Innovex International (INVX) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 358.34K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.91
• Revenue Growth: 72.10%
• EPS Growth: N/A
• Country: US
• Employees: 2,683
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.34
• Shares Outstanding: 68,978,730
• 10 Day Avg. Volume: 390,261
• 30 Day Avg. Volume: 358,339
• PEG Ratio: <0.01
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.81
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 2.20
• 1Y Price Target: $16.00
• Price Target Upside: -4.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $18.00 ▲(7.21%Upside)

Innovex International's overall stock score reflects a strong financial performance and attractive valuation, offset by mixed technical indicators and challenges highlighted in the earnings call. The strategic sale of a facility to fund share buybacks and M&A activities adds a positive outlook, but market uncertainties, especially in international operations, remain a concern.

Innovex International Business Overview & Revenue Model

Company Description

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for offshore and onshore applications worldwide. The company's principal products include subsea and surface wellheads, specialty connectors and associated pipes, subsea production trees and systems, mudline hanger systems, production riser systems, dry tree systems, subsea manifolds, line hangers and expandable liner systems, multi-frac well connections, conventional wellheads, thermal wellheads, completion packers, and safety and kelly valves; and rig equipment comprises drilling riser systems, wellhead connectors, diverters, and cement manifolds. It also provides technical advisory assistance, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products; equipment installation and monitoring, storage, maintenance, and repair services; and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore. The company's products are used in the exploration and production of oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, Spars, and moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling and other oilfield contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.

How the Company Makes Money

Innovex International generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consultancy fees. The company's software solutions are often licensed to businesses on a subscription basis, providing a steady stream of recurring revenue. Additionally, Innovex offers bespoke consultancy services, assisting organizations in implementing and optimizing technology solutions, which is another significant revenue stream. The company also benefits from strategic partnerships with leading technology firms, enhancing its market reach and service offerings. These partnerships often involve collaborative projects and co-developments, contributing to Innovex's earnings. Furthermore, Innovex capitalizes on emerging technology trends by consistently innovating and expanding its portfolio of solutions, which helps maintain its competitive edge and revenue growth.

Innovex International Financial Statement Overview

Summary

Innovex International demonstrates strong financial health with significant revenue growth and profit margins, supported by a stable balance sheet and improving cash flows. The company has shown a remarkable turnaround from past financial struggles, reflecting effective strategic and operational decisions. However, the company should continue focusing on cash flow improvement and maintaining operational efficiencies.

Income Statement

Innovex International shows a robust revenue growth of 49.25% in TTM compared to the previous year, indicating strong top-line expansion. The gross profit margin stands at a healthy 32.61%, and the net profit margin has improved significantly to 14.62%. EBIT and EBITDA margins are 2.46% and 20.23% respectively, showing operational efficiency improvements. The company has turned around from past losses to posting substantial net income, reflecting effective cost management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.095, indicating conservative financial leverage. Return on Equity (ROE) is impressive at 9.66%, a significant recovery from previous lows, showing effective use of shareholders' capital. The equity ratio is strong at 80.03%, highlighting a robust financial structure with adequate equity coverage for liabilities.

Cash Flow

Innovex International's cash flow is strengthening, with a notable improvement in free cash flow from negative in 2023 to positive in TTM, showcasing better cash management. The operating cash flow to net income ratio is 0.48, which implies that a substantial portion of net income is being converted into cash. The free cash flow to net income ratio is 0.26, indicating positive but moderate free cash flow generation relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
340.56M	660.80M	424.06M	467.19M	294.84M	364.97M
	Gross Profit
90.88M	232.63M	115.41M	157.15M	87.40M	95.09M
	EBIT
-31.12M	49.08M	97.28M	76.55M	14.08M	-18.70M
	EBITDA
-29.26M	184.77M	129.93M	95.43M	33.59M	-29.04M
	Net Income Common Stockholders
-50.35M	140.32M	73.93M	63.28M	9.85M	-30.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
398.95M	73.28M	7.41M	8.42M	9.74M	345.95M
	Total Assets
1.21B	1.20B	1.03B	436.29M	284.89M	1.15B
	Total Debt
1.54M	91.07M	84.91M	81.40M	35.24M	1.25M
	Net Debt
-397.40M	17.79M	77.50M	72.98M	25.50M	-344.70M
	Total Liabilities
115.86M	239.33M	146.38M	185.01M	104.34M	109.64M
	Stockholders Equity
1.09B	958.16M	328.92M	251.28M	180.55M	1.04B
Cash Flow		Free Cash Flow
12.27M	79.84M	-24.90M	-15.39M	-8.47M	-33.03M
	Operating Cash Flow
21.52M	93.44M	75.86M	-5.81M	-2.02M	-21.09M
	Investing Cash Flow
-123.00K	78.44M	-79.81M	-37.52M	-22.06M	-5.63M
	Financing Cash Flow
-131.00K	-103.07M	-124.00K	42.28M	10.05M	-25.18M

Innovex International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.79
• 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 INVX, the sentiment is Positive. The current price of 16.79 is above the 20-day moving average (MA) of 15.06, above the 50-day MA of 15.17, and above the 200-day MA of 15.74, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 67.60 is Neutral, neither overbought nor oversold. The STOCH value of 94.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INVX.

Innovex International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	75 Outperform	$1.16B	6.42	13.87%	―	72.10%	―
RES	75 Outperform	$1.07B	14.40	7.06%	3.29%	-9.78%	-49.45%
XPRO	74 Outperform	$1.10B	16.33	4.91%	―	10.48%	―
HLX	71 Outperform	$1.07B	12.99	5.64%	―	0.34%	―
WTTR	69 Neutral	$1.11B	26.47	4.51%	3.07%	-4.91%	-46.51%
MRC	68 Neutral	$1.12B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	58 Neutral	$7.57B	3.50	-4.45%	10.15%	0.79%	-49.51%

Innovex International Corporate Events

Innovex International Approves New Executive Incentive Plan

On May 30, 2025, Innovex International‘s Board of Directors approved new forms of restricted stock unit (RSU) and performance unit award agreements under its 2025 Long-Term Incentive Plan. These awards, which vest over three years, were granted to key executives and are designed to align their interests with company performance goals, potentially impacting shareholder returns and executive retention.

The most recent analyst rating on (INVX) stock is a Sell with a $13.00 price target. To see the full list of analyst forecasts on Innovex International stock, see the INVX Stock Forecast page.

Innovex International Holds Annual Stockholders Meeting

On May 14, 2025, Innovex International, Inc. held its Annual Meeting of Stockholders where several key proposals were approved. The stockholders approved the 2025 Long-Term Incentive Plan, which allows for the issuance of up to 5,000,000 shares of common stock, and an amendment to the company’s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000. Additionally, the election of directors, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm, and an advisory vote on executive compensation were also ratified. These decisions are expected to impact the company’s operations by expanding its capacity for stock issuance and strengthening its governance structure.

The most recent analyst rating on (INVX) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Innovex International stock, see the INVX Stock Forecast page.

Innovex International Reports Q1 2025 Financial Results

On May 6, 2025, Innovex International announced its financial results for the first quarter of 2025, reporting a revenue of $240 million, which is a 4% decrease from the previous quarter. The company also highlighted its strategic moves, including the acquisition of SCF Machining Corporation and the planned sale of the Dril-Quip Eldridge facility for $95 million, which is expected to enhance margins and operational performance. Despite lower-than-expected activity in Mexico, Innovex maintained its margins and continued to focus on market opportunities and synergies to support growth. The company also initiated a $100 million share repurchase program and reported a net cash balance of $43 million at the end of the quarter.

Innovex International Sells Houston Facility for $95 Million

On April 21, 2025, Innovex International announced a definitive agreement to sell its Eldridge facility in Houston, Texas, to BIG Acquisitions LLC for $95 million, with the sale expected to close in the third quarter of 2025. This transaction is part of Innovex’s strategy to transform its business, with CEO Adam Anderson highlighting the sale as a significant milestone that will reduce the company’s operating footprint in Houston by 82%, improve delivery and responsiveness, and strengthen its balance sheet. The proceeds will support a $100 million share buyback and potential M&A activities. Despite a decline in Q1 2025 revenue, Innovex anticipates adjusted EBITDA between $44-$46 million, demonstrating resilience in uncertain market conditions.