NOV (NOV) AI Stock Analysis

• Market Cap: $6.58B
• Dividend Yield: 3.24%
• Average Volume (3M): 4.88M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.92
• Revenue Growth: -1.43%
• EPS Growth: -63.13%
• Country: US
• Employees: 34,010
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.21
• Shares Outstanding: 360,404,540
• 10 Day Avg. Volume: 4,603,117
• 30 Day Avg. Volume: 4,879,970
• PEG Ratio: -0.53
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 6.73
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 9.25
• 1Y Price Target: $20.00
• Price Target Upside: 7.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): $8.64B

• Rating: 58 Neutral
• Price Target: $19.50 ▲(4.90% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven primarily by financially stable fundamentals and solid recent cash generation, supported by low leverage, but tempered by weakening TTM revenue/margins and cautious 2026 guidance (notably lower cash conversion). Technicals are soft (negative MACD and below the 20-day average), and valuation is a headwind given the high P/E despite a moderate dividend yield.

Positive Factors

Balance sheet strength

NOV's low net leverage and stable debt-to-equity provide durable financial flexibility. A conservative balance sheet supports capital returns, opportunistic buybacks or M&A, and resilience through industry cycles, reducing bankruptcy and refinancing risk during prolonged downturns.

Consistent cash generation

Sustained multi-year free cash flow indicates strong cash conversion capacity from operations and working-capital improvements. This underpins reinvestment, capex funding, dividend and buyback policy, and gives management latitude to weather lower revenue periods without balance-sheet strain.

Backlog and segment momentum

A sizable backlog and demonstrated strength in Energy Equipment and key businesses (subsea flexible pipe, Process Systems) create durable revenue visibility. Strong segment execution reduces cyclicality, supports aftermarket demand, and improves long-term margin mix as offshore activity recovers.

Negative Factors

Revenue & margin deterioration

Sharp TTM revenue decline and margin compression reflect the company's cyclical exposure to drilling and completion spending. Prolonged top-line pressure can erode operating leverage, reduce scale-dependent margins, and limit ability to sustain returns even with low leverage.

Weaker 2026 cash conversion guidance

Management's guidance for materially lower cash conversion signals potential working-capital or execution headwinds ahead. Reduced FCF generation relative to EBITDA constrains discretionary spending, shareholder returns, and debt buffer, increasing sensitivity to any further top-line weakness.

Structural cost pressures

Persistent tariffs and input-cost inflation raise structural unit costs and can compress project and aftermarket margins. For a capital-goods supplier, this lowers competitiveness on price-sensitive contracts and increases the likelihood of margin volatility until cost pressures or pass-through mechanisms normalize.

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 makes money primarily by designing, manufacturing, selling, and servicing equipment and technologies used by oil and gas operators and drilling contractors across the upstream value chain. (1) Product and equipment sales: Revenue is generated from sales of drilling and wellbore consumables and tools (e.g., downhole/drilling products) within Wellbore Technologies; from equipment and systems used for well completion and production operations (e.g., completion, intervention, and production-related components) within Completion & Production Solutions; and from rig equipment, packages, components, and capital equipment used on land and offshore rigs within Rig Technologies. (2) Aftermarket, spares, repair, and services: A significant portion of revenue comes from recurring aftermarket activity—replacement parts, consumables, maintenance, repair, refurbishment, and field services that support the installed base of NOV equipment across rigs and production sites. This stream tends to be tied to ongoing drilling activity and utilization of existing equipment rather than only new-build cycles. (3) Project-based and systems revenue: For larger rig and production-related systems, NOV earns revenue through project deliveries that may be recognized over time or at delivery depending on contract terms and accounting treatment, with margins influenced by project mix, execution, and supply-chain costs. (4) Key earnings drivers and factors: NOV’s revenue and profitability are strongly influenced by global oil and gas capital spending, rig count and utilization, drilling intensity, completion activity, and customer demand for both new equipment and aftermarket support. Information on specific partnerships is null.

NOV Financial Statement Overview

Summary

Financial stability is supported by manageable leverage and a solid balance sheet (debt-to-equity ~0.36–0.49; net debt/EBITDA ~0.2x) alongside positive TTM operating cash flow (~$1.25B) and free cash flow (~$0.88B). Offsetting this, the income profile is weakening with sharp TTM revenue decline (-30.8%) and margin compression vs 2024 (gross ~22% vs ~24%; net ~4.4% vs ~7.2%), consistent with a cyclical downshift.

Income Statement

Profitability has improved materially versus the 2020–2022 loss/low-profit period, with positive operating profit and EBITDA in the latest periods. However, performance has weakened recently: TTM (Trailing-Twelve-Months) revenue is down sharply (-30.8% growth) and margins compressed versus 2024 (gross margin ~22.0% vs ~24.0%; net margin ~4.4% vs ~7.2%), with net income down significantly from 2023–2024 levels. Overall, the earnings profile looks cyclical—improving off the trough but currently in a downshift.

Balance Sheet

Leverage appears manageable and stable, with debt-to-equity consistently in the ~0.36–0.49 range and equity remaining sizable relative to the asset base. Returns on equity have recovered strongly from negative levels in 2020–2021 to positive mid-to-high single digits recently (TTM ~5.9%), though still below the stronger 2023–2024 returns. Main risk is not balance-sheet strain but that profitability can swing meaningfully with the cycle, which can pressure returns even if leverage stays controlled.

Cash Flow

Cash generation is a relative strength recently: TTM (Trailing-Twelve-Months) operating cash flow (~$1.25B) and free cash flow (~$0.88B) are solid and remain positive. That said, free cash flow growth is down in TTM (about -11%), and the history shows volatility (negative operating/free cash flow in 2022 and negative free cash flow in 2023). Cash conversion relative to earnings is decent in 2024–TTM, but the variability across years suggests working-capital and cycle sensitivity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.74B	8.87B	8.58B	7.24B	5.52B
Gross Profit	1.77B	2.01B	1.83B	1.33B	774.00M
EBITDA	818.00M	1.26B	1.00B	617.00M	153.00M
Net Income	145.00M	635.00M	993.00M	155.00M	-250.00M
Balance Sheet
Total Assets	11.29B	11.36B	11.29B	10.13B	9.55B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.23B	816.00M	1.07B	1.59B
Total Debt	2.34B	2.39B	2.38B	2.37B	2.39B
Total Liabilities	4.97B	4.93B	5.05B	5.00B	4.49B
Stockholders Equity	6.27B	6.38B	6.17B	5.10B	5.00B
Cash Flow
Free Cash Flow	864.00M	953.00M	-140.00M	-393.00M	90.00M
Operating Cash Flow	1.24B	1.30B	143.00M	-179.00M	291.00M
Investing Cash Flow	-362.00M	-471.00M	-293.00M	-238.00M	-196.00M
Financing Cash Flow	-584.00M	-406.00M	-103.00M	-96.00M	-189.00M

NOV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOV, the sentiment is Neutral. The current price of 18.59 is below the 20-day moving average (MA) of 19.32, below the 50-day MA of 18.70, and above the 200-day MA of 14.91, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 16.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NOV.

NOV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	79 Outperform	$26.05B	19.37	29.62%	0.44%	11.73%	45.70%
BKR	69 Neutral	$56.80B	17.39	14.43%	2.04%	1.51%	30.09%
SLB	69 Neutral	$67.77B	16.85	14.64%	2.98%	-2.13%	-16.76%
WFRD	69 Neutral	$6.20B	13.11	28.18%	1.25%	-10.19%	-23.74%
HAL	66 Neutral	$30.34B	18.48	12.36%	2.41%	-4.06%	-47.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	58 Neutral	$6.58B	40.10	2.26%	3.24%	-1.43%	-63.13%

NOV Corporate Events

NOV adds seasoned industrial leader to its board

On March 17, 2026, NOV Inc. appointed Sanjay K. Chowbey, President and CEO of Kennametal Inc., to its Board of Directors, with his term expiring at the next annual shareholders’ meeting. Chowbey, who will serve on NOV’s Audit Committee, joins a nine-member board that now includes eight independent directors.

The appointment brings more than 20 years of global manufacturing and industrial technology leadership experience to NOV’s board, including Chowbey’s prior senior roles at Kennametal, Flowserve, Danaher, and Arvin Meritor. NOV’s leadership highlighted that his background in manufacturing efficiency and operational excellence is expected to support the company’s efforts to enhance value creation for shareholders and strengthen its governance profile.

The most recent analyst rating on (NOV) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on NOV stock, see the NOV Stock Forecast page.

NOV Announces Resignation of Board Director Ben Guill

NOV Inc. announced that director Ben A. Guill resigned from its Board of Directors effective following the company’s Board meeting on February 19, 2026. The company stated that Guill’s departure was due to future personal schedule and other time commitments and emphasized that his resignation did not arise from any dispute or disagreement over NOV’s operations, policies, or practices, while publicly thanking him for his distinguished service and contributions.

Guill’s exit represents a planned governance change rather than a signal of internal conflict, suggesting limited immediate impact on NOV’s strategic direction or day-to-day operations. Nevertheless, any Board transition can influence oversight and long-term decision-making, and stakeholders will be watching how NOV fills the vacancy to maintain continuity in its governance and support for its energy-focused growth priorities.

The most recent analyst rating on (NOV) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on NOV stock, see the NOV Stock Forecast page.