NOV (NOV) AI Stock Analysis

• Market Cap: $5.62B
• Dividend Yield: 3.31%
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.81
• 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): 0.11
• Shares Outstanding: 364,752,870
• 10 Day Avg. Volume: 5,365,980
• 30 Day Avg. Volume: 4,483,525
• PEG Ratio: -0.25
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.01
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 6.42
• 1Y Price Target: $16.09
• Price Target Upside: 4.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $16.50 ▲(7.14% Upside)

NOV's overall stock score reflects a stable financial position and positive technical indicators. The earnings call provided a promising outlook with strong financial performance, despite some challenges. The valuation is reasonable, and the dividend yield adds to the stock's attractiveness. However, the recent decline in revenue growth and cash flow challenges are areas to watch.

Positive Factors

Strong Backlog and Bookings

A robust backlog and high book-to-bill ratio indicate strong future demand and revenue visibility, supporting long-term growth prospects.

Growth in Offshore Production Equipment

The growth in offshore production equipment sales reflects NOV's competitive position in a key market segment, driving sustainable revenue growth.

Cost Control and Cash Flow Generation

Effective cost control and strong cash flow conversion enhance financial flexibility, enabling strategic investments and debt reduction.

Negative Factors

Decline in Aftermarket Revenues

A decline in aftermarket revenues can impact recurring income streams, affecting overall profitability and operational stability.

Softening North American Market

Reduced activity in the North American market could limit growth opportunities and pressure revenue from this key region.

Challenges from Tariffs and Inflation

Rising tariff and inflation costs pose a threat to margin sustainability, potentially eroding profitability if not mitigated.

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 stable financial position with moderate leverage and consistent profitability margins. However, the recent decline in revenue growth and challenges in cash flow generation highlight areas for improvement. The company needs to focus on reversing the revenue decline and enhancing cash flow efficiency to strengthen its financial health further.

Income Statement

The company's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 17.1%, which is a concern. However, the company maintains a reasonable gross profit margin of 21.1% and a net profit margin of 5.4%. The EBIT and EBITDA margins are also stable at 7.9% and 11.9%, respectively. Despite the recent revenue decline, the company has shown resilience in maintaining profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36, indicating moderate leverage. The return on equity (ROE) is 7.3%, which, while lower than previous years, still shows the company's ability to generate returns on shareholders' equity. The equity ratio stands at 57.4%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow growth rate of -3.52% in the TTM period. The operating cash flow to net income ratio is 0.57, indicating that operating cash flow adequately covers net income. However, the free cash flow to net income ratio of 0.71 suggests that the company needs to improve its cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.77B	8.87B	8.57B	7.23B	5.53B	6.07B
Gross Profit	1.93B	2.13B	1.81B	1.32B	783.00M	423.00M
EBITDA	953.00M	1.26B	1.00B	617.00M	153.00M	-2.34B
Net Income	383.00M	635.00M	993.00M	155.00M	-250.00M	-2.54B
Balance Sheet
Total Assets	11.34B	11.36B	11.29B	10.13B	9.55B	9.93B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.23B	816.00M	1.07B	1.59B	1.69B
Total Debt	2.35B	2.39B	2.38B	2.37B	2.39B	2.56B
Total Liabilities	4.83B	4.93B	5.05B	5.00B	4.49B	4.65B
Stockholders Equity	6.46B	6.38B	6.17B	5.10B	5.00B	5.21B
Cash Flow
Free Cash Flow	877.00M	953.00M	-140.00M	-393.00M	90.00M	700.00M
Operating Cash Flow	1.27B	1.30B	143.00M	-179.00M	291.00M	926.00M
Investing Cash Flow	-429.00M	-471.00M	-293.00M	-238.00M	-196.00M	-144.00M
Financing Cash Flow	-622.00M	-406.00M	-103.00M	-96.00M	-189.00M	-259.00M

NOV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 15.4 is above the 20-day moving average (MA) of 14.56, above the 50-day MA of 13.68, and above the 200-day MA of 13.23, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 66.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOV.

NOV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	80 Outperform	$17.36B	19.24	28.72%	0.53%	11.73%	45.70%
BKR	78 Outperform	$48.15B	16.80	16.83%	1.94%	1.51%	30.09%
SLB	75 Outperform	$53.89B	13.94	15.46%	3.11%	-2.13%	-16.76%
WFRD	75 Outperform	$5.20B	13.10	27.88%	1.38%	-10.19%	-23.74%
HAL	72 Outperform	$22.67B	17.83	12.77%	2.52%	-4.06%	-47.41%
NOV	72 Outperform	$5.62B	15.38	5.93%	3.31%	-1.43%	-63.13%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

NOV Corporate Events

NOV Inc. Reports Q3 2025 Financial Results

NOV Inc., a leading provider of technology-driven solutions for the global energy industry, has reported its third-quarter 2025 financial results, highlighting a slight decrease in revenue and net income compared to the previous year. The company operates primarily in the oilfield services and equipment sector, known for its innovative technologies that enhance energy production efficiency and safety.

NOV Inc. Earnings Call: Mixed Outlook with Strong Financials

The recent earnings call of NOV Inc. presented a mixed sentiment, highlighting a strong financial performance and promising backlog and bookings. However, these positives were tempered by challenges such as declining aftermarket revenues, a softening North American market, and the impacts of tariffs.

NOV Appoints Jose A. Bayardo to Board of Directors

On October 27, 2025, NOV Inc. announced the appointment of Jose A. Bayardo to its Board of Directors, expanding the board to ten members as part of its long-term succession plan. Bayardo, who has been with the company since 2015, will continue his role as President and COO without additional board compensation. NOV reported third-quarter 2025 financial results, highlighting revenues of $2.18 billion, a slight decrease from the previous year, and a net income of $42 million. Despite challenging market conditions, the company achieved strong free cash flow and maintained a robust book-to-bill ratio of 141%, driven by increased demand for offshore production equipment. NOV’s strategic focus on technology and operational efficiency positions it well for future growth, despite current industry challenges.

The most recent analyst rating on (NOV) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on NOV stock, see the NOV Stock Forecast page.

NOV Inc. Earnings Call: Balancing Growth and Challenges

The recent earnings call from NOV Inc. revealed a mixed sentiment, balancing between positive developments and notable challenges. While the company celebrated revenue growth, successful share repurchases, and advancements in digital automation, these were tempered by declines in drilling activity, rising tariff expenses, and market difficulties. Overall, the sentiment was neutral, reflecting both the highlights and lowlights discussed during the call.

NOV Inc. Reports Mixed Q2 2025 Financial Results

NOV Inc., a leading provider of technology-driven solutions for the energy industry, reported its financial results for the second quarter of 2025, showcasing its efforts to navigate a challenging market environment. The company is known for its innovations that enhance oilfield operations and support the energy transition towards sustainability.