NOV (NOV) AI Stock Analysis

• Market Cap: $4.85B
• Dividend Yield: 3.9%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.77
• Revenue Growth: -1.21%
• EPS Growth: -54.44%
• Country: US
• Employees: 34,010
• Sector: Energy
• Sector Strength: 63
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.34
• Shares Outstanding: 371,364,750
• 10 Day Avg. Volume: 3,096,023
• 30 Day Avg. Volume: 3,586,426
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: $14.86
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: $14.50 ▲(8.94% Upside)

NOV's overall score reflects a strong financial recovery and attractive valuation, tempered by mixed earnings call sentiment and neutral technical indicators. The company's solid balance sheet and cash flow improvements are significant strengths, but recent revenue declines and market challenges pose risks.

Positive Factors

Strong Free Cash Flow

The ability to consistently generate strong free cash flow enhances NOV's financial flexibility, allowing for strategic investments and shareholder returns, which supports long-term business stability and growth.

Record Revenues in Key Segments

Record revenues in strategic segments like Subsea Flexible Pipe indicate robust demand and competitive positioning, which can drive sustained growth and market leadership in the energy sector.

Consistent Margin Growth

Consistent margin growth in the Energy Equipment segment reflects operational efficiency and pricing power, which are critical for maintaining profitability and competitive advantage in a challenging market.

Negative Factors

Decline in Aftermarket Sales

A decline in aftermarket sales can weaken revenue streams and margin stability, as these sales are typically high-margin and critical for long-term customer relationships and service contracts.

Impact of Tariffs and Inflation

Rising tariff and inflation costs can erode profit margins and increase operational expenses, posing a risk to financial performance and competitive pricing in the global market.

Challenges in Key Markets

Decreased drilling activity in key markets like the U.S. and international regions impacts revenue and market share, challenging NOV's ability to sustain growth in a volatile industry.

NOV Business Overview & Revenue Model

Company Description

NOV Inc. (formerly National Oilwell Varco) is a leading global provider of equipment and technology for the oil and gas industry, as well as for other energy sectors. The company operates through multiple segments, including Rig Technologies, Wellbore Technologies, Completion & Production Solutions, and Distribution & Transmission. NOV offers a wide range of products and services, including drilling rigs, wellbore construction services, completion technologies, and aftermarket support, catering to both onshore and offshore operations.

How the Company Makes Money

NOV generates revenue primarily through the sale of its equipment and technology products to oil and gas operators, as well as through the provision of services across the drilling and production lifecycle. Key revenue streams include the manufacturing and sale of drilling rigs, completion systems, and wellbore technologies, alongside service contracts for maintenance and support. The company also benefits from aftermarket sales, providing spare parts and services that are essential for operational efficiency. Additionally, NOV has strategic partnerships with major oilfield service companies and operators, enhancing its market reach and creating opportunities for joint ventures that contribute to its earnings.

NOV Financial Statement Overview

Summary

NOV demonstrates a strong financial recovery with improved profitability margins and leverage. The balance sheet is solid, supporting operational stability. Cash flow has improved, though further enhancements in cash conversion efficiency are needed. Recent revenue and income trends should be monitored for sustained growth.

Income Statement

The income statement shows a strong recovery and growth trajectory. The TTM data indicates a Gross Profit Margin of 21.1% and a Net Profit Margin of 5.4%. Revenue growth has been positive, with a 21.8% increase from 2021 to 2024, despite a slight decline in the most recent TTM period. EBIT and EBITDA margins have improved significantly over the years, reflecting operational efficiency. However, the recent decline in revenue and net income poses a potential concern.

Balance Sheet

The balance sheet is robust with a Debt-to-Equity Ratio of 0.36, indicating a healthy leverage position. Return on Equity in the TTM period is 7.2%, showing profitability improvement. The Equity Ratio stands at 57.7%, highlighting financial stability. However, total assets and stockholders' equity have grown modestly, which may limit future expansion potential.

Cash Flow

Cash flow analysis reveals a positive shift in free cash flow, with a substantial recovery from negative figures in 2022 to positive in the TTM period. The Operating Cash Flow to Net Income Ratio is strong at 2.71, indicating efficient cash generation. However, the Free Cash Flow to Net Income Ratio of 1.93 suggests room for improvement in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.79B	8.87B	8.58B	7.24B	5.52B	6.09B
Gross Profit	1.85B	2.01B	1.83B	1.33B	774.00M	434.00M
EBITDA	1.05B	1.26B	1.00B	617.00M	153.00M	-2.34B
Net Income	471.00M	635.00M	993.00M	155.00M	-245.00M	-2.54B
Balance Sheet
Total Assets	11.36B	11.36B	11.29B	10.13B	9.55B	9.93B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.23B	816.00M	1.07B	1.59B	1.69B
Total Debt	2.37B	2.39B	2.38B	2.37B	2.39B	2.56B
Total Liabilities	4.80B	4.93B	5.05B	5.00B	4.49B	4.65B
Stockholders Equity	6.56B	6.38B	6.17B	5.13B	5.06B	5.28B
Cash Flow
Free Cash Flow	909.00M	953.00M	-140.00M	-393.00M	90.00M	700.00M
Operating Cash Flow	1.28B	1.30B	143.00M	-179.00M	291.00M	926.00M
Investing Cash Flow	-407.00M	-471.00M	-293.00M	-238.00M	-196.00M	-144.00M
Financing Cash Flow	-626.00M	-406.00M	-103.00M	-96.00M	-189.00M	-259.00M

NOV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.31
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 13.31 is above the 20-day moving average (MA) of 12.85, above the 50-day MA of 12.88, and below the 200-day MA of 13.50, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.73 is Neutral, 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	81 Outperform	$16.81B	19.36	29.27%	0.50%	12.15%	91.88%
HAL	78 Outperform	$19.27B	10.57	18.16%	3.05%	-4.08%	-29.26%
SLB	77 Outperform	$54.08B	12.39	19.78%	3.14%	0.94%	-4.63%
BKR	74 Outperform	$45.00B	14.93	18.32%	1.92%	2.13%	54.69%
WFRD	74 Outperform	$4.51B	9.81	35.14%	1.59%	-5.35%	-4.15%
NOV	70 Outperform	$4.85B	10.74	7.31%	3.90%	-1.21%	-54.44%
Sector *	65 Neutral	$15.27B	7.59	4.09%	5.23%	3.88%	-62.31%

NOV Corporate Events

NOV Declares Dividends at Annual Stockholders Meeting

On May 20, 2025, NOV Inc. held its Annual Meeting of Stockholders where key decisions were made, including the re-election of nine board members, the ratification of Ernst & Young LLP as auditors for 2025, approval of executive compensation, and amendments to the Long-Term Incentive Plan. Additionally, the Board declared a supplemental dividend of $0.21 per share and a regular quarterly dividend of $0.075 per share, reflecting the company’s commitment to returning capital to shareholders.

The most recent analyst rating on (NOV) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on NOV stock, see the NOV Stock Forecast page.