📊 NOV Key Takeaways
Is NOV Inc. (NOV) a Good Investment?
NOV demonstrates solid financial health with strong liquidity metrics and positive free cash flow generation, but faces headwinds from declining revenues and compressed profitability margins. The company's capital-light model and robust balance sheet provide stability, though deteriorating earnings trends and minimal ROE require cautious monitoring of operational efficiency recovery.
NOV shows solid financial resilience with strong liquidity, modest leverage, and healthy free cash flow generation despite a softer revenue base. However, profitability remains thin, returns on capital are weak, and the sharp diluted EPS decline points to lower earnings quality than the cash flow profile alone suggests. The fundamentals support stability more than near-term operating strength.
Why Buy NOV Inc. Stock? NOV Key Strengths
- Strong liquidity position with 2.42x current ratio and 1.67x quick ratio
- Solid free cash flow generation of $876M despite revenue decline
- Conservative leverage with 0.27x debt-to-equity ratio
- Adequate interest coverage of 5.6x indicating debt service capability
- Significant insider activity with 26 Form 4 filings suggesting management confidence
- Strong balance sheet with low debt-to-equity, ample cash, and solid current and quick ratios
- Robust free cash flow generation with $876M of FCF and a 10.0% FCF margin
- Positive operating income and reasonable interest coverage provide financial flexibility in a cyclical industry
NOV Stock Risks: NOV Inc. Investment Risks
- Revenue declining 1.4% YoY with net income down 4.0% YoY indicating accelerating profitability erosion
- Extremely weak profitability metrics with net margin of only 1.7% and ROE of 2.3%
- Sharp 75.6% YoY decline in diluted EPS signals significant earnings deterioration
- Operating margin compression at 5.6% suggests cost management challenges
- Capital-intensive business model limiting financial flexibility despite strong cash flow
- Revenue and net income are declining year over year, indicating limited top-line momentum
- Low net margin, ROE, and ROA suggest weak profitability and inefficient capital returns
- Large diluted EPS decline versus modest net income decline raises concern about earnings quality or below-the-line pressures
Key Metrics to Watch
- Revenue growth trajectory and segment performance recovery
- Operating margin expansion and gross margin sustainability
- Free cash flow consistency and capital expenditure trends
- Return on equity improvement and asset utilization efficiency
- Debt reduction progress and balance sheet optimization
- Operating margin and net margin recovery
- Revenue growth and free cash flow consistency
NOV Inc. (NOV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.42x current ratio provides a solid financial cushion.
NOV Profit Margin, ROE & Profitability Analysis
NOV vs Industrial Sector: How NOV Inc. Compares
How NOV Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NOV Inc. Stock Overvalued? NOV Valuation Analysis 2026
Based on fundamental analysis, NOV Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NOV Inc. Balance Sheet: NOV Debt, Cash & Liquidity
NOV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NOV Inc.'s revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $2.50 reflects profitable operations.
NOV Revenue Growth, EPS Growth & YoY Performance
NOV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.2B | $42.0M | $0.11 |
| Q2 2025 | $2.2B | $108.0M | $0.29 |
| Q1 2025 | $2.1B | $73.0M | $0.19 |
| Q3 2024 | $2.2B | $114.0M | $0.29 |
| Q2 2024 | $2.1B | $155.0M | $0.39 |
| Q1 2024 | $2.0B | $119.0M | $0.30 |
| Q3 2023 | $1.9B | $32.0M | $0.08 |
| Q2 2023 | $1.7B | $19.0M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NOV Inc. Dividends, Buybacks & Capital Allocation
NOV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NOV Inc. (CIK: 0001021860)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NOV
What is the AI rating for NOV?
NOV Inc. (NOV) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NOV's key strengths?
Claude: Strong liquidity position with 2.42x current ratio and 1.67x quick ratio. Solid free cash flow generation of $876M despite revenue decline. ChatGPT: Strong balance sheet with low debt-to-equity, ample cash, and solid current and quick ratios. Robust free cash flow generation with $876M of FCF and a 10.0% FCF margin.
What are the risks of investing in NOV?
Claude: Revenue declining 1.4% YoY with net income down 4.0% YoY indicating accelerating profitability erosion. Extremely weak profitability metrics with net margin of only 1.7% and ROE of 2.3%. ChatGPT: Revenue and net income are declining year over year, indicating limited top-line momentum. Low net margin, ROE, and ROA suggest weak profitability and inefficient capital returns.
What is NOV's revenue and growth?
NOV Inc. reported revenue of $8.7B.
Does NOV pay dividends?
NOV Inc. pays dividends, with $190.0M distributed to shareholders in the trailing twelve months.
Where can I find NOV SEC filings?
Official SEC filings for NOV Inc. (CIK: 0001021860) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NOV's EPS?
NOV Inc. has a diluted EPS of $0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NOV a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NOV Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NOV stock overvalued or undervalued?
Valuation metrics for NOV: ROE of 2.3% (sector avg: 15%), net margin of 1.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NOV stock in 2026?
Our dual AI analysis gives NOV Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NOV's free cash flow?
NOV Inc.'s operating cash flow is $1.3B, with capital expenditures of $375.0M. FCF margin is 10.0%.
How does NOV compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 1.7% (avg: 10%), ROE 2.3% (avg: 15%), current ratio 2.42 (avg: 1.8).