📊 NOV Key Takeaways
Is NOV Inc. (NOV) a Good Investment?
NOV exhibits deteriorating operational fundamentals with negative operating cash flow (-$26M) and severely negative free cash flow (-$91M), indicating the core business is destroying shareholder value. Razor-thin margins (0.9% net, 2.3% operating), declining revenue, and essentially zero returns on capital (0.3% ROE, 0.2% ROA) suggest structural challenges beyond cyclical headwinds in the oil & gas equipment sector.
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 current ratio of 2.47x and $1.3B cash reserves
- Conservative leverage at 0.28x debt-to-equity providing financial flexibility
- Adequate balance sheet with $6.2B stockholders equity relative to $4.9B liabilities
- 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
- Negative operating cash flow (-$26M) proves core business cannot generate cash; negative free cash flow (-$91M) indicates value destruction
- Revenue declining YoY (-1.4%) with unsustainably thin operating margin of 2.3% and net margin of 0.9%
- Returns on capital essentially zero (ROE 0.3%, ROA 0.2%) indicating capital is not being deployed productively
- Weak interest coverage of 2.1x limits debt service cushion despite reasonable leverage ratios
- High insider activity with 29 Form 4 filings in 90 days suggests potential selling pressure
- 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
- Operating cash flow - must turn positive to demonstrate business viability
- Free cash flow trajectory - requires immediate improvement from -$91M burn rate
- Operating margin expansion - 2.3% is critically unsustainable
- Revenue stabilization - current -1.4% YoY decline must reverse
- Return on equity - 0.3% must improve significantly or capital should be returned
- 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 2.47x 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 |
|---|---|---|---|
| Q1 2026 | $2.1B | $19.0M | $0.05 |
| 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 |
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 SELL from Claude (SELL) and ChatGPT (HOLD) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NOV's key strengths?
Claude: Strong liquidity position with current ratio of 2.47x and $1.3B cash reserves. Conservative leverage at 0.28x debt-to-equity providing financial flexibility. 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: Negative operating cash flow (-$26M) proves core business cannot generate cash; negative free cash flow (-$91M) indicates value destruction. Revenue declining YoY (-1.4%) with unsustainably thin operating margin of 2.3% and net margin of 0.9%. 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 $2.1B.
Does NOV pay dividends?
NOV Inc. pays dividends, with $33.0M 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 $0.05.
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 May 2026, NOV Inc. has a SELL rating with 82% 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 0.3% (sector avg: 15%), net margin of 0.9% (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 SELL 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 $-26.0M, with capital expenditures of $65.0M. FCF margin is -4.4%.
How does NOV compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 0.9% (avg: 10%), ROE 0.3% (avg: 15%), current ratio 2.47 (avg: 1.8).