.6%
30 Day51.2%40.4%13.1%
90 Day7.3%16.8%4.5%
1 Year-42.2%-42.6%-31.7%-33.7%25.5%22.7%
3 Year-60.9%-61.7%-61.3%-64.3%49.0%39.1%
5 Year-60.4%-62.1%-58.3%-65.7%98.3%76.5%

Long-Term 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?

25.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOV ($12.7) is trading below our estimate of fair value ($16.96)

Significantly Below Fair Value: NOV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NOV is unprofitable, so we can't compare its PE Ratio to the US 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 (0.9x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is National Oilwell Varco forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

75.9%

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 (2.2%).

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

High Growth Earnings: NOV's is expected to become profitable in the next 3 years.

Revenue vs Market: NOV's revenue (5.3% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: NOV's revenue (5.3% 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 (3.7%).


Next Steps

Past Performance

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

-35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOV is currently unprofitable.

Growing Profit Margin: NOV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOV is unprofitable, and losses have increased over the past 5 years at a rate of 35.5% 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 (-38.2%).


Return on Equity

High ROE: NOV has a negative Return on Equity (-46.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is National Oilwell Varco's financial position?


Financial Position Analysis

Short Term Liabilities: NOV's short term assets ($5.4B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: NOV's short term assets ($5.4B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: NOV's debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: NOV's debt to equity ratio has increased from 21.9% to 32.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NOV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NOV is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 27.2% per year.


Next Steps

Dividend

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

0.27%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NOV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NOV is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Clay Williams (57 yo)

6.75yrs

Tenure

US$12,826,364

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 ($USD12.83M) is above average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Clay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Clay Williams
Chairman6.75yrsUS$12.83m0.18%
$ 8.7m
Jose Bayardo
Senior VP & CFO5.25yrsUS$4.57m0.065%
$ 3.2m
Scott Duff
VP, Corporate Controller & Chief Accounting Officer6.33yrsUS$2.68m0.019%
$ 919.1k
Craig Weinstock
Senior VP6.08yrsUS$2.96m0.028%
$ 1.4m
Joseph Rovig
President of Rig Technologiesno dataUS$3.32m0.030%
$ 1.5m
David Reid
Chief Marketing Officer & CTO0.58yrno datano data
Alex Philips
Chief Information Officer5.25yrsno datano data
Bonnie Houston
Chief Administrative Officer3.67yrsno datano data
Blake McCarthy
Vice President of Corporate Development & Investor Relations1.83yrsno datano data
Kirk Shelton
President of Completion & Production Solutions6.58yrsno datano data
Isaac Joseph
President of NOV Wellbore Technologies4.33yrsno datano data
Rium Johnson
Chief Health1.83yrsno datano data

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: NOV's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clay Williams
Chairman6.75yrsUS$12.83m0.18%
$ 8.7m
Benjamin Guill
Independent Director21.83yrsUS$295.00k0.028%
$ 1.4m
David Harrison
Independent Director17.25yrsUS$310.00k0.020%
$ 965.5k
James Hackett
Independent Director4.58yrsUS$291.47k0.012%
$ 579.9k
Gregory Armstrong
Lead Independent Directorno dataUS$305.00k0.019%
$ 950.2k
Eric Mattson
Independent Director15.67yrsUS$297.50k0.017%
$ 850.6k
Marcela Donadio
Independent Director6.58yrsUS$295.00k0.011%
$ 528.6k
William Thomas
Independent Director5yrsUS$297.50k0.0092%
$ 456.1k
Melody Meyer
Independent Director3.17yrsUS$295.00k0.0065%
$ 319.0k

6.5yrs

Average Tenure

66yo

Average Age

Experienced Board: NOV's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$4.931b
  • Shares outstanding: 388.26m
  • Website: https://www.nov.com

Number of Employees


Location

  • National Oilwell Varco, Inc.
  • 7909 Parkwood Circle Drive
  • Houston
  • Texas
  • 77036-6565
  • 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
N1OV34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:13
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.