NOV Inc. (NOV)
NYSE:NOV
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NOV
(NYSE:NOV)
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Rating:58Neutral
Price Target:
$19.50
▲(0.05% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
NOV (NOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.02B
Dividend Yield3.24%
Average Volume (3M)4.78M
Price to Earnings (P/E)40.1
Beta (1Y)0.82
Revenue Growth-1.43%
EPS Growth-63.13%
CountryUS
Employees34,010
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.21
Shares Outstanding360,404,540
10 Day Avg. Volume4,191,081
30 Day Avg. Volume4,777,706
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 Cap1.11
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit4.42
Enterprise Value/Ebitda9.56
Forecast
1Y Price Target
$20.17Price Target Upside3.49% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.98
Revenue Forecast (FY)$8.64B
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:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call presented a mostly constructive picture: the company demonstrated strong cash generation, improved working capital and segment-level wins (notably subsea flexible pipe, Process Systems and Energy Equipment), a healthy backlog and a very conservative balance sheet. These positives are balanced against near-term challenges including a Q4 net loss, an $86M impairment, tariff and inflation pressures, weaker aftermarket and short-cycle demand, and guidance for slightly lower revenue and materially lower cash conversion in 2026. Management emphasized operational efficiency, a $100M cost-out program, disciplined M&A and optimism for an offshore-led recovery in late 2026–2027. Overall, the strengths and demonstrated resilience outweigh the short-term headwinds, but the company signals a cautious near-term outlook.Positive Updates
Quarterly and Annual Revenue Resilience
Q4 2025 revenue of $2.28B (+5% sequential, -1% year-over-year); full year 2025 revenue of $8.74B (-1% year-over-year).
Negative Updates
Q4 Net Loss and Asset Impairments
Reported Q4 net loss of $78M ($0.21 per diluted share). Recorded $86M in other items, primarily impairment of goodwill and long-lived assets.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Annual Revenue Resilience
Q4 2025 revenue of $2.28B (+5% sequential, -1% year-over-year); full year 2025 revenue of $8.74B (-1% year-over-year).
Read all positive updates
Company Guidance
The company guided that 2026 will likely see slightly lower revenue versus 2025 with results weighted to the back half of the year and full‑year EBITDA “in line to slightly lower” than 2025’s adjusted EBITDA of about $1.03 billion; they expect adjusted EBITDA‑to‑free‑cash‑flow conversion to decline to roughly 40%–50% in 2026 (vs. >85% over the last two years), capital expenditures of $315–$345 million, and a higher effective tax rate of ~34%–36%. Near‑term specifics include Q1 segment guidance: Energy Equipment revenue up 3%–5% YoY with EBITDA $145–$165 million, and Energy Products & Services revenue down 6%–8% YoY with EBITDA $105–$125 million. Other balance‑sheet and operating metrics cited were backlog $4.34 billion, 2025 revenue $8.74 billion (Q4 $2.28 billion) and Q4 adjusted EBITDA $267 million (11.7% margin), book‑to‑bill ~91% for 2025 and expected near 1.0x for 2026, tariff headwinds (~$25 million Q4; >$50 million for 2025) that may tick up slightly in Q1, net debt/EBITDA ~0.2x, cash conversion cycle 119 days (working capital <22%), and expected FPSO FIDs of up to ~10 in 2026 (avg. ~8/yr through 2030).NOV Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
66
Positive
| 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
Positive
19.49
Price Trends
19.14
Positive
17.73
Positive
15.41
Positive
Market Momentum
0.10
Negative
54.49
Neutral
57.74
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 19.49 is above the 20-day moving average (MA) of 19.02, above the 50-day MA of 19.14, and above the 200-day MA of 15.41, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 57.74 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $29.52B | 19.37 | 29.62% | 0.44% | 11.73% | 45.70% | |
74 Outperform | $77.94B | 16.85 | 14.64% | 2.98% | -2.13% | -16.76% | |
69 Neutral | $62.09B | 17.39 | 14.43% | 2.04% | 1.51% | 30.09% | |
69 Neutral | $7.37B | 13.11 | 28.18% | 1.25% | -10.19% | -23.74% | |
66 Neutral | $31.48B | 18.48 | 12.36% | 2.41% | -4.06% | -47.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $7.02B | 40.10 | 2.26% | 3.24% | -1.43% | -63.13% |
* Energy Sector Average
NOV
NOV
19.49
7.91
68.35%
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NOV Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
NOV Announces Resignation of Board Director Ben Guill
Neutral
Feb 20, 2026
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 ...
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.