NOV Inc (NOV, Financial), a leading supplier in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 35.51%, from a modestly undervalued position three months ago to a fairly valued position today, according to the GF Value. This article will delve into the factors behind this impressive performance and provide an in-depth analysis of the company's profitability, growth, and market position.
Stock Performance Analysis
NOV Inc's stock has been on a steady upward trajectory over the past three months, with a gain of 35.51%. The stock's current price stands at $21.49, with a market cap of $8.46 billion. The GF Value, a measure of a stock's intrinsic value as defined by GuruFocus.com, is currently at $21.07, indicating that the stock is fairly valued. This is a significant improvement from three months ago when the stock was modestly undervalued with a GF Value of $19.78.
Profitability Overview
NOV Inc's profitability rank stands at 4/10, indicating moderate profitability. The company's operating margin of 6.54% is better than 44.41% of companies in the same industry. Furthermore, the company's ROE, ROA, and ROIC, which measure the company's profitability in relation to its equity, assets, and invested capital respectively, are better than half of the companies in the industry. Over the past 10 years, the company has been profitable for 3 years, which is better than 33.12% of companies.
Growth Prospects
Despite its moderate profitability, NOV Inc's growth prospects are relatively low, with a growth rank of 1/10. However, the company's 3-year and 5-year revenue growth rates per share are better than 20.65% and 23.32% of companies respectively. Looking ahead, the company's future total revenue growth rate and EPS growth rate are better than 75.1% and 93.85% of companies respectively, indicating potential for future growth.
Major Stock Holders
The top three holders of NOV Inc's stock are First Eagle Investment (Trades, Portfolio), Richard Pzena (Trades, Portfolio), and HOTCHKIS & WILEY, holding 9.4%, 9.34%, and 5.94% of the company's shares respectively. These major stakeholders' continued confidence in the company's prospects may be a positive sign for potential investors.
Competitive Landscape
NOV Inc operates in a competitive market, with major competitors including ChampionX Corp (CHX, Financial) with a market cap of $7.21 billion, TechnipFMC PLC (FTI, Financial) with a market cap of $9.25 billion, and Weatherford International PLC (WFRD, Financial) with a market cap of $6.76 billion. Despite the competition, NOV Inc's recent stock performance and growth prospects indicate that it is well-positioned in the market.
Conclusion
In conclusion, NOV Inc's impressive stock performance over the past three months, coupled with its moderate profitability and promising growth prospects, make it a stock to watch. While the company faces stiff competition in the Oil & Gas industry, its strong market position and the confidence of major stakeholders suggest that it is well-equipped to navigate these challenges. Investors should keep a close eye on this stock as it continues to make waves in the market.
