NOV Inc. Common Stock (NOV)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Generates $754 million in annual free cash flow (10.2% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.37, providing financial flexibility
• Established organization with 31,605 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($12) with negative 66% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 1.3% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

NOV Inc. Common Stock is a small-cap energy company valued at $7.4 billion. Revenue stands at $8.7 billion, though the company is currently unprofitable. From a quality standpoint, NOV shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is commanding a steep 51.9x multiple, with trades above its Graham Number with a negative 66% margin. Growth dynamics show revenue growing at -1.3% and profit growth of -148.8%. The 1.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 24/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $754 million in annual free cash flow (10.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 52x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer