NOV (NOV) AI Stock Analysis

• Market Cap: $7.07B
• Dividend Yield: 3.24%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 18.7
• 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): -0.46
• Shares Outstanding: 364,752,870
• 10 Day Avg. Volume: 4,537,864
• 30 Day Avg. Volume: 3,641,227
• 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: 1.16
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $18.80
• Price Target Upside: 0.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $20.50 ▲(9.22% 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

Strong backlog and book-to-bill

A $4.56bn backlog and 141% book-to-bill provide multi-quarter revenue visibility for capital equipment, supporting production planning and margin recovery. High booked demand signals durable demand for large projects, smoothing near-term cyclicality and underpinning revenue outlook.

Diversified product lines and global footprint

Multi-segment operations and global exposure reduce dependence on any single geography or product cycle, allowing NOV to capture different parts of the oilfield value chain. Diversification and aftermarket services support steadier revenues and resilience through regional or commodity swings.

Moderate leverage and solid equity base

A low debt-to-equity ratio and a strong equity ratio provide financial flexibility to fund capex, R&D, or opportunistic M&A without over-leveraging. This balance-sheet strength supports investment through industry cycles and helps sustain operations when revenues temporarily weaken.

Negative Factors

Declining revenue trend

A 17% TTM revenue decline erodes operating scale and can pressure gross and operating margins over multiple quarters. Reduced top-line momentum limits reinvestment capacity and makes hitting medium-term growth targets harder unless demand or market share improves sustainably.

Weak free cash flow generation

Negative FCF growth and a suboptimal free-cash-flow-to-net-income ratio indicate limited internal funding for capex, dividends, or debt paydown. Persistent FCF weakness constrains strategic flexibility and increases reliance on external financing during prolonged industry downturns.

Aftermarket revenue decline & regional softness

A 19% drop in aftermarket sales is material because aftermarket is recurring, higher-margin revenue. Combined with North American softness, this weakens gross margin resilience and recurring cash flow, raising risk that short-cycle service demand may remain subdued for several quarters.

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: 18.77
• 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 18.77 is above the 20-day moving average (MA) of 18.14, above the 50-day MA of 16.76, and above the 200-day MA of 13.91, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.30 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
BKR	76 Outperform	$58.39B	22.31	14.42%	2.04%	1.51%	30.09%
FTI	76 Outperform	$22.87B	25.70	28.72%	0.44%	11.73%	45.70%
SLB	73 Outperform	$76.79B	21.19	14.28%	2.98%	-2.13%	-16.76%
NOV	72 Outperform	$7.07B	18.75	5.93%	3.24%	-1.43%	-63.13%
WFRD	70 Outperform	$7.17B	16.19	27.88%	1.25%	-10.19%	-23.74%
HAL	66 Neutral	$28.90B	22.52	12.24%	2.41%	-4.06%	-47.41%
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.