Company Reports

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. It competes with the Big Three in many end markets, but its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers in both onshore and offshore markets. It's maintained majority market share for two decades, controlling over half the market.

NOV delivered solid 2024 first-quarter results as international markets outweighed a tepid North America business, a trend we expect to continue through 2024. Yet, both revenue and EBITDA figures came in significantly higher year over year, with revenue up 11% while EBITDA grew nearly 24%. After incorporating the quarterly results, we maintain our $22 fair value estimate and no-moat rating.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. It competes with the Big Three in many end markets, but its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers in both onshore and offshore markets. It's maintained majority market share for two decades, controlling over half the market.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. It competes with the Big Three in many end markets, but its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers in both onshore and offshore markets. It's maintained majority market share for two decades, controlling over half the market.

NOV closed out 2023 on strong footing with fourth-quarter revenue up 7% sequentially and a slightly expanded adjusted EBITDA margin of 12.5%. Profitability fell approximately in line with management guidance, while top-line growth blew past the high end of guidance due to significant outperformance in the completion and production solutions segment and rig technologies segment. Sequential sales growth of the completion and production solutions segment and the rig technologies segment was 6% and 12%, respectively, compared with guidance high ends of 4% and 3%, respectively. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look, we maintain our no-moat rating and $23 fair value estimate.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. It competes with the Big Three in many end markets, but its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers in both onshore and offshore markets. It's maintained majority market share for two decades, controlling over half the market.

NOV delivered solid third-quarter results, almost entirely driven by its offshore operations, which represent a bit under half of the firm’s overall business. This offsets adverse impacts from comparatively sluggish North American land markets, which we expect will remain subdued into early 2024. Revenue and adjusted EBITDA margin each expanded sequentially by 4% and 50 basis points, respectively. We maintain our no-moat rating and $23 fair value estimate following the results.

NOV posted solid second-quarter results as strong investment in international and offshore markets offset a softened North American land market. NOV’s operations are approximately evenly split between onshore and offshore production as well as North American and international end markets. We expect the prevailing industry dynamics will persist through year-end, setting the stage for strong 2023 operating performance that will likely improve when North American activity rebounds (expected in early 2024). We maintain our no-moat rating and $23 fair value estimate following results.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. It competes with the Big Three in many end markets, but its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers in both onshore and offshore markets. It's maintained majority market share for two decades, controlling over half the market.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. While NOV competes with the Big Three in many end markets, its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers, holding a majority market share over the last two decades. It still controls over half the market today.

NOV's first-quarter revenue reflected typical seasonal declines in oil and gas production activity against an overall strengthening market. Total revenue approached $2 billion, increasing 27% year over year but declining 5% sequentially. Profitability demonstrated a similar outcome, expanding over 300 basis points year over year and contracting 100 basis points quarter over quarter. We'll incorporate the firm's full financial and operating results shortly, but for now, we maintain our no-moat rating and $23 fair value estimate.

NOV posted solid fourth-quarter results, reflecting the strengthening demand and pricing power that developed throughout 2022. Following results, we’re slightly raising our fair value estimate to $23 from $22, and we maintain our no-moat rating and stable moat trend. Total revenue increased 10% quarter over quarter and nearly 40% year over year, mostly driven by elevated activity throughout North America. We expect moderating activity growth in North America will be offset by accelerating activity growth in international markets, particularly the Middle East. Revenue growth from international markets already outpaced North America in the fourth quarter.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. While NOV competes with the Big Three in many end markets, its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers, holding a majority market share over the last two decades. It still controls over half the market today.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. While NOV competes with the Big Three in many end markets, its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers, holding a majority market share over the last two decades. It still controls over half the market today.

NOV’s third-quarter results reflect strong oil and gas production activity despite persistent supply chain disruptions weighing on operational results. Total revenue grew 9% quarter over quarter and 41% year over year, while the companywide operating margin held steady at 3%. We’re raising our fair value estimate slightly to $22 per share from $20 following results. Our no moat and stable moat trend ratings and Morningstar Uncertainty Rating of Very High are unchanged.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. While NOV competes with the Big Three in many end markets, its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers, holding a majority market share over the last two decades. It still controls over half the market today.

NOV posted solid second-quarter results thanks to a favorable operating environment fostered by high demand for oil and gas equipment. Our no-moat rating, stable moat trend, and $20 fair value estimate are unchanged following the results.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. While NOV competes with the Big Three in many end markets, its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers, holding a majority market share over the last two decades. It still controls over half the market today.

After taking a fresh look at NOV, we’re lowering our fair value estimate to $20 per share from $28 and maintaining our no-moat and stable moat trend ratings. Persistent inventory overcapacity in oilfield services continues to suppress demand for NOV’s equipment. We now estimate average revenue growth of 12% over the next five years. We forecast operating margins will reach 9% by midcycle, compared with our prior estimate of 14%. We still expect NOV will improve its profitability over the next few years as it incorporates rightsizing initiatives, but we think its diversification into more of a generalist oilfield-services provider will cap margin expansion, given high price competition. However, a more diverse revenue mix will ensure growth opportunities in other end markets, like wellbore technologies and completion and production solutions, while reducing NOV’s reliance on rig technologies, typically a capital-intensive space.

NOV is the fourth-largest diversified oilfield-services supplier after Schlumberger, Halliburton, and Baker Hughes. While NOV competes with the Big Three in many end markets, its significant presence in equipment manufacturing sets it apart. NOV is the largest original equipment manufacturer of rig systems for oilfield-services providers, holding a majority market share over the last two decades. It still controls over half the market today.