National Oilwell Varco
What Fools say:
Fools love their oil and gas equipment and services companies. The more exposure to the deepwater market, the better, but enthusiasm stretches across the entire spectrum:
Market Cap (billions) |
CAPS Rating |
Bull Ratio |
|
---|---|---|---|
National Oilwell Varco |
$25.9 |
97% |
|
Weatherford International |
$21.5 |
94% |
|
Smith International |
$14.0 |
94% |
|
Cameron International |
$11.2 |
98% |
What management says:
NOV management has already given us a heads-up when it comes to quarterly performance. Last quarter, it definitively stated that backlog will grow. Backlog reveals quite a lot about this company's ferocious growth. In rig technology, the largest segment, about two-thirds of revenue comes out of backlog orders. Management's comments, then, are about as close as you'll get to a guarantee of ongoing growth.
What management does:
Forgive NOV for swaggering -- its margins just keep chugging higher. For all the skeptics of growth via acquisition, this firm might lead you to reconsider your position. After 140 acquisitions over 10 years, there's no arguing with the success of the strategy:
3/06 |
6/06 |
9/06 |
12/06 |
3/07 |
6/07 |
|
---|---|---|---|---|---|---|
Gross |
22.0% |
22.8% |
23.8% |
25.1% |
26.4% |
27.5% |
Operating |
12.0% |
13.4% |
14.4% |
15.9% |
17.5% |
18.9% |
Net |
7.0% |
7.9% |
8.6% |
9.7% |
10.9% |
12.0% |
One Fool says:
Remember when Schlumberger
As was the case with Transocean
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