National Oilwell Varco Stock Analysis, Valuation (NYSE:NOV)

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$38.38 $0.13 (0.34%) NOV stock closing price Apr 23, 2018 (Closing)
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National Oilwell Varco
Updated on : Apr 23, 2018
previous close
NOV 38.4 (0%)
S&P 500 2670.3 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil Field Machines and equipment
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-18.3%
Operating Profit
Operating Margin:
-3.8%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
2.71B
Debt/Equity Ratio:
 0.19
Compared to the industry
Cash Flow
Operating cash flow:
$321M
Net Income:
-$14M
Dividend Yield
NOV dividend yield:
0.52%
PROS      CONS
Low Debt Burden
FCF Margin
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
NOV PS :
2
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-1%
Return on Equity:
-1.7%
Free Cash Flow Margin:
13%
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NOV Stock Analysis

5 2

Investors can watch the Amigobulls National Oilwell Varco stock analysis video here. Our analyst opinion covering the buy and sell arguments for NOV stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

National-Oilwell Varco, Inc. Stock Rating 2.1/5

Amigobulls NOV stock analysis uses latest quarter 2017 Q4 financial data like National Oilwell Varco revenue growth, profit margins and cash flows. National Oilwell Varco valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at National Oilwell Varco stock rating which is indicative of the company's financial performance.

Should you buy NOV stock?

  • With its debt/equity ratio of  0.19, National Oilwell Varco has a lower debt burden when compared to the Oils-Energy average.
  • The company has a good Free Cash Flow (FCF) margin of 13%.

Should you sell NOV stock?

  • Revenue declined at a CAGR of -18.3% over the last 5 years.
  • National Oilwell Varco registered a negative operating margin of -3.8% (average) over the Trailing Twelve Months (TTM).
  • National Oilwell Varco posted an average Net loss of -3.2% in the last twelve months.
  • The lack of profits renders the PE ratio useless for NOV stock.
  • The company has a negative Return on Invested Capital of -1%, which is a red flag.
  • A negative ROE of -1.7% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and National Oilwell Varco stock

Investors can make use of the Amigobulls National Oilwell Varco stock analysis to ascertain how NOV stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

National Oilwell Varco revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of NOV technical analysis to check whether the fundamental story is reflected in the market sentiment.