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NOV

NOVNYSE:NOV Stock Report

Market Cap

US$5.1b

7D

-3.2%

1Y

36.3%

Updated

25 Sep, 2021

Data

Company Financials +
NOV fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

NOV Overview

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for use in oil and gas drilling and production, and industrial and renewable energy sectors worldwide.

Rewards

Trading at 38.9% below our estimate of its fair value

Earnings are forecast to grow 93.25% per year

Risk Analysis

No risks detected for NOV from our risk checks.

NOV Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NOV
Historical stock prices
Current Share PriceUS$12.96
52 Week HighUS$7.70
52 Week LowUS$18.02
Beta2.32
1 Month Change-0.69%
3 Month Change-17.24%
1 Year Change36.28%
3 Year Change-69.92%
5 Year Change-64.73%
Change since IPO157.59%

Recent News & Updates

Sep 16
Here's Why NOV (NYSE:NOV) Can Afford Some Debt

Here's Why NOV (NYSE:NOV) Can Afford Some Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Sep 10

NOV Will Recover From The Pandemic But It Remains Unattractive

NOV has begun to recover from the pandemic. NOV has a strong balance sheet. However, it is facing strong secular headwinds. Due to these headwinds, NOV has posted material losses for six consecutive years.

Jun 24
Calculating The Fair Value Of NOV Inc. (NYSE:NOV)

Calculating The Fair Value Of NOV Inc. (NYSE:NOV)

Does the June share price for NOV Inc. ( NYSE:NOV ) reflect what it's really worth? Today, we will estimate the stock's...

Jun 03
We Think NOV (NYSE:NOV) Has A Fair Chunk Of Debt

We Think NOV (NYSE:NOV) Has A Fair Chunk Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 13
Should Shareholders Reconsider NOV Inc.'s (NYSE:NOV) CEO Compensation Package?

Should Shareholders Reconsider NOV Inc.'s (NYSE:NOV) CEO Compensation Package?

Shareholders will probably not be too impressed with the underwhelming results at NOV Inc. ( NYSE:NOV ) recently...

Shareholder Returns

NOVUS Energy ServicesUS Market
7D-3.2%2.2%0.1%
1Y36.3%81.7%35.3%

Return vs Industry: NOV underperformed the US Energy Services industry which returned 81.7% over the past year.

Return vs Market: NOV matched the US Market which returned 35.3% over the past year.

Price Volatility

Is NOV's price volatile compared to industry and market?
NOV volatility
NOV Beta2.32
Industry Beta2.41
Market Beta1

Stable Share Price: NOV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NOV's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186227,631Clay Williamshttps://www.nov.com

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for use in oil and gas drilling and production, and industrial and renewable energy sectors worldwide. It operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The company offers various equipment and technologies used to perform drilling operations.

NOV Fundamentals Summary

How do NOV's earnings and revenue compare to its market cap?
NOV fundamental statistics
Market CapUS$5.06b
Earnings (TTM)-US$543.00m
Revenue (TTM)US$5.38b

0.9x

P/S Ratio

-9.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOV income statement (TTM)
RevenueUS$5.38b
Cost of RevenueUS$4.92b
Gross ProfitUS$460.00m
ExpensesUS$1.00b
Earnings-US$543.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)-1.39
Gross Margin8.55%
Net Profit Margin-10.10%
Debt/Equity Ratio32.6%

How did NOV perform over the long term?

See historical performance and comparison

Valuation

Is NOV undervalued compared to its fair value and its price relative to the market?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOV ($12.96) is trading below our estimate of fair value ($21.22)

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's PB Ratio (1x) is in line with the US Energy Services industry average.


Future Growth

How is NOV forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

93.3%

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%).

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 (11.5% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: NOV's revenue (11.5% 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 (3.6%).


Past Performance

How has NOV performed over the past 5 years?

-12.8%

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 12.8% 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 (-49.7%).


Return on Equity

High ROE: NOV has a negative Return on Equity (-10.39%), as it is currently unprofitable.


Financial Health

How is NOV's financial position?


Financial Position Analysis

Short Term Liabilities: NOV's short term assets ($4.9B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: NOV's short term assets ($4.9B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: NOV's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: NOV's debt to equity ratio has increased from 20.3% to 32.6% 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 11.8% per year.


Dividend

What is NOV current dividend yield, its reliability and sustainability?

0.20%

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?

6.1yrs

Average management tenure


CEO

Clay Williams (58 yo)

7.58yrs

Tenure

US$11,289,789

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 ($USD11.29M) is above average for companies of similar size in the US market ($USD6.40M).

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


Leadership Team

Experienced Management: NOV's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: NOV's board of directors are considered experienced (7.4 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

NOV Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: NOV Inc.
  • Ticker: NOV
  • Exchange: NYSE
  • Founded: 1862
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$5.064b
  • Shares outstanding: 390.70m
  • Website: https://www.nov.com

Number of Employees


Location

  • NOV Inc.
  • 7909 Parkwood Circle Drive
  • Houston
  • Texas
  • 77036-6565
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:15
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.