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Innovex International, Inc. (INVX)
:INVX
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Innovex International
(NYSE:INVX)
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Rating:81Outperform
Price Target:
$20.50
▲(14.21% Upside)
Innovex International's strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust revenue growth, profitability, and cash flow management highlight its financial strength. While technical indicators suggest positive momentum, caution is advised due to potential overbought conditions. The absence of earnings call and corporate events data does not detract from the overall positive outlook.
Innovex International (INVX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45B
Dividend YieldN/A
Average Volume (3M)345.04K
Price to Earnings (P/E)7.3
Beta (1Y)1.13
Revenue Growth82.86%
EPS GrowthN/A
CountryUS
Employees2,683
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding68,779,150
10 Day Avg. Volume277,374
30 Day Avg. Volume345,039
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.73
Price to Sales (P/S)1.05
P/FCF Ratio8.70
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit4.10
Enterprise Value/Ebitda5.32
Forecast
1Y Price Target
$14.00Price Target Upside-22.01% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Innovex International Business Overview & Revenue Model
Company DescriptionInnovex International (INVX) is a global technology company specializing in the development and distribution of advanced solutions across various sectors, including telecommunications, healthcare, and industrial automation. The company focuses on delivering innovative products and services such as IoT devices, software solutions, and integrated systems that enhance operational efficiency and connectivity for businesses worldwide.
How the Company Makes MoneyInnovex International generates revenue through multiple streams, primarily from the sale of hardware and software products tailored for specific industry applications. Key revenue streams include direct sales of IoT devices, licensing fees from proprietary software solutions, and ongoing maintenance and support services for their products. Additionally, Innovex has established strategic partnerships with major corporations in the telecommunications and healthcare sectors, enabling them to expand their market reach and drive sales through collaborative projects and joint ventures. The company also benefits from recurring revenue through subscription models for its software offerings, providing a stable income base as customers rely on continuous support and updates.
Innovex International Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong revenue growth, successful integration of acquisitions, and robust free cash flow generation. However, these positives are offset by declines in international and offshore revenues, particularly in Mexico, and broader macroeconomic uncertainties. While there are notable achievements, the challenges and uncertainties present a balanced outlook.Q1-2025 Updates
Positive Updates
Record Revenue Growth
First quarter revenue was $240 million, an increase of 88% year-over-year, driven by the impact of the Dril-Quip and DWS acquisitions.
Strong North America Land Market Performance
The NAM Land revenue increased 17% sequentially due to the inclusion of a full quarter of DWS revenue and seasonal growth in Canada.
Successful Integration and Synergy Realization
EBITDA margin increased from 18% in Q3 2024 to 19% in Q1 2025, with continued identification of cost savings and margin enhancement opportunities.
Free Cash Flow Generation
Generated $24 million of free cash flow in Q1, converting approximately 52% of adjusted EBITDA to free cash flow.
Strategic Divestment of Eldridge Facility
Entered into a definitive agreement to sell the Eldridge facility for $95 million, which is expected to close by the end of 2025.
Innovative SubZERO Technology
The SubZERO technology saved a major operator $300,000 on a single well and reduced lead time by 60%.
Negative Updates
International and Offshore Revenue Decline
International and offshore revenue decreased by 19% sequentially, primarily due to a significant slowdown in Mexican drilling activity.
Challenges in Mexico Market
Revenue from Mexico, which was 5% of total company revenue last year, decreased by approximately 80% in Q1.
Subsea Business Revenue Miss
Revenues did not meet guidance range due to lumpiness in subsea deliveries and timing of customer deliveries.
Macro Environment Uncertainty
Significant uncertainty in the market, especially with respect to U.S. land activity levels, impacting future revenue outlook.
Company Guidance
During Innovex's First Quarter 2025 Earnings Call, the company outlined several key metrics and strategic initiatives. Innovex reported a quarterly revenue of $240 million, an 88% increase year-over-year, though a 4% decline sequentially. The company generated $46 million in adjusted EBITDA, converting approximately 52% into $24 million of free cash flow. The North America Land segment saw a 17% increase in revenue, totaling $121 million, whereas international and offshore revenue decreased by 19% to $120 million due to weaknesses in the Mexican market. Innovex maintained a net cash position of $43 million, supported by $68 million in cash and equivalents against $25 million in total debt. The company anticipates a net cash balance increase to nearly $140 million following the anticipated $95 million sale of the Eldridge facility. For the second quarter, Innovex guides for $225 million to $235 million in revenue and adjusted EBITDA between $40 million and $45 million, factoring in ongoing market uncertainties. The company also emphasized its strategic focus on maintaining a strong balance sheet, capitalizing on acquisition opportunities, and achieving mid-20% EBITDA margins over time.Innovex International Financial Statement Overview
Summary
Innovex International demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow generation is improving. Continued focus on operational efficiency and cash conversion will further strengthen the company's financial position.Income Statement
Innovex International shows a strong revenue growth trajectory, with a significant increase in total revenue from 2023 to 2024. The gross profit margin improved, indicating better cost management. However, the EBIT margin declined, suggesting increased operational costs. The net profit margin is robust, reflecting strong profitability.85
Very Positive
Balance Sheet
The company's balance sheet is solid, with a low debt-to-equity ratio indicating low leverage and financial stability. The equity ratio is strong, reflecting a healthy balance between equity and total assets. Return on equity is impressive, showcasing efficient use of shareholder funds. However, the increase in total liabilities needs monitoring.78
Positive
Cash Flow
Innovex International's cash flow statement indicates a positive shift in free cash flow, showing significant growth. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to earnings. However, the free cash flow to net income ratio indicates room for improvement in converting earnings to cash.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 867.15M | 660.80M | 555.54M | 467.19M | 294.84M | 364.97M |
| Gross Profit | 270.80M | 232.63M | 195.44M | 157.15M | 87.40M | 95.09M |
| EBITDA | 208.60M | 184.77M | 129.93M | 95.43M | 33.59M | -29.04M |
| Net Income | 144.48M | 140.32M | 73.93M | 63.28M | 9.85M | -30.77M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.20B | 475.30M | 436.29M | 284.89M | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 68.78M | 73.28M | 7.41M | 13.57M | 9.74M | 345.95M |
| Total Debt | 98.69M | 91.07M | 84.91M | 114.58M | 39.22M | 1.25M |
| Total Liabilities | 231.53M | 239.33M | 146.38M | 185.01M | 104.34M | 109.64M |
| Stockholders Equity | 995.55M | 958.16M | 328.92M | 251.28M | 180.55M | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | 124.72M | 79.84M | 60.38M | -15.39M | -8.47M | -33.03M |
| Operating Cash Flow | 148.37M | 93.44M | 75.86M | -5.81M | -2.02M | -21.09M |
| Investing Cash Flow | -4.58M | 78.44M | -32.43M | -37.52M | -22.06M | -5.63M |
| Financing Cash Flow | -85.11M | -103.07M | -44.56M | 42.28M | 10.05M | -25.18M |
Innovex International Technical Analysis
Positive
17.95
Price Trends
17.88
Positive
17.01
Positive
16.64
Positive
Market Momentum
0.78
Negative
73.44
Negative
92.66
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 17.95 is below the 20-day moving average (MA) of 18.88, above the 50-day MA of 17.88, and above the 200-day MA of 16.64, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 73.44 is Negative, neither overbought nor oversold. The STOCH value of 92.66 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $1.45B | 7.31 | 15.64% | ― | 82.86% | ― | |
| ― | $1.60B | 23.87 | 4.60% | ― | -1.24% | 337.41% | |
| ― | $1.36B | 18.61 | 8.17% | ― | ― | ― | |
| ― | $989.85M | 23.83 | 2.71% | ― | -1.95% | 530.91% | |
| ― | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
| ― | $1.50B | 79.75 | 1.20% | 8.19% | 49.18% | -87.20% | |
| ― | $1.19B | -58.42 | 5.66% | ― | -9.81% | -124.43% |
* Energy Sector Average
INVX
Innovex International
21.12
6.93
48.84%
HLX
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6.73
-2.52
-27.24%
MRC
MRC Global
13.95
1.69
13.78%
XPRO
Expro Group Holdings
14.11
1.36
10.67%
NESR
National Energy Services Reunited
14.10
4.90
53.26%
AESI
Atlas Energy Solutions
12.09
-6.29
-34.22%
Innovex International Corporate Events
Innovex International Reports Strong Q2 2025 Earnings
Aug 15, 2025
Innovex International, Inc., formerly known as Dril-Quip, Inc., is a company that designs, manufactures, sells, and rents engineered products for the global oil and natural gas industry. The company operates primarily in the oilfield services sector, providing solutions across the well lifecycle for both onshore and offshore applications.
Stock BuybackFinancial DisclosuresM&A Transactions
Innovex International Reports Q2 2025 Financial Results
Neutral
Aug 5, 2025
On August 5, 2025, Innovex International announced its financial results for the second quarter of 2025, reporting revenue of $224 million, a 7% decrease from the previous quarter. Despite the revenue decline, the company maintained profitability with a net income of $15 million and strong free cash flow of $52 million. Innovex completed the acquisition of Citadel Casing Solutions, LLC, which is expected to drive organic growth and enhance its market position. The acquisition was valued at $70 million and was 8% accretive to Innovex’s EPS. The company also repurchased 624,531 shares of its stock and maintained a net cash balance sheet, allowing flexibility for future M&A opportunities.
The most recent analyst rating on (INVX) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Innovex International stock, see the INVX Stock Forecast page.
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.