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Innovex International (INVX)
NYSE:INVX
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Innovex International
(NYSE:INVX)
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Rating:76Outperform
Price Target:
$26.00
▲(15.45% Upside)
Innovex International's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's strategic initiatives further bolster its market position, although valuation metrics suggest moderate growth expectations. The absence of earnings call data limits insights into management's forward-looking guidance.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and competitiveness.
Strategic Partnerships
Strategic partnerships enhance market share and improve margins, providing a competitive advantage and potential for sustained growth.
Cash Flow Management
Strong cash flow management ensures financial flexibility, enabling investment in growth opportunities and resilience against economic fluctuations.
Negative Factors
Board Member Resignation
Leadership changes can disrupt strategic continuity and may impact governance, potentially affecting long-term strategic execution.
Net Profit Margin Pressure
Decreasing net profit margins indicate potential cost pressures or pricing challenges, which could affect long-term profitability if not addressed.
Debt Level Concerns
Rising debt levels, even if slight, can constrain financial flexibility and increase risk, impacting long-term financial health.
Innovex International (INVX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.55B
Dividend YieldN/A
Average Volume (3M)374.19K
Price to Earnings (P/E)15.3
Beta (1Y)1.05
Revenue Growth87.76%
EPS Growth1.77%
CountryUS
Employees2,683
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding68,927,790
10 Day Avg. Volume410,299
30 Day Avg. Volume374,194
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 Cap0.78
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit4.10
Enterprise Value/Ebitda5.95
Forecast
1Y Price Target
$20.00Price Target Upside-11.19% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Innovex International Business Overview & Revenue Model
Company DescriptionInnovex International (INVX) is a global leader in advanced technology solutions, specializing in the development and manufacturing of high-performance electronic components and systems. The company operates across various sectors, including telecommunications, aerospace, and automotive, providing cutting-edge products such as semiconductors, sensors, and communication devices. With a commitment to innovation and quality, Innovex International serves a diverse clientele, from major tech firms to government agencies, ensuring their needs for reliability and efficiency are met.
How the Company Makes MoneyInnovex International generates revenue through multiple key streams. Primarily, the company earns money by selling its electronic components and systems to manufacturers in various industries, including telecommunications and automotive. Additionally, Innovex provides tailored solutions and services, such as technical consulting and support, which contribute to its income. The company has established significant partnerships with leading technology firms and government contracts, providing a steady flow of business and enhancing its market position. Furthermore, Innovex invests in research and development to innovate new products, ensuring it remains competitive and can tap into emerging market trends, thus diversifying its revenue sources.
Innovex International Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
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 exhibits strong financial health with impressive revenue growth and efficient cash management. The balance sheet is solid with low leverage, and profitability metrics remain stable. While there are minor concerns regarding debt levels and net profit margin pressure, the overall financial position is robust.Income Statement
Innovex International has demonstrated strong revenue growth with a 10.17% increase in the TTM period. The gross profit margin stands at 31.23%, indicating efficient cost management. However, the net profit margin has slightly decreased from the previous year, suggesting some pressure on profitability. Overall, the company shows robust revenue growth and stable profitability metrics.85
Very Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.099, reflecting prudent financial leverage. The return on equity is healthy at 15.06%, showcasing effective use of equity capital. The equity ratio is strong, indicating a solid financial position. However, the slight increase in debt levels warrants monitoring.78
Positive
Cash Flow
Innovex International has shown a significant improvement in free cash flow growth at 13.21% in the TTM period. The operating cash flow to net income ratio is slightly above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is strong, suggesting efficient cash management. Overall, cash flow metrics are positive, with a notable improvement in free cash flow growth.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 955.34M | 660.80M | 555.54M | 467.19M | 294.84M | 364.97M |
| Gross Profit | 293.67M | 232.63M | 195.44M | 158.12M | 87.40M | 95.09M |
| EBITDA | 202.28M | 184.77M | 129.93M | 101.92M | 33.59M | -29.04M |
| Net Income | 101.12M | 140.32M | 73.93M | 63.28M | 9.85M | -30.77M |
Balance Sheet | ||||||
| Total Assets | 1.25B | 1.20B | 475.30M | 436.29M | 284.89M | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 168.84M | 73.28M | 7.41M | 8.42M | 9.74M | 345.95M |
| Total Debt | 82.48M | 91.07M | 84.91M | 114.58M | 39.22M | 7.19M |
| Total Liabilities | 214.96M | 239.33M | 146.38M | 185.01M | 104.34M | 109.64M |
| Stockholders Equity | 1.04B | 958.16M | 328.92M | 251.28M | 180.55M | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | 141.19M | 79.84M | 60.38M | -15.39M | -8.47M | -33.03M |
| Operating Cash Flow | 175.02M | 93.44M | 75.86M | -5.81M | -2.02M | -21.09M |
| Investing Cash Flow | -80.74M | 78.44M | -32.43M | -37.52M | -22.06M | -5.63M |
| Financing Cash Flow | -30.99M | -103.07M | -44.56M | 42.28M | 10.05M | -25.18M |
Innovex International Technical Analysis
Neutral
22.52
Price Trends
20.69
Positive
18.82
Positive
17.42
Positive
Market Momentum
0.68
Positive
54.41
Neutral
35.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVX, the sentiment is Neutral. The current price of 22.52 is below the 20-day moving average (MA) of 22.67, above the 50-day MA of 20.69, and above the 200-day MA of 17.42, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 35.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.50B | 20.75 | 7.67% | ― | 0.31% | 33.08% | |
77 Outperform | $1.59B | 23.75 | 4.60% | ― | -1.24% | 337.41% | |
76 Outperform | $1.55B | 15.34 | 10.41% | ― | 87.76% | 1.77% | |
71 Outperform | $1.03B | 24.86 | 2.71% | ― | -1.95% | 530.91% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
50 Neutral | $1.25B | -104.02 | -1.20% | 9.81% | 20.68% | -112.42% | |
45 Neutral | ― | ― | 0.28% | ― | -10.96% | -169.10% |
* Energy Sector Average
INVX
Innovex International
22.52
9.57
73.90%
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7.02
-2.14
-23.36%
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13.78
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3.84%
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Expro Group Holdings
14.04
2.99
27.06%
NESR
National Energy Services Reunited
14.89
6.05
68.44%
AESI
Atlas Energy Solutions
10.09
-11.76
-53.82%
Innovex International Corporate Events
Executive/Board Changes
Innovex International Board Member Announces Resignation
Neutral
Nov 10, 2025
On November 5, 2025, Carri Lockhart, a board member of Innovex International, announced her resignation effective March 2, 2026. Her departure is not due to any disagreements with the company’s operations or policies.
Business Operations and StrategyFinancial Disclosures
Innovex International Reports Q3 2025 Financial Results
Positive
Nov 3, 2025
On November 3, 2025, Innovex International announced its financial results for the third quarter of 2025, reporting a revenue of $240 million, a 7% increase from the previous quarter, and a net income of $39 million. The company highlighted significant progress in strategic initiatives, including the sale of the Eldridge facility and a new partnership with OneSubsea, positioning Innovex as the exclusive subsea wellhead provider. These developments are expected to enhance market share and improve margins, despite short-term costs associated with facility relocation. The company’s capital-light model and strong cash flow provide flexibility for future growth opportunities.
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.