NOV (NOV) AI Stock Analysis

• Market Cap: $6.45B
• Dividend Yield: 3.24%
• Average Volume (3M): 3.52M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.83
• 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: 3,775,107
• 30 Day Avg. Volume: 3,524,395
• 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: 0.95
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 6.42
• 1Y Price Target: $17.83
• Price Target Upside: 0.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $19.50 ▲(10.23% Upside)

NOV's overall stock score reflects a stable financial position with positive technical indicators and reasonable valuation. The leadership transition and strategic focus on growth opportunities provide a positive outlook, despite challenges in revenue growth and cash flow generation.

Positive Factors

Leadership Transition

The leadership transition to Jose Bayardo, with his extensive experience, is expected to guide NOV into its next growth phase, ensuring operational efficiency and continuity.

International Expansion

Expanding demand in international markets like Argentina and Saudi Arabia positions NOV for growth, leveraging its global presence and diversified offerings.

Cost Control and Cash Flow

Strong project execution and cost control measures enhance NOV's cash flow generation, supporting financial stability and future investments.

Negative Factors

Revenue Decline

The significant decline in revenue growth poses a challenge to NOV's financial health, necessitating strategic actions to reverse the trend and sustain profitability.

Softening North American Market

The softening of the North American market affects product demand, potentially hindering NOV's revenue streams and requiring strategic market adjustments.

Challenges from Tariffs and Inflation

Rising tariff expenses and inflationary pressures threaten NOV's margins, requiring cost management strategies to mitigate these impacts on profitability.

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 generates revenue primarily through the sale of its equipment and services to the oil and gas sector. Key revenue streams include the manufacturing and leasing of drilling rigs, the provision of wellbore technologies such as drilling fluids and bits, and the sale of completion and production equipment. The company also engages in aftermarket services, providing maintenance and support for its products, which contributes to a steady revenue flow. Furthermore, NOV has formed strategic partnerships with various oil and gas companies, which helps to secure long-term contracts and projects, enhancing its revenue stability. The cyclical nature of the oil and gas industry can impact earnings, but NOV's diversified product offerings and global presence help mitigate risks associated with market fluctuations.

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: 17.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 17.69 is above the 20-day moving average (MA) of 16.37, above the 50-day MA of 15.84, and above the 200-day MA of 13.48, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.49 is Negative, 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	$21.13B	23.42	28.72%	0.44%	11.73%	45.70%
BKR	76 Outperform	$49.32B	17.21	16.83%	2.04%	1.51%	30.09%
NOV	72 Outperform	$6.45B	17.67	5.93%	3.24%	-1.43%	-63.13%
HAL	71 Outperform	$27.81B	21.88	12.77%	2.41%	-4.06%	-47.41%
SLB	70 Outperform	$70.17B	18.15	15.46%	2.98%	-2.13%	-16.76%
WFRD	70 Outperform	$6.22B	15.65	27.88%	1.25%	-10.19%	-23.74%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

NOV Corporate Events

NOV Announces Leadership Transition with New CEO

On NOVember 19, 2025, NOV Inc. announced the retirement of its Chairman and CEO, Clay C. Williams, effective February 28, 2026, with Jose A. Bayardo set to succeed him as Chairman, President, and CEO starting January 1, 2026. This leadership transition is part of NOV’s long-term succession planning, with Bayardo’s extensive experience in upstream oilfield operations expected to guide the company into its next phase of growth, ensuring operational efficiency and shareholder value.

The most recent analyst rating on (NOV) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on NOV stock, see the NOV Stock Forecast page.

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.