# Nov (NOV.US)

Canonical: https://gigainvestors.com/s/NOV

Analysis as of: 2026-10-16T07:30:38.342Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $18.64 per share; close as of 2026-10-15.

Estimated value: low $11.64 per share, central $12.86 per share, high $14.49 per share. Buy at or below the central value $12.86 per share. Valuation as of 2026-10-16T07:30:38.342Z; scenarios are not confidence intervals.

Expected annual return: 7.4% at the stated quote. About 7.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 5

- Operating margin variation: 3.06×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.04×

- FY2018: 0.02×

- FY2019: -0.74×

- FY2020: -0.40×

- FY2021: -0.02×

- FY2022: 0.04×

- FY2023: 0.08×

- FY2024: 0.10×

- FY2025: 0.06×

- LTM to Jun 2026: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.5%

- ROIC, second-lowest year: -41.8%

- Typical minus recent gross margin: -2.8 pp

- Typical gross margin (annual median): 17.8%

- Recent gross margin (lower of latest and 3-year median): 20.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 1.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -2.4%

- FY2018: 1.6%

- FY2019: -75.4%

- FY2020: -41.8%

- FY2021: -2.5%

- FY2022: 3.5%

- FY2023: 10.6%

- FY2024: 11.3%

- FY2025: 6.7%

- LTM to Jun 2026: 5.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.1B

- Net income, five-year total: $2.0B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -3.0 pp

- Working capital / revenue, change between three-year averages: -21.2 pp

- Working capital / revenue, final three-year average: 36.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.56×

- FY2023: 1.02×

- FY2024: 1.00×

- FY2025: 0.86×

- LTM to Jun 2026: 1.10×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -2.4% vs 10.6%

- Per-share earnings: -1.99 to 1.60 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: -$8.5B

- Cumulative retained earnings: -$8.0B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $3.59

- Per-share value, starting three-year median: -$1.99

- Per-share value, ending three-year median: $1.60

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 2.5%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: $1.2B

- Cumulative net income, 10 years: -$9.6B

- ROIC, first three-year median: -2.4%

- ROIC, last three-year median: 10.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$6.41

- FY2017: -$0.63

- FY2018: -$0.08

- FY2019: -$15.96

- FY2020: -$6.62

- FY2021: -$0.65

- FY2022: $0.39

- FY2023: $2.50

- FY2024: $1.60

- FY2025: $0.39

### accounting: pass

- Sloan accruals: -9.7%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 8.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -16.0%

- FY2017: -5.3%

- FY2018: -2.8%

- FY2019: -51.8%

- FY2020: -34.9%

- FY2021: -5.7%

- FY2022: 3.3%

- FY2023: 7.5%

- FY2024: -5.9%

- FY2025: -9.7%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Edgar Wachenheim](https://gigainvestors.com/GA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 24% since Jan 2023 · "NOV Q1 2026 Outlook Hit by Middle East Conflict Disruptions" (finance.yahoo.com, Apr 2026) · sales -1.2%

Story as of 2026-10-16T09:59:15.924Z; price observation 2026-10-15.

Price needs cash profits to grow 6.6% a year for ten years

- 2025-05-02: NOV Inc. Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next ([finance.yahoo.com](https://finance.yahoo.com/news/nov-inc-just-missed-eps-103303108.html))

- 2025-11-03: NOV (NYSE:NOV): Examining Valuation Following Weaker Q3 Earnings and Lower Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/nov-nyse-nov-examining-valuation-161307949.html))

- 2026-04-16: NOV Q1 2026 Outlook Hit by Middle East Conflict Disruptions ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/nov-q1-2026-outlook-hit-154400575.html))

- 2026-05-04: Heavy Buybacks and Softer Outlook Might Change The Case For Investing In NOV (NOV) ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/heavy-buybacks-softer-outlook-might-043204392.html))

- 2026-07-23: NOV (NOV) Could Be 5% Undervalued Following Equinor Contract Win ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/nov-nov-could-5-undervalued-051114582.html))

### Sales · FY2025–2026

sales -1.2%; source https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm; observed 2026-02-12.

- FY2017: $7.3B 

- FY2018: $8.5B 

- FY2019: $8.5B 

- FY2020: $6.1B 

- FY2021: $5.5B 

- FY2022: $7.2B 

- FY2023: $8.6B 

- FY2024: $8.9B 

- FY2025: $8.7B 

- FY2026: $8.6B 

### Gross margin · FY2026

gross margin 20.5%; source https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm; observed 2026-02-12.

- FY2017: 12.2% 

- FY2018: 17.1% 

- FY2019: 10.0% 

- FY2020: 7.1% 

- FY2021: 14.0% 

- FY2022: 18.4% 

- FY2023: 21.4% 

- FY2024: 22.7% 

- FY2025: 20.2% 

- FY2026: 20.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas equipment & services; annual sales are USD 8.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm (filed 2026-02-12); FY2025: revenue 8744000000; grossProfit 1767000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NOV.US: NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors in the United States and internationally. It operates in two segments, Energy Equipment, and Energy Products and Services. The Energy Products and Services segment offers drill bits and borehole enlargement products; independent drilling and intervention downhole tools equipment; frac plugs, frac sleeves, toe initiation burst port systems, and recyclable setting tools; electric submersible pumps, high viscosity pumps, and surface pumps; tubular coating and inspection services for drill-pipe and other oil country tubular goods; solids control and waste management equipment and services; data and digital solutions; precision-engineered drill pipe and drill-stem equipment; connectors and integral thread solutions, including conductor strings, surface casing, and liners; and composite pipe, tanks, and structures. Its Energy Equipment segment provides drilling equipment, such as land rigs, complete offshore drilling packages, and rig components; capital equipment, related consumables, and digital products for hydraulic stimulation, coiled tubing, and wireline services; marine and construction solutions; processing solutions for the separation and treatment of oil, gas, solids, seawater, and produced water production; flexible subsea pipe systems; cavity pumps, specialized mixers and heat exchangers; and reciprocating, multistage, and progressive cavity pumps, midstream products, including closures, transfer pumps, chokes and valves, as well as artificial lift support systems that include production BOPs and stuffing boxes. 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.

### Why customers stay

Margins ranged from 20.2% to 22.7% during 2023–25; it earns 2.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 21.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 22.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 20.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2017,-0.023936775322686503],[2018,0.015516461138137799],[2019,-0.7542055648471948],[2020,-0.41819471731063085],[2021,-0.024808999296929927],[2022,0.035174462583724156],[2023,0.10556186152099886],[2024,0.11341685557242422],[2025,0.0669711362805992],[2026,0.0572107902472765]]; median 0.02534546186093098. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 315 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 0; upkeep 192000000; cash acquisitions 86000000; owner earnings 269000000. Growth capex plus acquisitions / owner earnings = 0.31970260223048325.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 0; upkeep 244000000; cash acquisitions 280000000; owner earnings 415000000. Growth capex plus acquisitions / owner earnings = 0.6746987951807228.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 0; upkeep 214000000; cash acquisitions 49000000; owner earnings 242000000. Growth capex plus acquisitions / owner earnings = 0.2024793388429752.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 283000000; cash acquisitions 22000000; owner earnings 1012000000. Growth capex plus acquisitions / owner earnings = 0.021739130434782608.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 8000000; upkeep 343000000; cash acquisitions 298000000; owner earnings 635000000. Growth capex plus acquisitions / owner earnings = 0.4818897637795276.

- Source: https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 375000000; cash acquisitions 0; owner earnings 125000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,230000000],[2017,76000000],[2018,76000000],[2019,77000000],[2020,19000000],[2021,20000000],[2022,78000000],[2023,79000000],[2024,108000000],[2025,190000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 315000000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NOV.US SharesStats.PercentInsiders = 0.734 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.08139240449593066. Price 18.64; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.227390180878553 → FY2025 0.3333333333333333. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $32.10 per share

- 2016-11: $37.36 per share

- 2016-12: $37.44 per share

- 2017-01: $37.81 per share

- 2017-02: $40.42 per share

- 2017-03: $40.09 per share

- 2017-04: $34.97 per share

- 2017-05: $32.67 per share

- 2017-06: $32.94 per share

- 2017-07: $32.71 per share

- 2017-08: $30.67 per share

- 2017-09: $35.73 per share

- 2017-10: $34.19 per share

- 2017-11: $33.55 per share

- 2017-12: $36.02 per share

- 2018-01: $36.68 per share

- 2018-02: $35.09 per share

- 2018-03: $36.81 per share

- 2018-04: $38.67 per share

- 2018-05: $41.42 per share

- 2018-06: $43.40 per share

- 2018-07: $48.62 per share

- 2018-08: $47.07 per share

- 2018-09: $43.08 per share

- 2018-10: $36.80 per share

- 2018-11: $32.11 per share

- 2018-12: $25.70 per share

- 2019-01: $29.48 per share

- 2019-02: $28.14 per share

- 2019-03: $26.64 per share

- 2019-04: $26.14 per share

- 2019-05: $20.85 per share

- 2019-06: $22.23 per share

- 2019-07: $23.82 per share

- 2019-08: $20.43 per share

- 2019-09: $21.20 per share

- 2019-10: $22.62 per share

- 2019-11: $22.55 per share

- 2019-12: $25.05 per share

- 2020-01: $20.61 per share

- 2020-02: $18.71 per share

- 2020-03: $9.83 per share

- 2020-04: $12.64 per share

- 2020-05: $12.47 per share

- 2020-06: $12.25 per share

- 2020-07: $11.51 per share

- 2020-08: $12.00 per share

- 2020-09: $9.06 per share

- 2020-10: $8.40 per share

- 2020-11: $12.26 per share

- 2020-12: $13.73 per share

- 2021-01: $12.38 per share

- 2021-02: $15.10 per share

- 2021-03: $13.72 per share

- 2021-04: $14.95 per share

- 2021-05: $16.12 per share

- 2021-06: $15.32 per share

- 2021-07: $13.81 per share

- 2021-08: $13.17 per share

- 2021-09: $13.11 per share

- 2021-10: $14.02 per share

- 2021-11: $11.92 per share

- 2021-12: $13.55 per share

- 2022-01: $16.42 per share

- 2022-02: $17.15 per share

- 2022-03: $19.61 per share

- 2022-04: $18.13 per share

- 2022-05: $20.00 per share

- 2022-06: $16.91 per share

- 2022-07: $18.61 per share

- 2022-08: $17.67 per share

- 2022-09: $16.18 per share

- 2022-10: $22.40 per share

- 2022-11: $22.46 per share

- 2022-12: $20.89 per share

- 2023-01: $24.44 per share

- 2023-02: $21.88 per share

- 2023-03: $18.51 per share

- 2023-04: $16.75 per share

- 2023-05: $14.07 per share

- 2023-06: $16.04 per share

- 2023-07: $20.08 per share

- 2023-08: $21.13 per share

- 2023-09: $20.90 per share

- 2023-10: $19.96 per share

- 2023-11: $18.82 per share

- 2023-12: $20.28 per share

- 2024-01: $19.51 per share

- 2024-02: $16.90 per share

- 2024-03: $19.52 per share

- 2024-04: $18.49 per share

- 2024-05: $18.82 per share

- 2024-06: $19.01 per share

- 2024-07: $20.82 per share

- 2024-08: $17.77 per share

- 2024-09: $15.97 per share

- 2024-10: $15.51 per share

- 2024-11: $16.02 per share

- 2024-12: $14.60 per share

- 2025-01: $14.45 per share

- 2025-02: $14.92 per share

- 2025-03: $15.22 per share

- 2025-04: $11.61 per share

- 2025-05: $12.00 per share

- 2025-06: $12.43 per share

- 2025-07: $12.58 per share

- 2025-08: $13.29 per share

- 2025-09: $13.25 per share

- 2025-10: $14.60 per share

- 2025-11: $15.36 per share

- 2025-12: $15.63 per share

- 2026-01: $18.35 per share

- 2026-02: $20.26 per share

- 2026-03: $18.81 per share

- 2026-04: $20.46 per share

- 2026-05: $19.96 per share

- 2026-06: $18.55 per share

- 2026-07: $19.43 per share

- 2026-08: $21.29 per share

- 2026-09: $18.73 per share

- 2026-10: $18.64 per share

## Annual estimated value (USD per share)

- FY2016: low $28.73 per share, central $32.23 per share, high $36.89 per share

- FY2017: low $11.22 per share, central $12.30 per share, high $13.73 per share

- FY2018: low $12.33 per share, central $13.57 per share, high $15.22 per share

- FY2024: low $10.84 per share, central $11.97 per share, high $13.48 per share

- FY2025: low $12.19 per share, central $13.37 per share, high $14.93 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1021860/000119312526048350/nov-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.