NOV Inc. (NOV)
NYSE:NOV
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NOV
(NYSE:NOV)
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Rating:58Neutral
Price Target:
$21.50
â–²(12.57% Upside)
Action:Reiterated
Date:05/22/26
The score is held back primarily by weakening financial momentum (sharp TTM margin/ROE compression and lower recent free cash flow) and a very high P/E. Offsetting factors include a stable balance sheet, positive cash generation, and constructive technical trend; the earnings call supports longer-term demand/backlog strength but underscores meaningful near-term disruption and cost pressure.
Positive Factors
Backlog & Bookings
A multi-billion backlog and strong bookings provide durable revenue visibility across quarters, smoothing cycle exposure for capital equipment. This backlog supports planned backlog-to-revenue conversion, underpins resource utilization, and reduces near-term organic demand reliance while management executes backlog conversion strategies.
Negative Factors
Compressed Profitability
Steep margin and return-on-equity deterioration signal weaker pricing power, adverse mix, or cost absorption issues. Persistently low margins constrain reinvestment, reduce ability to sustain dividends/repurchases, and make earnings more sensitive to input-cost swings and project execution variances over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Bookings
A multi-billion backlog and strong bookings provide durable revenue visibility across quarters, smoothing cycle exposure for capital equipment. This backlog supports planned backlog-to-revenue conversion, underpins resource utilization, and reduces near-term organic demand reliance while management executes backlog conversion strategies.
Read all positive factors
NOV (NOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.49B
Dividend Yield3.24%
Average Volume (3M)4.86M
Price to Earnings (P/E)84.9
Beta (1Y)0.73
Revenue Growth-1.33%
EPS Growth-84.10%
CountryUS
Employees34,010
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding358,888,500
10 Day Avg. Volume4,088,367
30 Day Avg. Volume4,859,317
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.93
Price to Sales (P/S)0.66
P/FCF Ratio6.73
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda11.52
Forecast
1Y Price Target
$21.58Price Target Upside13.00% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.86
Revenue Forecast (FY)$8.62B
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 Technolog...
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 ...
NOV Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call balanced demonstrable operational and commercial strengths—record safety performance, strong bookings, expanding subsea flexible pipe and process systems businesses, backlog build, and active capital return and cost-reduction programs—against meaningful near-term headwinds from the Middle East conflict, supply chain/logistics disruption, tariff and input-cost pressure, and softer aftermarket and EPS volumes. Management is cautiously optimistic about an accelerating multi-quarter recovery and has approved targeted capacity investment, but near-term guidance and results reflect ongoing disruption and cost pressure.Positive Updates
Consolidated Revenue and EBITDA
Reported consolidated revenue of $2.05 billion and adjusted EBITDA of $177 million (9% of sales) in Q1 2026, demonstrating ongoing cash-generative operations despite macro disruptions.
Negative Updates
Quarterly Revenue Decline and Low Net Income
Consolidated revenue decreased 2% year-over-year to $2.05 billion. Net income was $19 million, or $0.05 per diluted share, reflecting margin pressure and one-time items.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue and EBITDA
Reported consolidated revenue of $2.05 billion and adjusted EBITDA of $177 million (9% of sales) in Q1 2026, demonstrating ongoing cash-generative operations despite macro disruptions.
Read all positive updates
Company Guidance
NOV’s guidance assumes current Middle East conditions (ceasefire holds, Strait closed) and for Q2 calls for Energy Equipment revenue down 2–4% y/y with EBITDA of $135–$155 million, and Energy Products & Services revenue down 6–8% y/y with EBITDA of $100–$120 million. For 2026 the company expects capital expenditures of $340–$370 million and to convert 40–50% of 2026 EBITDA to free cash flow (cash generation ramping through the year); Q2 guidance incorporates roughly ~$30 million of tariff expense and follows an estimated Q1 Middle East impact of ~$54 million to revenue and ~$32 million to EBITDA (Q1 consolidated revenue $2.05 billion, adjusted EBITDA $177 million or 9% of sales, adjusted operating profit $85 million or 4% of sales). Energy Equipment booked $520 million in Q1 (book‑to‑bill 80%) with ending backlog $4.23 billion and expects full‑year book‑to‑bill near 100%; EPS segment Q1 revenue was $897 million (down 10%) with adjusted EBITDA $96 million (10.7% of sales).NOV Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.69B | 8.74B | 8.87B | 8.58B | 7.24B | 5.52B |
| Gross Profit | 1.70B | 1.77B | 2.01B | 1.83B | 1.33B | 774.00M |
| EBITDA | 735.00M | 818.00M | 1.26B | 1.00B | 617.00M | 153.00M |
| Net Income | 92.00M | 145.00M | 635.00M | 993.00M | 155.00M | -250.00M |
Balance Sheet | ||||||
| Total Assets | 11.14B | 11.29B | 11.36B | 11.29B | 10.13B | 9.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.55B | 1.23B | 816.00M | 1.07B | 1.59B |
| Total Debt | 2.34B | 2.34B | 2.39B | 2.38B | 2.37B | 2.39B |
| Total Liabilities | 4.88B | 4.97B | 4.93B | 5.05B | 5.00B | 4.49B |
| Stockholders Equity | 6.21B | 6.27B | 6.38B | 6.17B | 5.10B | 5.00B |
Cash Flow | ||||||
| Free Cash Flow | 734.00M | 864.00M | 953.00M | -140.00M | -393.00M | 90.00M |
| Operating Cash Flow | 1.09B | 1.24B | 1.30B | 143.00M | -179.00M | 291.00M |
| Investing Cash Flow | -345.00M | -362.00M | -471.00M | -293.00M | -238.00M | -196.00M |
| Financing Cash Flow | -564.00M | -584.00M | -406.00M | -103.00M | -96.00M | -189.00M |
NOV Technical Analysis
Positive
19.10
Price Trends
19.67
Positive
19.10
Positive
16.51
Positive
Market Momentum
0.35
Negative
57.13
Neutral
76.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOV, the sentiment is Positive. The current price of 19.1 is below the 20-day moving average (MA) of 20.39, below the 50-day MA of 19.67, and above the 200-day MA of 16.51, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOV.
NOV Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $66.26B | 16.25 | 16.84% | 2.04% | 0.20% | 6.96% | |
78 Outperform | $28.47B | 26.54 | 32.54% | 0.44% | 9.44% | 36.97% | |
70 Outperform | $85.64B | 25.61 | 13.46% | 2.98% | -0.53% | -22.59% | |
70 Outperform | $7.91B | 15.74 | 28.39% | 1.25% | -8.81% | >-0.01% | |
68 Neutral | $35.34B | 17.70 | 14.67% | 2.41% | -1.72% | -23.60% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $7.49B | 84.88 | 1.45% | 3.24% | -1.33% | -84.10% |
* Energy Sector Average
NOV
NOV
20.81
9.13
78.12%
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NOV Corporate Events
Executive/Board ChangesDividendsShareholder Meetings
NOV Shareholders Back Leadership, Board Declares Dual Dividends
Positive
May 22, 2026
On May 20, 2026, NOV Inc. held its Annual Meeting of Stockholders, where shareholders re-elected nine directors to one-year terms through the 2027 meeting, ratified Ernst Young LLP as independent auditor for 2026, and approved on an advisory basi...
Executive/Board Changes
NOV adds seasoned industrial leader to its board
Positive
Mar 18, 2026
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...
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.