NOV Inc. (NOV)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
NOV Inc. (NOV) trades at $18.68 with AI Score 45/100 (Weak). NOV Inc. is a global provider of equipment and technologies for the oil and gas industry, operating through Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. Market cap: 7B, Sector: Energy.
Last analyzed: Feb 8, 2026NOV Inc. (NOV) Energy Operations & Outlook
NOV Inc. delivers innovative equipment and technologies for oil and gas drilling and production, leveraging its comprehensive portfolio and global presence to capitalize on the increasing demand for energy and infrastructure development, offering a notable research candidate in the energy sector.
Investment Thesis
NOV Inc. presents a notable research candidate due to its established market position, diverse product offerings, and exposure to the growing energy sector. With a market capitalization of $6.90 billion and a dividend yield of 2.70%, NOV offers a blend of value and income potential. The company's three segments are poised to benefit from increased drilling activity and infrastructure development. Key value drivers include the company's ability to innovate and develop new technologies, expand its presence in emerging markets, and capitalize on the increasing demand for offshore production systems. The company's beta of 0.91 indicates lower volatility compared to the broader market. Investors may want to evaluate NOV's potential for long-term growth and its commitment to returning value to shareholders.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $6.90 billion, reflecting its significant presence in the oil and gas equipment and services industry.
- Dividend yield of 2.70%, providing a steady income stream for investors.
- Gross margin of 20.2%, indicating its ability to maintain profitability in a competitive market.
- P/E ratio of 47.47, suggesting potential for earnings growth.
- Beta of 0.91, indicating lower volatility compared to the broader market.
Competitors & Peers
Strengths
- Comprehensive product portfolio and diverse service offerings.
- Global presence and extensive distribution network.
- Strong focus on innovation and technology development.
- Established market position and brand recognition.
Weaknesses
- Cyclical demand and exposure to oil price volatility.
- High capital expenditures and research and development costs.
- Dependence on the oil and gas industry.
- Profit margin of 1.7% is relatively low.
Catalysts
- Ongoing: Increased drilling activity and infrastructure development.
- Ongoing: Rising demand for offshore production systems.
- Ongoing: Adoption of advanced drilling technologies.
- Ongoing: Expansion in emerging markets.
Risks
- Potential: Oil price volatility and cyclical demand.
- Potential: Technological obsolescence.
- Potential: Environmental regulations and concerns.
- Ongoing: Competition from other oil and gas equipment and service providers.
Growth Opportunities
- Expansion in offshore production systems: The increasing demand for offshore oil and gas production presents a significant growth opportunity for NOV. The market for offshore production systems is expected to grow at a CAGR of 4-6% over the next five years, driven by the discovery of new offshore reserves and the need for advanced technologies. NOV's expertise in floating production systems and subsea production technologies positions it to capitalize on this trend. Timeline: Ongoing.
- Development of advanced drilling technologies: The demand for more efficient and cost-effective drilling technologies is driving innovation in the oil and gas industry. NOV's focus on drilling optimization and automation services positions it to benefit from this trend. The market for advanced drilling technologies is expected to grow at a CAGR of 5-7% over the next five years. Timeline: Ongoing.
- Growth in hydraulic fracturing equipment and services: The hydraulic fracturing market is expected to continue to grow, driven by the increasing demand for shale gas and oil. NOV's comprehensive suite of equipment and technologies for hydraulic fracture stimulation positions it to capitalize on this trend. The market for hydraulic fracturing equipment and services is expected to grow at a CAGR of 3-5% over the next five years. Timeline: Ongoing.
- Penetration of renewable energy sector: NOV's expertise in equipment components for offshore wind construction vessels and pipelay and construction systems presents a growth opportunity in the renewable energy sector. The market for offshore wind energy is expected to grow significantly over the next decade, driven by government incentives and the increasing demand for clean energy. Timeline: Ongoing.
- Geographic expansion in emerging markets: The increasing demand for energy in emerging markets presents a significant growth opportunity for NOV. The company's global presence and diverse product offerings position it to capitalize on this trend. Emerging markets such as Asia and Africa are expected to drive growth in the oil and gas industry over the next decade. Timeline: Ongoing.
Opportunities
- Expansion in offshore production systems.
- Development of advanced drilling technologies.
- Growth in hydraulic fracturing equipment and services.
- Penetration of renewable energy sector.
Threats
- Competition from other oil and gas equipment and service providers.
- Technological obsolescence.
- Environmental regulations and concerns.
- Economic downturns and reduced drilling activity.
Competitive Advantages
- Established market position and brand recognition.
- Comprehensive product portfolio and diverse service offerings.
- Global presence and extensive distribution network.
- Strong focus on innovation and technology development.
About NOV
NOV Inc., established in 1862 and headquartered in Houston, Texas, is a leading global provider of equipment and technologies to the oil and gas industry. The company operates through three primary segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. NOV's Wellbore Technologies segment offers a comprehensive suite of products and services for drilling optimization, including drill bits, downhole tools, and tubular services. The Completion & Production Solutions segment provides equipment and technologies for hydraulic fracturing, coiled tubing, and offshore production. The Rig Technologies segment focuses on designing and manufacturing drilling rigs and related equipment. NOV's products and services are utilized in both onshore and offshore operations worldwide. The company has evolved from its origins as a supplier of oilfield equipment to a diversified technology and service provider, adapting to the changing needs of the energy industry. In January 2021, National Oilwell Varco, Inc. changed its name to NOV Inc., reflecting its broader focus on innovation and technology.
What They Do
- Designs and manufactures equipment for oil and gas drilling and production.
- Provides systems and components for wellbore technologies.
- Offers completion and production solutions.
- Manufactures and sells drilling rigs and related equipment.
- Provides solids control and waste management equipment and services.
- Offers portable power generation products.
- Provides tubular inspection, repair, and coating services.
- Offers spare parts, repair, and rental services.
Business Model
- Sells equipment and technologies to oil and gas companies.
- Provides services such as drilling optimization and automation.
- Offers spare parts, repair, and rental services.
- Generates revenue from three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies.
Industry Context
NOV Inc. operates in the oil and gas equipment and services industry, which is characterized by cyclical demand and technological innovation. The industry is influenced by factors such as oil prices, drilling activity, and infrastructure development. According to industry reports, the global oil and gas equipment market is expected to grow at a CAGR of 3-5% over the next five years, driven by increasing energy demand and the need for advanced technologies. NOV competes with companies such as AROC (Archrock Inc.), CHRD (Chord Energy Corporation), CNX (CNX Resources Corporation), FRO (Frontline PLC), and MTDR (Matador Resources Company), each with their own strengths and weaknesses. NOV's competitive advantage lies in its comprehensive product portfolio, global reach, and focus on innovation.
Key Customers
- Oil and gas exploration and production companies.
- Drilling contractors.
- Service companies in the oil and gas industry.
- Companies in the renewable energy sector.
Financials
Chart & Info
NOV Inc. (NOV) stock price: $18.68 (+0.09, +0.48%)
Latest News
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Forum Energy Shares Soar 192.5% in a Year: Time to Hold or Exit?
Yahoo! Finance: NOV News · Mar 18, 2026
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NOV Appoints Sanjay Chowbey, President & CEO of Kennametal Inc., to the Board of Directors
globenewswire.com · Mar 17, 2026
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NOV Announces First Quarter 2026 Earnings Conference Call
globenewswire.com · Mar 16, 2026
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NOV Inc. (NYSE:NOV) Given Consensus Rating of “Hold” by Analysts
defenseworld.net · Mar 10, 2026
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NOV.
Price Targets
Consensus target: $19.57
MoonshotScore
What does this score mean?
The MoonshotScore rates NOV's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Forum Energy Shares Soar 192.5% in a Year: Time to Hold or Exit?
NOV Appoints Sanjay Chowbey, President & CEO of Kennametal Inc., to the Board of Directors
NOV Announces First Quarter 2026 Earnings Conference Call
NOV Inc. (NYSE:NOV) Given Consensus Rating of “Hold” by Analysts
Latest NOV Inc. Analysis
What Investors Ask About NOV Inc. (NOV)
What does NOV Inc. do?
NOV Inc. is a global leader in providing equipment and technologies for the oil and gas industry. The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. NOV designs, manufactures, and sells a wide range of products and services, including drilling equipment, pressure pumping, and offshore production systems. The company's products and services are utilized in both onshore and offshore operations worldwide, making it a critical player in the energy sector. NOV also provides spare parts, repair, and rental services, offering comprehensive support to its customers.
Is NOV stock worth researching?
NOV stock presents a mixed investment case. The company's established market position, diverse product offerings, and exposure to the growing energy sector are positive factors. However, the company's P/E ratio of 47.47 suggests that it may be overvalued. Investors may want to evaluate the company's growth potential, dividend yield of 2.70%, and the cyclical nature of the oil and gas industry. A balanced approach, considering both the potential upside and the inherent risks, is recommended before investing in NOV stock. Monitoring industry trends and company performance is crucial.
What are the main risks for NOV?
NOV faces several risks, including oil price volatility, technological obsolescence, and environmental regulations. The cyclical nature of the oil and gas industry can significantly impact the company's revenue and profitability. Technological advancements may render some of NOV's products and services obsolete. Environmental regulations and concerns could increase compliance costs and limit drilling activity. Competition from other oil and gas equipment and service providers also poses a threat to NOV's market share. These risks should be carefully considered before investing in NOV.
What are the key factors to evaluate for NOV?
NOV Inc. (NOV) currently holds an AI score of 45/100, indicating low score. The stock trades at a P/E of 46.3x, above the S&P 500 average (~20-25x), suggesting high growth expectations. Analysts target $19.57 (+5% from $18.68). Key strength: Comprehensive product portfolio and diverse service offerings.. Primary risk to monitor: Potential: Oil price volatility and cyclical demand.. This is not financial advice.
How frequently does NOV data refresh on this page?
NOV prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven NOV's recent stock price performance?
Recent price movement in NOV Inc. (NOV) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $19.57 implies 5% upside from here. Notable catalyst: Comprehensive product portfolio and diverse service offerings.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider NOV overvalued or undervalued right now?
Determining whether NOV Inc. (NOV) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 46.3. Analysts target $19.57 (+5% from current price), suggesting analysts see the stock near fair value. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying NOV?
Before investing in NOV Inc. (NOV), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and analysis.
- Investment decisions should be made based on individual risk tolerance and financial goals.
- This is not financial advice.