National Story

<div class='circular--portrait' style='background:#754DEB;color: #F0FFF0;font-size:4em;'>NO</div>
NOV -- USA Stock  

USD 14.55  1.12  8.34%

As many of us are excited about energy space, it is fair to focus on National Oilwell Varco. We will check why this entity may not get much respect from sophisticated investors given the current market uncertainty. Is the entity valuation justified? Here we go over the stock perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
View all stories for National Oilwell | View All Stories
Should I rely on National Oilwell management in November 2020?
National Oilwell Varco has 2.78 B in debt with debt to equity (D/E) ratio of 0.5, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. National Oilwell has an asset utilization ratio of 29.15 percent. This indicates that the company is making $0.29 for each dollar of assets. An increasing asset utilization means that National Oilwell Varco is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of National Oilwell Varco using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of National Oilwell Varco based exclusively on its fundamental and basic technical indicators. By analyzing National Oilwell's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of National Oilwell's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of National Oilwell. We calculate exposure to National Oilwell's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to National Oilwell's related companies.

National Oilwell Varco Investment Alerts

National investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring National Oilwell Varco performance across your portfolios.Please check all investment alerts for National

National Oilwell Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare National value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across National Oilwell competition to find correlations between indicators driving the intrinsic value of National.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for National Oilwell, but it might be worth checking our own buy vs. sell analysis

A Deeper look at National

The entity reported the last year's revenue of 7.79 B. Reported Net Loss for the year was (2.77 B) with profit before taxes, overhead, and interest of 845 M.

Margins Breakdown

National profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or National Oilwell itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of National Oilwell profit margins.
Operating Margin(76.0)
EBITDA Margin(0.7)
Gross Margin0.14
Profit Margin(0.74)


National Oilwell Net Income Per Employee is decreasing over the last 8 years. Moreover, National Oilwell Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment.

Analysis of National Oilwell Varco

The market risk adjusted performance is down to 0.58 as of today. As of the 26th of October, National Oilwell secures the risk adjusted performance of (0.12), and Mean Deviation of 2.35. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of National Oilwell Varco, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for National Oilwell, which can be compared to its peers in the industry. Please verify National Oilwell Varco information ratio and downside variance to decide if National Oilwell Varco is priced some-what accurately, providing market reflects its recent price of 8.93 per share. Given that National Oilwell Varco has jensen alpha of (0.35), we recommend you to check National Oilwell's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On National Oilwell

While some other firms in the oil & gas equipment & services industry are either recovering or due for a correction, National may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 26th of October 2020, our latest 30 days recommendation on the venture is Strong Sell. However, we believe National Oilwell is undervalued with close to average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of National Oilwell Varco. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com