Investment Thesis
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 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
NOV 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
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
NOV Financial Metrics
NOV Profitability Ratios
NOV Balance Sheet & Liquidity
NOV 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 Growth Metrics (YoY)
NOV Quarterly 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 Capital Allocation
NOV SEC Filings
Access official SEC EDGAR filings for NOV Inc. (CIK: 0001021860)