NOV Inc.

NOV Inc.

NOVยทNYSE

$20.82

-0.83%
EnergyOil & Gas Equipment & Services

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.

At a Glance

Live Snapshot
Market Cap$7.47B
EPS0.3900
P/E Ratio53.38
Earnings Date07/27/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 53.4).

Valuation inputs: P/E 53.4, earnings yield +1.9%, momentum -0.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +2.3%, ROIC +2.5%).

Profitability stack: net margin +1.7%, ROE +2.3%, ROIC +2.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +44.0%, momentum -0.8%, net margin +1.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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NOV Inc. Market vs Earnings Trajectory

NOV ยท NYSE

Loading price and EPS data...

NOV Inc.

NOV Inc. Fair Value Envelope

NOV ยท NYSE

Our analysis suggests that NOV has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $20.82, this represents a potential HIDDEN relative to our calculated worth for NOV Inc..

Intrinsic Value
Current Price: $20.82
3Y-3.0%
5Y-106.0%
10Y-106.0%
3Y+21.0%
5Y+44.0%
10Y+21.0%
3Y-6.0%
5Y-106.0%
10Y-106.0%
3Y-792.0%
5Y+34.0%
10Y+29.0%
3Y-320.0%
5Y+23.0%
10Y+28.0%
3Y+11.0%
5Y+14.0%
10Y-47.0%
NOV Inc.

NOV Inc. Profit Bridge

NOV ยท NYSE
Revenue8.74B
Cost of Goods Sold (6.98B)
Gross Profit1.77B
Operating Expenses (1.20B)
Operating Income564.00M
Interest Expense (88.00M)
Other Income/Expense-189.00M
Pretax Income375.00M
Income Tax (224.00M)
Net Income145.00M
Net Income
145.00M

Profitability Analysis

Gross Margin

20.2%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

6.5%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

1.7%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

59.7%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

20.21%
Gross Profit Margin
-11%
3Y+10.0%
5Y+190.0%
10Y+1623.0%
6.45%
Operating Profit Margin
-35%
3Y+77.0%
5Y-172.0%
10Y-137.0%
1.66%
Net Profit Margin
-77%
3Y-23.0%
5Y-104.0%
10Y-105.0%
2.31%
Return on Equity
-77%
3Y-24.0%
5Y-105.0%
10Y-113.0%
1.28%
Return on Assets
-77%
3Y-16.0%
5Y-105.0%
10Y-111.0%
2.52%
Return on Invested Capital
-66%
3Y+14.0%
5Y-141.0%
10Y-141.0%
NOV

NOV Inc. Cash Conversion Engine

NOV ยท NYSE
Net Income145.00M
Depreciation & Amortization355.00M
Stock-Based Compensation0.00
Change in Working Capital409.00M
Others237.00M
Capital Expenditures-375.00M
Free Cash Flow864.00M

Cash Flow Quality Analysis

FCF Conversion Rate

595.9%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

30.3%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-9.3%

Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.

Working Capital Impact

+$409.00M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Solid cash generation: Positive free cash flow with reasonable earnings quality provides financial flexibility for growth investments, debt reduction, or shareholder returns.

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NOV Inc. Funding & Solvency Profile

NOV ยท NYSE
Cash & Cash Equivalents1.34B
Net Receivables2.30B
Inventory1.87B
Other Current Assets207.00M
Total Current Assets6 B
Property, Plant & Equipment2.52B
Goodwill & Intangible Assets2.02B
Long-Term Investments165.00M
Other Non-Current Assets364.00M
Total Non-Current Assets3 B
Total Assets
11.14B

Financial Health Analysis

Current Ratio

2.47x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.78x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

3 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

51% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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NOV Inc. Street Expectations Map

NOV ยท NYSE

Wall Street analysts project that NOV stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 20.13, with estimates ranging from a low of 17.00 to a high of 24.00.

Lowest Target
17.00
-18.35%
Consensus Target
20.13
-3.31%
Highest Target
24.00
15.27%

The consensus 1-year price target stands at 20.13, with estimates ranging from a low of 17.00 to a high of 24.00.

Analyst Consensus Analysis

Upside Potential

-3.3%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

34.8% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

0.83x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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NOV Inc. Insider Positioning

NOV ยท NYSE

During the last 12 months, insiders have purchased $725K and sold $406K worth of NOV shares, resulting in $319K of net buying activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

20.0K

406.44K

Net Activity

-406K

-$406K

6-9 Months

Bought

50.0K

725.00K

Sold

0

0.00

Net Activity

+725K

+$725K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
KCS

Kendall Christian S

Director

50.0K sharesโ€ข1 transactions

$725K

Top Sellers

1
WCL

Weinstock Craig L.

Officer: Sr. Vp. & Gen. Counsel

20.0K sharesโ€ข1 transactions

$406K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Moderately bullish with $319K net buying. Insiders show cautious optimism through measured share purchases.

Buy/Sell Ratio

1.78:1

Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.

Insider Participation

Balanced

1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.

0.49%
Dividend Yield
2%
3Y+77.0%
5Y-
10Y+222.0%
ย 

nov Dividend History

NOV
10Y CAGR 15%
Latest $0.09
Annual $0.495
Stable dividend payments
Last Period: +0%