NOV (NOV) AI Stock Analysis

• Market Cap: $5.14B
• Dividend Yield: 3.66%
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.84
• Revenue Growth: -1.21%
• EPS Growth: -54.44%
• Country: US
• Employees: 34,010
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.32
• Shares Outstanding: 371,364,750
• 10 Day Avg. Volume: 3,112,152
• 30 Day Avg. Volume: 3,689,733
• PEG Ratio: -0.25
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.01
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 6.97
• 1Y Price Target: $15.10
• Price Target Upside: 8.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: $14.50 ▲(3.94% Upside)

NOV's overall stock score reflects a solid financial performance with strong profitability and leverage metrics, balanced by a cautious outlook due to recent revenue declines and market challenges. The attractive valuation and dividend yield are positive factors, while technical indicators suggest neutral momentum. Mixed sentiment from the earnings call highlights both opportunities and risks.

Positive Factors

Strong Cash Flow Generation

The ability to generate strong free cash flow indicates efficient operations and provides flexibility for reinvestment, debt reduction, or shareholder returns.

Record Revenues in Key Segments

Record revenues in these segments suggest robust demand and competitive positioning, supporting long-term growth prospects and market leadership.

Consistent Margin Growth

Sustained margin growth reflects operational efficiency and pricing power, enhancing profitability and competitive advantage over time.

Negative Factors

Decline in Aftermarket Sales

A decline in aftermarket sales can weaken revenue stability and margin sustainability, as these services typically offer higher profitability.

Impact of Tariffs and Inflation

Rising tariff and inflation costs can erode margins and profitability, posing long-term challenges to cost management and pricing strategies.

Challenges in Key Markets

Decreased drilling activity in key markets can limit growth opportunities and revenue potential, affecting long-term business stability.

NOV Business Overview & Revenue Model

Company Description

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors worldwide. The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. It also provides solids control and waste management equipment and services; portable power generation products; drill and wired pipes; drilling optimization and automation services; tubular inspection, repair, and coating services; instrumentation; measuring and monitoring services; downhole and fishing tools; steerable technologies; and drill bits. The company offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers. It also provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems. NOV Inc. offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training. The company was formerly known as National Oilwell Varco, Inc. and changed its name to NOV Inc. in January 2021. NOV Inc. was founded in 1862 and is based in Houston, Texas.

How the Company Makes Money

NOV generates revenue primarily through the sale of its equipment and technology products to oil and gas operators, as well as through the provision of services across the drilling and production lifecycle. Key revenue streams include the manufacturing and sale of drilling rigs, completion systems, and wellbore technologies, alongside service contracts for maintenance and support. The company also benefits from aftermarket sales, providing spare parts and services that are essential for operational efficiency. Additionally, NOV has strategic partnerships with major oilfield service companies and operators, enhancing its market reach and creating opportunities for joint ventures that contribute to its earnings.

NOV Financial Statement Overview

Summary

NOV demonstrates a strong financial recovery and growth trajectory across key metrics, with notable improvements in profitability margins and leverage. The balance sheet remains solid, supporting operational stability. Cash flow has improved significantly, although further enhancements in cash conversion efficiency are needed. The company is well-positioned but should monitor recent revenue and income trends for sustained growth.

Income Statement

The income statement shows a strong recovery and growth trajectory. The TTM data indicates a Gross Profit Margin of 21.1% and a Net Profit Margin of 5.4%. Revenue growth has been positive, with a 21.8% increase from 2021 to 2024, despite a slight decline in the most recent TTM period. EBIT and EBITDA margins have improved significantly over the years, reflecting operational efficiency. However, the recent decline in revenue and net income poses a potential concern.

Balance Sheet

The balance sheet is robust with a Debt-to-Equity Ratio of 0.36, indicating a healthy leverage position. Return on Equity in the TTM period is 7.2%, showing profitability improvement. The Equity Ratio stands at 57.7%, highlighting financial stability. However, total assets and stockholders' equity have grown modestly, which may limit future expansion potential.

Cash Flow

Cash flow analysis reveals a positive shift in free cash flow, with a substantial recovery from negative figures in 2022 to positive in the TTM period. The Operating Cash Flow to Net Income Ratio is strong at 2.71, indicating efficient cash generation. However, the Free Cash Flow to Net Income Ratio of 1.93 suggests room for improvement in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.78B	8.87B	8.58B	7.24B	5.52B	6.09B
Gross Profit	1.80B	2.01B	1.83B	1.33B	774.00M	434.00M
EBITDA	863.00M	1.26B	1.00B	617.00M	153.00M	-2.34B
Net Income	383.00M	635.00M	993.00M	155.00M	-245.00M	-2.54B
Balance Sheet
Total Assets	11.34B	11.36B	11.29B	10.13B	9.55B	9.93B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.23B	816.00M	1.07B	1.59B	1.69B
Total Debt	1.82B	2.39B	2.38B	2.37B	2.39B	2.56B
Total Liabilities	4.83B	4.93B	5.05B	5.00B	4.49B	4.65B
Stockholders Equity	6.51B	6.38B	6.17B	5.13B	5.06B	5.28B
Cash Flow
Free Cash Flow	877.00M	953.00M	-140.00M	-393.00M	90.00M	700.00M
Operating Cash Flow	1.27B	1.30B	143.00M	-179.00M	291.00M	926.00M
Investing Cash Flow	-429.00M	-471.00M	-293.00M	-238.00M	-196.00M	-144.00M
Financing Cash Flow	-622.00M	-406.00M	-103.00M	-96.00M	-189.00M	-259.00M

NOV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOV, the sentiment is Positive. The current price of 13.95 is above the 20-day moving average (MA) of 13.23, above the 50-day MA of 13.06, and above the 200-day MA of 13.18, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOV.

NOV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	―	$15.97B	17.70	28.72%	0.53%	11.73%	45.70%
BKR	―	$46.63B	16.29	16.83%	1.84%	1.51%	30.09%
SLB	―	$53.53B	13.85	15.46%	3.12%	-2.13%	-16.76%
WFRD	―	$5.05B	12.71	27.88%	1.49%	-10.19%	-23.74%
HAL	―	$22.64B	17.58	12.77%	2.54%	-4.06%	-47.41%
NOV	―	$5.14B	11.37	7.31%	3.66%	-1.21%	-54.44%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

NOV Corporate Events

NOV Inc. Earnings Call: Balancing Growth and Challenges

The recent earnings call from NOV Inc. revealed a mixed sentiment, balancing between positive developments and notable challenges. While the company celebrated revenue growth, successful share repurchases, and advancements in digital automation, these were tempered by declines in drilling activity, rising tariff expenses, and market difficulties. Overall, the sentiment was neutral, reflecting both the highlights and lowlights discussed during the call.

NOV Inc. Reports Mixed Q2 2025 Financial Results

NOV Inc., a leading provider of technology-driven solutions for the energy industry, reported its financial results for the second quarter of 2025, showcasing its efforts to navigate a challenging market environment. The company is known for its innovations that enhance oilfield operations and support the energy transition towards sustainability.