IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 48.1GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
5.7%
Sector: 8.9%
Dividend Analysis audit
INCOME
3.87%
Trailing Yield
$3.87
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
74%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, NOV Inc. (NOV) receives a "Hold" rating with a composite score of 49.2/100, ranked #927 out of 4446 stocks. Key factor scores: Quality 48/100, Value 64/100, Momentum 62/100. This is quantitative analysis only — not investment advice.
NOV Inc. (NOV) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NOV Inc. Do?
NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors worldwide. The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. It also provides solids control and waste management equipment and services; portable power generation products; drill and wired pipes; drilling optimization and automation services; tubular inspection, repair, and coating services; instrumentation; measuring and monitoring services; downhole and fishing tools; steerable technologies; and drill bits. The company offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers. It also provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems. NOV Inc. offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training. The company was formerly known as National Oilwell Varco, Inc. and changed its name to NOV Inc. in January 2021. NOV Inc. was founded in 1862 and is based in Houston, Texas. NOV Inc. (NOV) is classified as a mid-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Clay C. Williams and employs approximately 32,300 people, headquartered in Houston, Texas. With a market capitalization of $6.7B, NOV is one of the notable companies in the Industrials sector.
NOV Inc. (NOV) Stock Rating — Hold (April 2026)
As of April 2026, NOV Inc. receives a Hold rating with a composite score of 49.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NOV ranks #927 out of 4,446 stocks in our coverage universe. Within the Industrials sector, NOV Inc. ranks #160 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NOV Stock Price and 52-Week Range
NOV Inc. (NOV) currently trades at $19.49. The stock lost $0.10 (0.5%) in the most recent trading session. The 52-week high for NOV is $20.86, which means the stock is currently trading -6.5% from its annual peak. The 52-week low is $10.84, putting the stock 79.8% above its annual trough. Recent trading volume was 2.7M shares, reflecting moderate market activity.
Is NOV Overvalued or Undervalued? — Valuation Analysis
NOV Inc. (NOV) carries a value factor score of 64/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 19.06x, compared to the Industrials sector average of 28.33x — a discount of 33%. The price-to-book ratio stands at 1.09x, versus the sector average of 2.23x. The price-to-sales ratio is 0.80x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, NOV trades at 9.10x EV/EBITDA, versus 5.70x for the sector.
Overall, NOV's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
NOV Inc. Profitability — ROE, Margins, and Quality Score
NOV Inc. (NOV) earns a quality factor score of 48/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 5.7%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.2% versus the sector average of 3.3%.
On a margin basis, NOV Inc. reports gross margins of 20.5%, compared to 35.8% for the sector. The operating margin is 6.9% (sector: 6.2%). Net profit margin stands at 4.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at -1.8% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
NOV Debt, Balance Sheet, and Financial Health
NOV Inc. has a debt-to-equity ratio of 27.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.42x, indicating strong short-term liquidity. Total debt on the balance sheet is $1.72B. Cash and equivalents stand at $1.21B.
NOV has a beta of 1.41, meaning it is more volatile than the broader market — a $10,000 investment in NOV would be expected to move 40.5% more than the S&P 500 on any given day. The stability factor score for NOV Inc. is 52/100, reflecting average volatility within the normal range for its sector.
NOV Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, NOV Inc. reported revenue of $8.66B and earnings per share (EPS) of $0.39. Net income for the quarter was $362M. Gross margin was 20.5%. Operating income came in at $596M.
In FY 2025, NOV Inc. reported revenue of $8.74B and earnings per share (EPS) of $0.39. Net income for the quarter was $151M. Gross margin was 20.2%. Revenue grew -1.4% year-over-year compared to FY 2024. Operating income came in at $494M.
In Q3 2025, NOV Inc. reported revenue of $2.18B and earnings per share (EPS) of $0.11. Net income for the quarter was $44M. Gross margin was 18.9%. Revenue grew -0.7% year-over-year compared to Q3 2024. Operating income came in at $107M.
In Q2 2025, NOV Inc. reported revenue of $2.19B and earnings per share (EPS) of $0.29. Net income for the quarter was $114M. Gross margin was 20.4%. Revenue grew -1.3% year-over-year compared to Q2 2024. Operating income came in at $143M.
Over the past 8 quarters, NOV Inc. has demonstrated a growth trajectory, with revenue expanding from $2.22B to $8.66B. Investors analyzing NOV stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NOV Dividend Yield and Income Analysis
NOV Inc. (NOV) currently pays a dividend yield of 3.9%. At this yield, a $10,000 investment in NOV stock would generate approximately $$387.00 in annual dividend income.
NOV Momentum and Technical Analysis Profile
NOV Inc. (NOV) has a momentum factor score of 62/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 11/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NOV vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing NOV against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NOV vs S&P 500 (SPY) comparison to assess how NOV Inc. stacks up against the broader market across all factor dimensions.
NOV Next Earnings Date
No upcoming earnings date has been announced for NOV Inc. (NOV) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NOV? — Investment Thesis Summary
NOV Inc. presents a balanced picture with arguments on both sides. The value score of 64/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 62/100, suggesting the trend favors buyers.
In summary, NOV Inc. (NOV) earns a Hold rating with a composite score of 49.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NOV stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
NOV Inc. (NOV) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
NOV Inc. (NOV) is currently rated a Hold by our proprietary quant model, with a Composite Score of 50.0 out of 100. The company's strong positioning in the oil and gas equipment and services industry is offset by concerns over its profitability, capital allocation, and growth prospects. While the valuation appears attractive, the firm faces significant headwinds that may limit its near-term upside potential.
Business Strategy & Overview
NOV Inc. is a diversified industrial conglomerate that designs, constructs, and sells a wide range of equipment and components for the oil and gas drilling and production industries, as well as the broader industrial and renewable energy sectors. The company operates through three main segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. Its product offerings span a comprehensive range, including solids control and waste management equipment, portable power generation, drilling optimization tools, tubular inspection and repair services, offshore production systems, and industrial pumps and mixers.
NOV's strategy has been to maintain a broad and innovative product portfolio that can serve a variety of end markets, providing customers with comprehensive solutions. The company has historically pursued both organic and inorganic growth, investing in R&D and selectively acquiring complementary businesses. However, in recent years, NOV has streamlined its operations and divested non-core assets to focus on its highest-margin and most promising business lines.
The company's end markets are heavily influenced by the cyclical nature of oil and gas exploration and production activity. As such, NOV's financial performance tends to be correlated with global energy demand and commodity price fluctuations. The firm has sought to diversify its revenue streams by expanding into industrial and renewable energy applications, but the oil and gas industry remains its primary source of sales and profits.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-1.8%
Sector: 6.4%
-128% VS SCTR
Economic Moat Analysis
NOV possesses a narrow economic moat, derived primarily from its strong brand recognition, extensive product portfolio, and reputation for innovative engineering and technical expertise. The company's long history in the oil and gas equipment industry, dating back to 1862, has allowed it to establish deep relationships with a global customer base of exploration and production companies, drilling contractors, and industrial end-users.
NOV's broad range of products and services, from drilling equipment to offshore production systems, creates a degree of one-stop-shop convenience for its customers. This makes it difficult for smaller, specialized competitors to match the firm's comprehensive offering. Additionally, the company's investments in R&D and its track record of product innovations, such as its automated drilling systems and composite pipe technology, provide a source of differentiation.
However, the company's moat is considered narrow rather than wide due to the relatively low barriers to entry in many of its product segments, the presence of well-capitalized global competitors, and the lack of significant switching costs for customers. While NOV's scale and technical capabilities provide a competitive edge, its margins and market share have been pressured by intense price competition, particularly in the cyclical oil and gas service markets.
Financial Health & Profitability
NOV's financial performance has been mixed in recent years, with the company's profitability and cash flow generation lagging its industry peers. While the company's revenue growth has been somewhat muted, declining by 1.8% over the trailing twelve months compared to 6.6% sector growth, its gross and operating margins have consistently trailed the Industrials sector averages.
The company's return on equity (ROE) of 5.7% in the most recent fiscal year is well below the Industrials sector average of 9.2%, indicating relatively weak profitability and capital efficiency. NOV's balance sheet, however, is relatively strong, with a current ratio of 2.42 and a manageable debt-to-equity ratio of 27%, compared to the sector average of 70%.
In terms of cash flow, NOV generated $316.49 million in free cash flow over the trailing twelve months, representing a free cash flow yield of 4.7%. This level of cash flow generation is adequate but not exceptional, particularly given the capital-intensive nature of the company's operations.
Valuation Assessment
Based on the available financial data, NOV appears to be trading at a valuation that is somewhat discounted relative to its industry peers. The company's current P/E ratio of 47.9x is significantly higher than the Industrials sector average of 27.7x, but its EV/EBITDA multiple of 2.5x is well below the sector average of 5.7x.
The stock's free cash flow yield of 4.7% is also relatively attractive, suggesting that the market may be underappreciating the company's cash-generating capabilities. However, it is worth noting that NOV's profitability and growth metrics have generally lagged the industry, which could justify a lower valuation multiple.
Overall, the valuation analysis presents a mixed picture. While NOV appears inexpensive on an EV/EBITDA basis, its high P/E ratio and subpar profitability metrics raise questions about the sustainability of its earnings and the appropriateness of its current market valuation. Investors will need to carefully weigh the company's growth prospects and competitive positioning against the potential valuation downside.
Risk & Uncertainty
NOV faces several key risks and uncertainties that could undermine its long-term performance and the investment thesis. The company's heavy reliance on the cyclical oil and gas industry exposes it to volatile swings in commodity prices and exploration and production (E&P) activity, which can significantly impact demand for its products and services.
Additionally, NOV operates in a highly competitive industry, with well-capitalized global players vying for market share. The company's ability to maintain its technological edge and pricing power in the face of intense competition is crucial to its ongoing profitability.
Another significant risk factor is the potential for regulatory changes, particularly related to environmental policies and the energy transition. As the world moves towards decarbonization, NOV may face challenges in adapting its product portfolio and business model to align with shifting market demands and sustainability requirements.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNOV's broad and diversified product portfolio, combined with its strong brand reputation and technical expertise, positions the company to capitalize on the growing demand for oilfield services and equipment as the global energy industry recovers.
BULL VIEWThe company's focus on streamlining operations and divesting non-core assets will enhance its financial flexibility and cash flow generation, allowing it to invest in high-growth segments and expand its market share.
The Bear Case
BEAR VIEWNOV's heavy reliance on the cyclical oil and gas industry leaves it vulnerable to volatile swings in commodity prices and E&P activity, which could undermine its financial performance and limit its ability to generate consistent returns for shareholders.
BEAR VIEWThe company's lagging profitability metrics, including lower-than-average gross and operating margins, raise concerns about its long-term competitiveness and the sustainability of its current valuation.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NOV and 4,400+ other equities.
NOV Inc. exhibits a 9% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
3.2%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
20.5%
Sector: 35.8%
Operating Margin
Core business profitability
6.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
4.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $387 annually in dividends at the current trailing rate.
