Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

NOV's backlog will provide a cushion through 2015 as its customers adjust to sharply lower prices, moderating the full impact of decreased orders this year.
NOV has made key acquisitions in the offshore production space to expand its leadership position in floating production and subsea flexible pipe systems.
The installed base of NOV equipment, combined with the reach of its global repair and maintenance facilities, will provide a growing stream of revenue from aftermarket services. Read more 

Bears Say

The weak market fundamentals compound the oversupply of deep-water drilling rigs, suggesting that it could be a long while before NOV's core drilling systems segment sees high revenue growth again.
NOV’s growth strategy depends on acquisitions. Such a strategy has little room for error as there can be numerous pitfalls, including integration challenges, unanticipated business conditions, and the threat of write-downs.
Petrobras’ decision to limit the number of rigs it imports in the future constrains the level of NOV’s recurring orders from the world’s largest deep-water driller. Read more 

Management

National Oilwell Varco has a strong record of capital allocation, having navigated not only the ups and downs of the highly cyclical oil industry, but also the financial and operational challenges that stem from hundreds of acquisitions. However, over   Read more 

Profile

National Oilwell Varco is a leading supplier of drilling rig equipment and products consumed in the process of oil and gas drilling, such as downhole tools, drill pipe,   Read more 

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