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NOV
(NYSE:NOV)
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Rating:58Neutral
Price Target:
$19.50
â–¼(-3.61% Downside)
Action:Reiterated
Date:08/18/26
NOV scores as a mid-range setup: the biggest driver is weakening financial performance (sharp TTM revenue and margin decline) despite a stable balance sheet and positive TTM free cash flow. Technicals are supportive with price above major moving averages and positive momentum, but valuation is a clear headwind given the very high P/E. The earnings call adds moderate support via improving outlook and reiterated cash conversion targets, tempered by one-time benefits, recent negative quarterly free cash flow, and regional/logistical uncertainty.
Positive Factors
Manageable Leverage
NOV’s moderate and relatively stable leverage provides financial flexibility through the industry cycle. A sizable equity base relative to assets can support investment, customer programs, and shareholder returns while reducing balance-sheet stress during periods of weaker drilling activity.
Negative Factors
Sharp Profitability Deterioration
The steep decline in revenue and margins shows that NOV’s current earnings power is materially weaker than in recent prior years. Lower profitability reduces internally funded investment and leaves less room to absorb pricing pressure, project delays, or continued softness in customer capital spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable Leverage
NOV’s moderate and relatively stable leverage provides financial flexibility through the industry cycle. A sizable equity base relative to assets can support investment, customer programs, and shareholder returns while reducing balance-sheet stress during periods of weaker drilling activity.
Read all positive factors
NOV (NOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.76B
Dividend Yield2.26%
Average Volume (3M)3.34M
Price to Earnings (P/E)74.1
Beta (1Y)0.70
Revenue Growth-1.63%
EPS Growth-78.44%
CountryUS
Employees31,605
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.26
Shares Outstanding356,478,120
10 Day Avg. Volume3,199,254
30 Day Avg. Volume3,335,851
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.93
Price to Sales (P/S)0.66
P/FCF Ratio6.73
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit4.47
Enterprise Value/Ebitda10.14
Forecast
1Y Price Target
$21.92Price Target Upside8.34% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.92
Revenue Forecast (FY)$8.68B
NOV Business Overview & Revenue Model
Company Description
NOV Inc. is a global leader in designing, manufacturing, and marketing essential systems, components, and products for the oil and gas drilling and production industries, as well as for industrial and renewable energy sectors worldwide. The compan...
How the Company Makes Money
NOV primarily makes money by selling engineered equipment, systems, and related aftermarket services to customers across the oil and gas value chain. Key revenue streams include: (1) New equipment and systems sales: NOV manufactures and sells capi...
NOV Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed an overall positive trajectory: sequential revenue and margin improvement, record or near‑record performance in several businesses (notably subsea flexible pipe, Energy Equipment margins, and drill bits), strong bookings in key capital and rental businesses, and continued cost and operational initiatives. These positives are tempered by a material one‑time tariff benefit, negative free cash flow for the quarter, elevated tariffs and inventory, ongoing Middle East logistical and activity uncertainty, and capacity/order timing constraints that keep some recovery deferred into late 2026 and 2027. On balance management expects a broadening market recovery and higher earnings power going forward.Positive Updates
Consolidated Revenue and Profitability
Q2 FY26 revenue of $2.13 billion (up 4% sequentially, down ~2% YoY). Net income $112 million ($0.31 per diluted share). Adjusted EBITDA $283 million (13.3% of sales); excluding a ~$40 million AIPA tariff refund benefit adjusted EBITDA was $243 million.
Negative Updates
One‑time Tariff Benefit and Elevated Tariff Expense
Q2 included a ~$40 million AIPA tariff refund benefit (approximately $26M allocated to EPS and remainder to EE); only ~$17 million was collected in the quarter. Tariff expense rose ~ $20 million YoY (from ~$10M in Q2 2025 to ~$30M in Q2 2026), making part of the quarter's outperformance non‑recurring.
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Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Profitability
Q2 FY26 revenue of $2.13 billion (up 4% sequentially, down ~2% YoY). Net income $112 million ($0.31 per diluted share). Adjusted EBITDA $283 million (13.3% of sales); excluding a ~$40 million AIPA tariff refund benefit adjusted EBITDA was $243 million.
Read all positive updates
Company Guidance
NOV guided to sequential and year‑over‑year revenue growth in Q3 (with no AIPA tariff refunds assumed), while reiterating company-level 2026 targets of converting roughly 40%–50% of EBITDA to free cash flow, capital expenditures of $340M–$370M and an annual effective tax rate of 34%–36%. Segment guidance for Q3: Energy Equipment revenue -1% to -3% year‑over‑year with EBITDA of $160M–$190M; Energy Products & Services revenue +5% to +7% year‑over‑year with EBITDA of $130M–$150M. Management expects full‑year 2026 book‑to‑bill to be near 90%–100% (with meaningful improvement in 2027), assumes the Middle East operating environment remains similar to Q2 (the region is ~15% of company revenue and a worse‑than‑expected outcome could swing EBITDA by roughly $20M–$25M), and reaffirmed that Q2 results (revenue $2.13B; adjusted EBITDA $283M) form the baseline for these expectations.NOV Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.64B | 8.74B | 8.87B | 8.58B | 7.24B | 5.52B |
| Gross Profit | 1.77B | 1.77B | 2.01B | 1.83B | 1.33B | 774.00M |
| EBITDA | 782.00M | 818.00M | 1.26B | 1.00B | 617.00M | 153.00M |
| Net Income | 96.00M | 145.00M | 635.00M | 993.00M | 155.00M | -250.00M |
Balance Sheet | ||||||
| Total Assets | 11.20B | 11.29B | 11.36B | 11.29B | 10.13B | 9.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 1.55B | 1.23B | 816.00M | 1.07B | 1.59B |
| Total Debt | 2.33B | 2.34B | 2.39B | 2.38B | 2.37B | 2.39B |
| Total Liabilities | 4.94B | 4.97B | 4.93B | 5.05B | 5.00B | 4.49B |
| Stockholders Equity | 6.21B | 6.27B | 6.38B | 6.17B | 5.10B | 5.00B |
Cash Flow | ||||||
| Free Cash Flow | 562.00M | 864.00M | 953.00M | -140.00M | -393.00M | 90.00M |
| Operating Cash Flow | 916.00M | 1.24B | 1.30B | 143.00M | -179.00M | 291.00M |
| Investing Cash Flow | -314.00M | -362.00M | -471.00M | -293.00M | -238.00M | -196.00M |
| Financing Cash Flow | -514.00M | -584.00M | -406.00M | -103.00M | -96.00M | -189.00M |
NOV Technical Analysis
Positive
20.23
Price Trends
20.06
Negative
19.80
Negative
19.40
Negative
Market Momentum
-0.31
Negative
48.84
Neutral
70.09
Neutral
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 20.23 is above the 20-day moving average (MA) of 19.05, above the 50-day MA of 20.06, and above the 200-day MA of 19.40, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOV.
NOV Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $27.45B | 23.89 | 35.29% | 0.29% | 8.77% | 35.66% | |
71 Outperform | $55.24B | 17.83 | 16.25% | 1.64% | 0.42% | 1.75% | |
70 Outperform | $74.18B | 24.57 | 11.84% | 2.29% | 2.34% | -29.38% | |
69 Neutral | $5.77B | 15.18 | 22.39% | 1.26% | -5.65% | 0.77% | |
67 Neutral | $27.98B | 14.22 | 18.44% | 2.00% | 1.53% | 58.46% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $6.76B | 74.12 | 1.53% | 2.26% | -1.63% | -78.44% |
* Energy Sector Average
NOV
NOV
18.76
4.99
36.27%
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FTI
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SLB
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WFRD
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81.18
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16.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.