NOV (NOV) AI Stock Analysis

• Market Cap: $4.55B
• Dividend Yield: 2.51%
• Average Volume (3M): 5.38M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.94
• Revenue Growth: 3.42%
• EPS Growth: -35.98%
• Country: US
• Employees: 34,010
• Sector: Energy
• Sector Strength: 62
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.61
• Shares Outstanding: 380,819,820
• 10 Day Avg. Volume: 4,110,796
• 30 Day Avg. Volume: 5,377,189
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.63
• Price to Cash Flow (P/CF): 2.40
• P/FCF Ratio: 2.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.80
• Price Target Upside: 60.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

NOV's strong financial performance, attractive valuation, and positive earnings call sentiment drive a favorable stock score. Despite challenges in specific markets and technical indicators suggesting caution, the company's strategic advancements and leadership changes offer potential for future growth. The overall outlook is positive with consideration for market risks.

Positive Factors

Financial Performance

Stock jumped 13% on better than expected margin and FCF outlook.

Shareholder Returns

Management affirmed its commitment to distribute 50% of future FCF to shareholders through a combination of regular and supplemental dividends and opportunistic share buybacks.

Negative Factors

Market Conditions

The global drilling slowdown has intensified over the past few months, leading both offshore and land drillers to reduce capex, which is a clear headwind to NOV.

Revenue Decline

4Q guidance reflects an overall yoy decline in revenue of 3-5% with EBITDA of $280-300MM implying a margin of 12.9% at the midpoint, down from the 13.1% reported in 3Q.

NOV Business Overview & Revenue Model

Company Description

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors worldwide. The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. It also provides solids control and waste management equipment and services; portable power generation products; drill and wired pipes; drilling optimization and automation services; tubular inspection, repair, and coating services; instrumentation; measuring and monitoring services; downhole and fishing tools; steerable technologies; and drill bits. The company offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers. It also provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems. NOV Inc. offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training. The company was formerly known as National Oilwell Varco, Inc. and changed its name to NOV Inc. in January 2021. NOV Inc. was founded in 1862 and is based in Houston, Texas.

How the Company Makes Money

NOV generates revenue through the design, manufacture, sale, and service of a wide range of products and technologies for the oil and gas industry. Key revenue streams include sales of advanced drilling equipment, downhole tools, and wellbore intervention technologies. The company also earns money through long-term service agreements, providing maintenance, technical support, and training to its customers. Additionally, NOV benefits from strategic partnerships and collaborations with major oil and gas companies, which help to secure large-scale contracts and expand its market reach. The company's earnings are significantly influenced by global oil and gas industry trends, including exploration and production activity levels and technological advancements.

NOV Financial Statement Overview

Summary

NOV demonstrates strong financial performance with notable improvements in profitability and operational efficiency. The income statement shows revenue and profit growth, but a decrease in net income is a concern. The balance sheet highlights low leverage and financial stability, while cash flow shows robust cash generation despite past fluctuations.

Income Statement

The income statement shows a positive trajectory with significant revenue and profit growth. The TTM revenue increased by 3.33% compared to the previous year. Gross profit margin is healthy at 24.14%, and the net profit margin improved from previous deficits to 7.16% in the TTM. EBIT and EBITDA margins also indicate strong operational performance, standing at 11.35% and 12.76%, respectively. However, the net income has decreased compared to the previous year, which could be a point of concern.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.37, indicating a low leverage level. Return on Equity (ROE) has improved to 9.88% in the TTM, suggesting efficient use of equity capital. The equity ratio is strong at 56.57%, highlighting financial stability and a solid asset base. Overall, the balance sheet indicates strong financial health with manageable debt levels.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow, with a growth rate of 780.71% from the previous year, reflecting better cash management. Operating cash flow to net income ratio is strong at 2.05, indicating robust cash generation relative to profits. Despite these strengths, the company experienced fluctuations in free cash flow over the years, which may pose risks to cash liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.87B	8.58B	7.24B	5.52B	6.09B
	Gross Profit
2.01B	1.83B	1.33B	774.00M	434.00M
	EBIT
876.00M	651.00M	264.00M	-153.00M	-534.00M
	EBITDA
1.26B	1.00B	617.00M	153.00M	-2.34B
	Net Income Common Stockholders
635.00M	993.00M	155.00M	-245.00M	-2.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23B	816.00M	1.07B	1.59B	1.69B
	Total Assets
11.36B	11.29B	10.13B	9.55B	9.93B
	Total Debt
2.39B	2.38B	2.37B	2.39B	2.56B
	Net Debt
1.16B	1.56B	1.30B	797.00M	864.00M
	Total Liabilities
4.93B	5.05B	5.00B	4.49B	4.65B
	Stockholders Equity
6.38B	6.17B	5.13B	5.06B	5.28B
Cash Flow		Free Cash Flow
953.00M	-140.00M	-393.00M	90.00M	700.00M
	Operating Cash Flow
1.30B	143.00M	-179.00M	291.00M	926.00M
	Investing Cash Flow
-471.00M	-293.00M	-238.00M	-196.00M	-144.00M
	Financing Cash Flow
-406.00M	-103.00M	-96.00M	-189.00M	-259.00M

NOV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 11.11 is below the 20-day moving average (MA) of 14.34, below the 50-day MA of 14.71, and below the 200-day MA of 15.97, indicating a bearish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOV.

NOV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKR	81 Outperform	$35.07B	11.90	18.47%	2.41%	9.10%	55.56%
FTI	79 Outperform	$10.58B	13.15	27.06%	0.79%	16.23%	1403.29%
NOV	78 Outperform	$4.55B	7.45	10.12%	2.51%	3.42%	-35.98%
SLB	77 Outperform	$47.30B	11.20	21.59%	3.35%	9.58%	6.53%
HAL	75 Outperform	$17.22B	7.05	25.14%	3.40%	-0.32%	-3.41%
CHX	75 Outperform	$4.45B	14.09	18.18%	1.63%	-3.31%	4.82%
Sector *	57 Neutral	$7.52B	4.07	-3.52%	8.38%	-0.14%	-64.60%

NOV Corporate Events

NOV Announces Leadership Changes and Executive Promotions

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.