NOV (NYSE:NOV) - Share price, News & Analysis

NOV fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

NOV Stock Overview

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

Rewards

Earnings are forecast to grow 61.52% per year

Risk Analysis

No risks detected for NOV from our risk checks.

NOV Competitors

Baker Hughes

NasdaqGS:BKR

US$38.0b

TechnipFMC

NYSE:FTI

US$3.9b

Liberty Energy

NYSE:LBRT

US$3.1b

NexTier Oilfield Solutions

NYSE:NEX

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for NOV
Historical stock prices
Current Share Price	US$19.78
52 Week High	US$24.06
52 Week Low	US$11.46
Beta	1.91
1 Month Change	6.86%
3 Month Change	16.83%
1 Year Change	21.80%
3 Year Change	-6.12%
5 Year Change	-39.40%
Change since IPO	293.14%

Recent News & Updates

May 11

NOV Has Peaked

NOV reported strong revenue growth in Q1 and an improved EBITDA margin. Rising oil prices have helped oil-related names. Elevated oil markets could drive profitability next quarter. However, the upside appears priced into the stock. Oil prices could become more normalized if the war between Russia and the Ukraine subsides. As the Fed removes the punch bowl, the U.S. economy could stall or even decline. NOV and the economy have likely peaked. Sell NOV.

May 05

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

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of NOV Inc. ( NYSE:NOV...

Shareholder Returns

	NOV	US Energy Services	US Market
7D	10.4%	7.0%	1.0%
1Y	21.8%	42.5%	-15.1%

Return vs Industry: NOV underperformed the US Energy Services industry which returned 42.5% over the past year.

Return vs Market: NOV exceeded the US Market which returned -15.1% over the past year.

Price Volatility

Is NOV's price volatile compared to industry and market?
NOV volatility
NOV Average Weekly Movement	8.4%
Energy Services Industry Average Movement	9.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: NOV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NOV's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1862	27,043	Clay Williams	https://www.nov.com

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors worldwide. The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. It also provides solids control and waste management equipment and services; portable power generation products; drill and wired pipes; drilling optimization and automation services; tubular inspection, repair, and coating services; instrumentation; measuring and monitoring services; downhole and fishing tools; steerable technologies; and drill bits.

NOV Fundamentals Summary

How do NOV's earnings and revenue compare to its market cap?
NOV fundamental statistics
Market Cap	US$7.77b
Earnings (TTM)	-US$185.00m
Revenue (TTM)	US$5.82b

1.3x

P/S Ratio

-42.0x

P/E Ratio

Is NOV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOV income statement (TTM)
Revenue	US$5.82b
Cost of Revenue	US$4.95b
Gross Profit	US$873.00m
Other Expenses	US$1.06b
Earnings	-US$185.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.47
Gross Margin	14.99%
Net Profit Margin	-3.18%
Debt/Equity Ratio	34.2%

How did NOV perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

-21%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

1.57x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: NOV ($19.78) is trading above our estimate of fair value ($19.48)

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 Price-To-Earnings Ratio to the US Energy Services industry average.

PE vs Market: NOV is unprofitable, so we can't compare its Price-To-Earnings 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 Price-To-Book Ratio (1.6x) compared to the US Energy Services industry average (1.4x).

Future Growth

How is NOV forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

61.5%

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 (1.9%).

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 (10.5% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: NOV's revenue (10.5% 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 (11.2%).

Past Performance

How has NOV performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.2%

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 2.2% 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 (-1.8%).

Return on Equity

High ROE: NOV has a negative Return on Equity (-3.59%), as it is currently unprofitable.

Financial Health

How is NOV's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NOV's short term assets ($4.9B) exceed its short term liabilities ($2.0B).

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 net debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: NOV's debt to equity ratio has increased from 23% to 34.2% 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 17.3% per year.

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.01%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NOV's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: NOV's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (4.01%).

Stability and Growth of Payments

Stable Dividend: NOV's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (462.1%), NOV's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure

CEO

Clay Williams (58 yo)

9.42yrs

Tenure

US$11,582,064

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 ($USD11.58M) is above average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: NOV's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: NOV's board of directors are considered experienced (8.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31