Innovex International (INVX) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: N/A
• Average Volume (3M): 374.19K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.07
• Revenue Growth: 87.76%
• EPS Growth: 1.77%
• Country: US
• Employees: 2,683
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.36
• Shares Outstanding: 69,138,690
• 10 Day Avg. Volume: 410,299
• 30 Day Avg. Volume: 374,194
• PEG Ratio: -0.32
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 9.69
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 5.76
• Enterprise Value/Ebitda: 7.73
• 1Y Price Target: $25.50
• Price Target Upside: 4.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.46
• Revenue Forecast (FY): $1.01B

• Rating: 73 Outperform
• Price Target: $29.00 ▲(19.29% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is led by strong financial performance—rapid multi-year revenue growth, improved profitability, and a very low-leverage balance sheet. Technicals are supportive but neutral-to-moderate, while valuation is reasonable yet not especially cheap given earnings volatility. The outlook is tempered by near-term guidance-driven softness and margin pressure, with an additional risk overhang from the patent verdict despite supportive buyback activity.

Positive Factors

Multi-year revenue growth and market expansion

Sustained scale-up from ~$295M to ~$978M over four years reflects durable demand gains and successful commercial expansion across U.S. land, offshore and international markets. This revenue base supports inorganic/organic growth, improves fixed-cost absorption and underpins long-term margin improvement potential.

Low leverage and strong liquidity

Very low net leverage and a cash balance (≈$203M) with no bank debt provide financial flexibility through cycles, enabling capital allocation to M&A, facility exits or buybacks without stressing operations. This durable balance-sheet strength reduces refinancing and covenant risk in downturns.

Strong free cash flow and conversion

High FCF and an ~83% conversion of adjusted EBITDA demonstrate effective cash conversion and working capital control versus prior loss years. Reliable cash generation supports reinvestment, deleveraging and shareholder returns, and is a durable indicator of operational resilience across cycles.

Negative Factors

Profitability volatility and margin inconsistency

Wide swings in net margin—peak ~21% then drop to ~8.5%—signal that earnings are sensitive to mix, legacy contracts and project execution. Such volatility can undermine ROCE targets, complicate capital planning and make multi-quarter margin improvement less certain despite revenue growth.

Patent litigation and material damage award

A ~$47.6M verdict for patent infringement creates a tangible contingent liability and legal overhang that can divert management attention, increase cash outflows if upheld, and complicate M&A or buyback plans. Appeals may delay resolution but do not remove the structural legal risk to capital allocation.

Subsea mix pressure, Eldridge exit costs and elevated CapEx

Legacy low-margin subsea projects, an Eldridge facility exit and temporarily elevated CapEx reduce near-term margins and ROCE. These structural transitions can persist across quarters due to lumpy subsea contracts and integration timing, delaying achievement of long-term 25% margin and ROCE targets.

Innovex International Business Overview & Revenue Model

Company Description

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.

Innovex International Financial Statement Overview

Summary

Strong multi-year revenue scale-up and improved profitability versus loss years, supported by low and improving leverage. Offsets include net-margin volatility (notably the 2024 to 2025 drop) and uneven cash conversion in some periods, which matters in a cyclical services backdrop.

Income Statement

Revenue growth has been strong on a multi-year basis, rising from ~$295M (2021) to ~$978M (2025), with notably rapid growth in 2022 and continued expansion through 2025. Profitability has also improved materially versus 2020 losses, with positive gross and EBITDA margins in each of the last five years and 2025 showing ~31% gross margin and ~19.6% EBITDA margin. The main offset is profitability volatility: net margin peaked in 2024 (~21%) but fell back in 2025 (~8.5%), indicating earnings are not yet consistently durable at the higher level.

Balance Sheet

Leverage is low and improving, with debt-to-equity down to ~0.07 in 2025 (from ~0.46 in 2022), supporting financial flexibility for a cyclical services business. Equity and assets are substantial relative to debt, and the company has avoided balance-sheet strain despite past operating swings. The key weakness is variability in equity and returns over time (including a loss year in 2020), which suggests the capital structure has shifted meaningfully and profitability has not been uniformly stable across cycles.

Cash Flow

Cash generation is currently strong, with operating cash flow of ~$191M and free cash flow of ~$156M in 2025, alongside solid free-cash-flow growth. Cash flow has also improved versus earlier years that included negative operating and free cash flow (2020–2022). The primary concern is consistency and conversion: 2024 operating cash flow was comparatively light versus net income (coverage below 1.0), and in 2025 free cash flow is still below net income on the provided figures, pointing to working-capital or reinvestment needs that can pressure cash conversion in some periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	978.25M	660.80M	555.54M	467.19M	294.84M
Gross Profit	242.54M	232.63M	195.44M	158.12M	87.40M
EBITDA	191.85M	184.77M	129.93M	101.92M	33.59M
Net Income	83.30M	140.32M	73.93M	63.28M	9.85M
Balance Sheet
Total Assets	1.27B	1.20B	475.30M	436.29M	284.89M
Cash, Cash Equivalents and Short-Term Investments	203.41M	73.28M	7.41M	8.42M	9.74M
Total Debt	120.27M	91.07M	84.91M	114.58M	39.22M
Total Liabilities	210.61M	239.33M	146.38M	185.01M	104.34M
Stockholders Equity	1.06B	958.16M	328.92M	251.28M	180.55M
Cash Flow
Free Cash Flow	155.78M	79.84M	60.38M	-15.39M	-8.47M
Operating Cash Flow	190.91M	93.44M	75.86M	-5.81M	-2.02M
Investing Cash Flow	-18.74M	78.44M	-32.43M	-37.52M	-22.06M
Financing Cash Flow	-44.92M	-103.07M	-44.56M	42.28M	10.05M

Innovex International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 24.31 is below the 20-day moving average (MA) of 26.12, below the 50-day MA of 25.31, and above the 200-day MA of 20.19, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NESR	77 Outperform	$2.12B	30.15	5.41%	―	0.31%	33.08%
INVX	73 Outperform	$1.68B	18.12	8.19%	―	87.76%	1.77%
XPRO	73 Outperform	$1.91B	29.70	3.41%	―	-1.24%	337.41%
HLX	67 Neutral	$1.43B	30.17	1.97%	―	-1.95%	530.91%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
AESI	62 Neutral	$1.70B	-22.93	-4.02%	10.12%	20.68%	-112.42%

Innovex International Corporate Events

Innovex Subsidiary Faces Major Patent Infringement Verdict

On March 5, 2026, a jury in the U.S. District Court for the Southern District of Texas returned a verdict against Innovex’s wholly owned subsidiary Downhole Well Solutions, LLC in a patent infringement case brought in 2023 by Impulse Downhole Solutions Ltd. and Impulse Downhole Tools USA Ltd. The suit alleged infringement of patents covering friction reduction tools used in directional drilling, and while claims relating to two patents were dismissed before trial, the jury found the remaining patent claims valid, determined that DWS had infringed them willfully, and awarded Impulse approximately $47.6 million in damages, which remain subject to adjustment in further court proceedings, with no final judgment entered yet, as Innovex continues to contest the outcome through post-trial motions and a planned appeal.

The most recent analyst rating on (INVX) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Innovex International stock, see the INVX Stock Forecast page.

Innovex International Prices Secondary Offering, Executes Share Buyback

On February 25, 2026, Innovex International, Inc. entered into an underwriting agreement with affiliates of Amberjack Capital Partners, L.P. as selling stockholders and J.P. Morgan Securities LLC as representative of the underwriters for a secondary offering of 5,750,000 shares of Innovex common stock at $25.75 per share, with a 30-day option for an additional 862,500 shares that was fully exercised on February 26, 2026. Innovex itself did not sell shares or receive proceeds from this offering, which was conducted under its existing shelf registration statement.

As part of the same transaction, Innovex agreed to repurchase 575,000 of the offered shares from the underwriters at their purchase price for about $14.1 million under its existing share repurchase program, leaving roughly $76.6 million available for future buybacks. A committee of independent, disinterested directors approved the repurchase, and the secondary offering and associated share repurchase both closed on February 27, 2026, reinforcing Innovex’s capital return strategy while providing liquidity to a major shareholder under customary underwriting terms and indemnities.

The most recent analyst rating on (INVX) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Innovex International stock, see the INVX Stock Forecast page.

Innovex International Posts Strong Q4 Results, Boosts Cash Position

Innovex International reported fourth-quarter and full-year 2025 results on February 23, 2026, highlighting Q4 revenue of $274 million, up 14% sequentially, net income of $14 million, and an adjusted EBITDA margin of 19%. For 2025, the company generated $156 million in free cash flow, $133 million in income from operations, a 10% return on capital employed, and ended the year with $203 million in cash and no bank debt, underscoring strong cash generation despite lower full-year profitability versus 2024.

Management attributed the strong finish to higher-than-expected subsea deliveries, revenue synergies from the DWS and Citadel acquisitions, and broader adoption of Innovex technologies across U.S. land, offshore, and international markets. Operationally, the company advanced its subsea strategy with first deliveries under the Innovex-OneSubsea alliance, multiple subsea wellhead projects in Asia, Mexico, and Brazil, and the tenth XPak installation in Brazil’s pre-salt fields, while planning to exit its Eldridge facility by the end of Q2 2026 to support margin improvement and maintain financial flexibility for acquisitions and shareholder returns.

The most recent analyst rating on (INVX) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Innovex International stock, see the INVX Stock Forecast page.