NOV (NOV) AI Stock Analysis

• Market Cap: $4.91B
• Dividend Yield: 2.27%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.68
• Revenue Growth: 0.54%
• EPS Growth: -39.88%
• Country: US
• Employees: 34,010
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.22
• Shares Outstanding: 375,738,430
• 10 Day Avg. Volume: 5,540,707
• 30 Day Avg. Volume: 4,109,586
• PEG Ratio: -1.28
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.41
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 1.32
• 1Y Price Target: $15.62
• Price Target Upside: 19.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $15.00 ▲(14.68%Upside)

NOV's overall stock score reflects a strong financial foundation and attractive valuation, tempered by mixed technical indicators and macroeconomic challenges. The company's strategic initiatives and shareholder-friendly actions provide additional support for the stock's potential.

Positive Factors

Free Cash Flow

The company expects to convert 50% of EBITDA to free cash flow, with cash flow conversion building over the remainder of the year.

Market Performance

The stock jumped 13% on better than expected margin and free cash flow outlook.

Shareholder Returns

Management affirmed its commitment to distribute 50% of future free cash flow to shareholders through a combination of regular and supplemental dividends and opportunistic share buybacks.

Negative Factors

Earnings Performance

NOV underperformed the OIH by ~250bps after guiding 2Q and '25 EBITDA ~3% and 7% below consensus.

Future Earnings Outlook

NOV expects 3Q+ to get 'tougher, perhaps much tougher' with a likely decline in industry activity.

Revenue Decline

Within EP&S, revenues are expected to decline ~2% in 2H versus rising 3-5% per guidance.

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 Inc. generates revenue primarily through the sale and rental of equipment and technologies essential for oil and gas drilling and production. The Rig Technologies segment contributes significantly to revenue by providing capital equipment and integrated systems for drilling rigs. The Wellbore Technologies segment earns income by supplying a wide array of tools and technologies for drilling and formation evaluation, while the Completion & Production Solutions segment focuses on equipment and technologies for well completion, stimulation, and production optimization. NOV also benefits from service contracts, aftermarket sales, and repair services, which provide recurring revenue. Strategic partnerships with oil and gas operators and ongoing investments in technology and innovation further support NOV's revenue streams.

NOV Financial Statement Overview

Summary

NOV demonstrates strong financial health with solid revenue growth, profitability, and cash flow generation. The company has improved its net profit margin and maintains a healthy balance sheet with manageable leverage.

Income Statement

The income statement shows a strong recovery with a consistent increase in total revenue over the years. Gross Profit Margin for TTM is approximately 24.15%, indicating robust cost management. The Net Profit Margin improved significantly from negative values in 2020 to 6.68% in TTM, reflecting improved profitability. EBIT and EBITDA margins are healthy at 11.31% and 12.96% respectively, suggesting effective operational efficiency.

Balance Sheet

The balance sheet is solid with a Debt-to-Equity Ratio of 0.37, showing manageable leverage levels. The Return on Equity (ROE) for TTM is 9.07%, which is a positive indicator of profitability relative to equity. The Equity Ratio is stable at 57.61%, indicating a strong equity base relative to total assets.

Cash Flow

Cash flow statements indicate strong free cash flow generation with a Free Cash Flow to Net Income Ratio of 1.95 in TTM, showing efficient cash management. The Operating Cash Flow to Net Income Ratio is 2.58, highlighting strong cash generation from operations. Free Cash Flow has grown significantly compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.82B	8.87B	8.58B	7.24B	5.52B	6.09B
Gross Profit	2.13B	2.01B	1.83B	1.33B	774.00M	434.00M
EBITDA	1.22B	1.26B	1.00B	617.00M	153.00M	-2.34B
Net Income	589.00M	635.00M	993.00M	155.00M	-245.00M	-2.54B
Balance Sheet
Total Assets	11.27B	11.36B	11.29B	10.13B	9.55B	9.93B
Cash, Cash Equivalents and Short-Term Investments	1.16B	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	4.78B	4.93B	5.05B	5.00B	4.49B	4.65B
Stockholders Equity	6.44B	6.38B	6.17B	5.13B	5.06B	5.28B
Cash Flow
Free Cash Flow	1.15B	953.00M	-140.00M	-393.00M	90.00M	700.00M
Operating Cash Flow	1.52B	1.30B	143.00M	-179.00M	291.00M	926.00M
Investing Cash Flow	-241.00M	-471.00M	-293.00M	-238.00M	-196.00M	-144.00M
Financing Cash Flow	-584.00M	-406.00M	-103.00M	-96.00M	-189.00M	-259.00M

NOV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 13.08 is below the 20-day moving average (MA) of 13.12, above the 50-day MA of 12.47, and below the 200-day MA of 14.11, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 51.15 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	81 Outperform	$14.63B	18.42	27.24%	0.58%	14.26%	294.37%
SLB	77 Outperform	$48.49B	12.09	20.82%	3.17%	5.83%	-2.03%
HAL	75 Outperform	$18.66B	9.10	20.99%	3.13%	-2.54%	-17.53%
NOV	74 Outperform	$4.91B	8.72	9.29%	2.27%	0.54%	-39.88%
BKR	70 Outperform	$39.27B	13.54	18.04%	2.31%	6.22%	62.58%
CHX	68 Neutral	$5.00B	17.25	16.16%	1.44%	-4.17%	-17.99%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%

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.