NOV Inc. (NYSE: NOV)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0001021860
Market Cap 7.09 Bn
P/B 1.13
P/E 48.90
P/S 0.81
ROIC (Qtr) -6.41
Div Yield % 2.67
Rev 1y % (Qtr) -1.34
Total Debt (Qtr) 2.34 Bn
Debt/Equity (Qtr) 0.37
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About

NOV Inc., also known as NOV, is a prominent independent equipment and technology provider within the global energy industry. With a storied history dating back to 1862, NOV has spent over 160 years innovating and enhancing oil and gas field development, making it more cost-effective, efficient, safe, and environmentally friendly. NOV's extensive proprietary technology portfolio supports the industry's full-field drilling, completion, and production needs in 61 countries. NOV's primary business activities revolve around energy equipment and energy...

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Investment thesis

Bull case

  • Strong operating cash flow of 1.25B provides robust 0.53x coverage of total debt 2.34B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.55B provide 11.85x coverage of short-term debt 131M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 9.25B provides 3.95x coverage of total debt 2.34B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.25B provides exceptional 208.50x coverage of minority interest expenses 6M, showing strong core operations.
  • Operating cash flow of 1.25B provides exceptional 14.22x coverage of interest expenses 88M, showing strong debt service capability.

Bear case

  • Operating cash flow of 1.25B barely covers its investment activities of (362M), with a coverage ratio of -3.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.25B provides thin coverage of dividend payments of (190M) with a -6.58 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 457M show weak coverage of depreciation charges of 355M, with a 1.29 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 876M represents just -17.18x of debt issuance (51M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of (673M) provide limited buffer against comprehensive income items of (1.42B), which is 0.47x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.73 1.17
EV to Cash from Ops. EV/CFO 6.59 -3.30
EV to Debt EV to Debt 3.52 10.99
EV to EBIT EV/EBIT 18.03 4.49
EV to EBITDA EV/EBITDA 9.70 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 9.40 31.31
EV to Market Cap EV to Market Cap 1.16 1.36
EV to Revenue EV/Rev 0.94 2.02
Price to Book Value [P/B] P/B 1.13 1.73
Price to Earnings [P/E] P/E 48.90 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.76 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 130.80 5.49
Dividend per Basic Share Div per Share (Qtr) 0.51 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.66 6.68
Interest Coverage Int. cover (Qtr) 5.19 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -6.84 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.18 1,334.16
Dividend Growth (1y) % Div 1y % (Qtr) 85.45 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -74.51 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.35 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -50.43 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) -55.60 39.97
EPS Growth (1y) % EPS 1y % (Qtr) -75.93 27.30
FCF Growth (1y) % FCF 1y % (Qtr) -8.08 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.09 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.10
Cash Ratio Cash Ratio (Qtr) 0.65 0.62
Current Ratio Curr Ratio (Qtr) 2.42 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.37 0.88
Interest Cover Ratio Int Coverage (Qtr) 5.19 -10.19
Times Interest Earned Times Interest Earned (Qtr) 5.19 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.30 16.47
EBIT Margin % EBIT Margin % (Qtr) 5.23 -0.62
EBT Margin % EBT Margin % (Qtr) 4.22 4.39
Gross Margin % Gross Margin % (Qtr) 20.20 30.41
Net Profit Margin % Net Margin % (Qtr) 1.70 2.67