Education
About Us
Working with TipRanks
Follow Us
NOV (NOV)
NYSE:NOV
Top Page
NOV
(NYSE:NOV)
Rating:70Outperform
Price Target:
$13.50
â–²(9.76%Upside)
Positive Factors
Earnings
Stock jumped 13% on better than expected margin and free cash flow outlook.
Market Expansion
Growing international onshore adoption of unconventional drilling and completion techniques creating additional avenues for growth across their portfolio.
Shareholder Returns
Management affirmed its commitment to distribute 50% of future free cash flow to shareholders through a combination of regular and supplemental dividends and opportunistic share buybacks.
Negative Factors
Earnings Outlook
NOV expects third quarter and beyond to be challenging with a possible decline in industry activity.
Financial Performance
NOV underperformed the OIH by approximately 250 basis points after guiding second quarter and 2025 EBITDA below consensus.
Industry Activity
NOV expects the industry activity to get 'tougher, perhaps much tougher' with a likely decline.
NOV (NOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.62B
Dividend Yield2.47%
Average Volume (3M)3.84M
Price to Earnings (P/E)8.2
Beta (1Y)0.76
Revenue Growth0.54%
EPS Growth-39.88%
CountryUS
Employees34,010
SectorEnergy
Sector Strength45
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding375,738,430
10 Day Avg. Volume3,240,417
30 Day Avg. Volume3,843,767
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio4.08
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit2.77
Enterprise Value/Ebitda1.24
Forecast
1Y Price Target
$15.69Price Target Upside27.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
NOV Business Overview & Revenue Model
Company DescriptionNOV Inc., previously known as National Oilwell Varco, is a prominent provider within the oil and gas industry. The company offers an extensive range of equipment and components used in oil and gas drilling and production, oilfield services, and supply chain integration services to the upstream oil and gas industry. NOV operates through three segments: Rig Technologies, Wellbore Technologies, and Completion & Production Solutions, providing a comprehensive suite of products and services across the entire lifecycle of oil and gas operations.
How the Company Makes MoneyNOV Inc. generates revenue primarily through the sale and rental of equipment and technologies essential for oil and gas drilling and production. The Rig Technologies segment contributes significantly to revenue by providing capital equipment and integrated systems for drilling rigs. The Wellbore Technologies segment earns income by supplying a wide array of tools and technologies for drilling and formation evaluation, while the Completion & Production Solutions segment focuses on equipment and technologies for well completion, stimulation, and production optimization. NOV also benefits from service contracts, aftermarket sales, and repair services, which provide recurring revenue. Strategic partnerships with oil and gas operators and ongoing investments in technology and innovation further support NOV's revenue streams.
NOV Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 0.49%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a company that is performing well in certain areas, such as EBITDA growth, cash flow, and offshore production, while facing significant challenges from tariffs, macroeconomic uncertainty, and specific market declines. The company is making strategic adjustments to mitigate these challenges, but the outlook is cautious.Q1-2025 Updates
Positive Updates
Improved EBITDA and Cash Flow
NOV reported an EBITDA of $252 million for Q1 2025, marking a 5% increase. EBITDA margins expanded by 80 basis points to 12%, with 14 consecutive quarters of year-over-year margin improvement. Additionally, NOV generated $135 million in cash from operations and $51 million in free cash flow.
Strong Performance in Energy Equipment Segment
The Energy Equipment segment increased margins by 430 basis points to 14.4% of sales, driven by high-margin backlog and operational efficiencies. Bookings for the quarter increased by 12% year-over-year, with a backlog of $4.41 billion, up 12% from Q1 2024.
Offshore Production Outlook
The outlook for offshore production remains robust, with 2025 potentially having more awards for FPSOs than previous years. NOV's subsea flexible pipe business and Process Systems continue to show strong performance, with significant revenue growth and improved margins.
Strategic Positioning and Product Innovation
NOV introduced new products that improve efficiency, safety, and environmental impact, gaining significant market share. The company is well-positioned to supply technologies needed for deepwater and international shales, anticipating future industry trends.
Negative Updates
Revenue Decline in Energy Product and Services Segment
The Energy Product and Services segment saw a 2% revenue decrease due to lower global activity, with EBITDA declining $29 million to $145 million. The sales mix was less favorable, leading to higher decrementals.
Tariff and Macroeconomic Challenges
Emerging trade wars and tariff impacts pose risks, with anticipated tariff expenses of $8 million to $10 million in Q2 2025, increasing to approximately $15 million per quarter thereafter. The broader macroeconomic uncertainty and potential lower oilfield activity are concerns.
Challenges in North American and Specific International Markets
Lower commodity prices and macroeconomic headwinds have North American E&Ps running downside scenarios. Activity is most at risk in North America, Mexico, and Saudi Arabia conventional activity.
Decrease in Aftermarket Revenue
Aftermarket revenues declined 11% year-over-year in the Drilling Equipment business, driven by lower spare parts bookings and some delays in recertification projects.
Company Guidance
During the Q1 2025 earnings call, NOV Inc. reported several key metrics and provided guidance for the upcoming quarters. The company recorded revenues of $2.1 billion and a net income of $73 million, translating to $0.19 per fully diluted share. Adjusted EBITDA was $252 million, representing 12% of sales, an increase of 80 basis points year-over-year. The Energy Equipment segment improved its margins by 430 basis points compared to Q1 2024, driven by strong demand for deepwater production equipment and cost reductions. However, the Energy Products and Services segment faced margin pressures due to a decline in drilling-related capital equipment sales, despite outperforming a 5% reduction in global drilling activity. Looking ahead, NOV expects modest sequential growth in revenues and EBITDA for Q2 2025 but anticipates potential challenges in the latter half of the year due to macroeconomic headwinds, including an emerging trade war and OPEC's decision to increase oil supply. The company remains focused on operational efficiencies and cost management to navigate these uncertainties.NOV Financial Statement Overview
Summary
NOV demonstrates a strong financial position with significant improvements in revenue growth, profitability, and cash flow generation. The income statement shows increased revenues and improved profit margins. The balance sheet is solid with manageable debt levels, and the cash flow statement indicates strong cash generation.Income Statement
The income statement shows a strong recovery with a consistent increase in total revenue over the years. Gross Profit Margin for TTM is approximately 24.15%, indicating robust cost management. The Net Profit Margin improved significantly from negative values in 2020 to 6.68% in TTM, reflecting improved profitability. EBIT and EBITDA margins are healthy at 11.31% and 12.96% respectively, suggesting effective operational efficiency.75
Positive
Balance Sheet
The balance sheet is solid with a Debt-to-Equity Ratio of 0.37, showing manageable leverage levels. The Return on Equity (ROE) for TTM is 9.07%, which is a positive indicator of profitability relative to equity. The Equity Ratio is stable at 57.61%, indicating a strong equity base relative to total assets.70
Positive
Cash Flow
Cash flow statements indicate strong free cash flow generation with a Free Cash Flow to Net Income Ratio of 1.95 in TTM, showing efficient cash management. The Operating Cash Flow to Net Income Ratio is 2.58, highlighting strong cash generation from operations. Free Cash Flow has grown significantly compared to previous years.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.82B | 8.87B | 8.58B | 7.24B | 5.52B | 6.09B | Gross Profit |
| 2.13B | 2.01B | 1.83B | 1.33B | 774.00M | 434.00M | EBIT |
| 997.00M | 876.00M | 651.00M | 264.00M | -153.00M | -534.00M | EBITDA |
| 1.22B | 1.26B | 1.00B | 617.00M | 153.00M | -2.34B | Net Income Common Stockholders |
| 589.00M | 635.00M | 993.00M | 155.00M | -245.00M | -2.54B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.16B | 1.23B | 816.00M | 1.07B | 1.59B | 1.69B | Total Assets |
| 11.27B | 11.36B | 11.29B | 10.13B | 9.55B | 9.93B | Total Debt |
| 2.37B | 2.39B | 2.38B | 2.37B | 2.39B | 2.56B | Net Debt |
| 1.22B | 1.16B | 1.56B | 1.30B | 797.00M | 864.00M | Total Liabilities |
| 4.78B | 4.93B | 5.05B | 5.00B | 4.49B | 4.65B | Stockholders Equity |
| 6.44B | 6.38B | 6.17B | 5.13B | 5.06B | 5.28B |
| Cash Flow | Free Cash Flow | ||||
| 1.15B | 953.00M | -140.00M | -393.00M | 90.00M | 700.00M | Operating Cash Flow |
| 1.52B | 1.30B | 143.00M | -179.00M | 291.00M | 926.00M | Investing Cash Flow |
| -241.00M | -471.00M | -293.00M | -238.00M | -196.00M | -144.00M | Financing Cash Flow |
| -584.00M | -406.00M | -103.00M | -96.00M | -189.00M | -259.00M |
NOV Technical Analysis
Negative
12.30
Price Trends
13.00
Negative
13.93
Negative
14.95
Negative
Market Momentum
-0.11
Negative
45.90
Neutral
24.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOV, the sentiment is Negative. The current price of 12.3 is below the 20-day moving average (MA) of 12.35, below the 50-day MA of 13.00, and below the 200-day MA of 14.95, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 24.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOV.
NOV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.45B | 15.67 | 27.24% | 0.64% | 14.26% | 294.37% | |
74 Outperform | $36.40B | 12.55 | 18.04% | 2.34% | 6.22% | 62.58% | |
73 Outperform | $17.12B | 8.34 | 20.99% | 3.42% | -2.54% | -17.53% | |
72 Outperform | $45.78B | 11.42 | 20.82% | 3.30% | 5.83% | -2.03% | |
70 Outperform | $4.62B | 8.20 | 9.29% | 2.47% | 0.54% | -39.88% | |
64 Neutral | $4.69B | 16.16 | 16.16% | 1.55% | -4.17% | -17.99% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% |
* Energy Sector Average
Performance Comparison
NOV
NOV
12.30
-5.90
-32.42%
BKR
Baker Hughes Company
37.23
5.55
17.52%
FTI
TechnipFMC
30.25
4.15
15.90%
HAL
Halliburton
19.97
-15.71
-44.03%
SLB
Schlumberger
33.93
-11.40
-25.15%
CHX
ChampionX
24.72
-7.84
-24.08%
NOV Corporate Events
Executive/Board ChangesShareholder MeetingsDividends
NOV Declares Dividends at Annual Stockholders Meeting
Positive
May 22, 2025
On May 20, 2025, NOV Inc. held its Annual Meeting of Stockholders where key decisions were made, including the re-election of nine board members, the ratification of Ernst & Young LLP as auditors for 2025, approval of executive compensation, and amendments to the Long-Term Incentive Plan. Additionally, the Board declared a supplemental dividend of $0.21 per share and a regular quarterly dividend of $0.075 per share, reflecting the company’s commitment to returning capital to shareholders.
The most recent analyst rating on (NOV) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on NOV stock, see the NOV Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
NOV Announces Leadership Changes and Executive Promotions
Positive
Mar 20, 2025
On March 17, 2025, NOV Inc. announced significant leadership changes as part of its long-term succession planning. Jose Bayardo was promoted to President and Chief Operating Officer, while Rodney Reed was appointed as Senior Vice President and Chief Financial Officer. These appointments reflect NOV’s commitment to leveraging seasoned executives to drive superior results for stakeholders. The changes also include adjustments to compensation packages and incentive plans for both executives, highlighting the company’s strategic focus on strengthening its leadership team to maintain its industry positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.