Notes 2/3/2016... National Oilwell Varco:
This is 2 year buy and hold.
Other oil service companies, especially drillers and well head service companies, have large fleets of equipment that need to be maintained. By contrast, NOV is in the business of manufacturing that equipment. So the company has little equipment maintenance. This is a big advantage during tough times.
The company has a large build of inventory that has eaten into the company's cash so far this year. It can still generate enough cash to more than cover its capital spending and its dividend. With $1.85 billion in cash on the balance sheet, there is more than enough to cover and cash shortfall.
NOV still has a pretty healthy balance sheet. It has repurchased $3 billion worth of the company's stock over the last year.
52-Week High (Apr 15, 2015): 56.64
52-Week Low (Feb 3, 2016): 26.10
50-Day Moving Average: 31.88
200-Day Moving Average: 37.20
Book Value Per Share (mrq): 48.24
Total Cash (mrq): 1.85B
PEG Ratio (5 yr expected)1: -1.00 ****The lower the PEG ratio, the more the stock may be undervalued given its earnings performance.
Market Cap (intraday): 10.61B
Enterprise Value (Feb 4, 2016): 12.66B
Trailing P/E (ttm, intraday): 8.34
Forward P/E (fye Dec 31, 2016)1: 19.07
While the oil market struggles, NOV has delivered the follow:
Gross Profit (ttm): 5.81B
Revenue (ttm): 17.74B
Revenue Per Share (ttm): 44.25
Return on Assets (ttm): 4.53%
Return on Equity (ttm): 6.79%
Profit Margin (ttm): 7.60%
Operating Margin (ttm): 13.04%
National Oilwell Varco, Inc. provides equipment and components that are used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company operates through the following segments: Rig Systems, Rig Aftermarket, Wellbore Technologies, Completion and Production Solutions. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the drilling process and rig functionality. The Rig Aftermarket segment provides spare parts, repair, and rentals as well as technical support, field service and first well support, field engineering, and customer training through a network of aftermarket service and repair facilities strategically located in major areas of drilling operations. The Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance. The Completion and Production Solutions segment integrates technologies for well completions and oil and gas production. National Oilwell Varco was founded in 1841
and is headquartered in Houston, TX.