NOV Inc.
NOV Inc. has a liquidity position characterized by a current ratio of 2.47 and a debt-to-equity ratio of 0.28, indicating a relatively strong liquidity position with manageable leverage [doc:0001021860]. The company's return on equity (ROE) is 0.0031, and return on assets (ROA) is 0.0017, which are below the industry median for ROE and ROA, suggesting that the company is underperforming in terms of profitability and asset utilization [doc:0001021860]. The company's profitability is further reflected in its operating income of $47 million and net income of $19 million for Q1 2026, which are modest figures given the company's revenue of $2.05 billion [doc:0001021860]. The gross profit of $379 million indicates a gross margin of approximately 18.5%, which is in line with the industry average for similar companies [doc:0001021860]. NOV Inc. operates in two segments: Energy Products and Services, and Energy Equipment. The Energy Products and Services segment designs, manufactures, rents, and sells products used in drilling, intervention, completion, and production activities. The Energy Equipment segment focuses on capital equipment and integrated systems for oil and gas exploration and production [doc:0001021860]. The company's geographic exposure is not explicitly detailed, but its global manufacturing footprint allows it to adapt to demand changes and leverage manufacturing capacity in high-demand areas [doc:0001021860]. The company's growth trajectory is influenced by the level of oilfield drilling activity, which is a key driver for demand in the segment's products and services [doc:0001021860]. The company's risk assessment indicates a medium liquidity risk and a low dilution risk, with key flags including negative net cash after subtracting total debt [doc:0001021860]. The company has a revolving credit facility with a borrowing capacity of $1.5 billion through September 12, 2030, which provides a buffer against liquidity constraints [doc:0001021860]. Recent events include the absence of impairment losses on contract assets for the three months ended March 31, 2026 and 2025, and the company's global manufacturing footprint enabling it to adapt to demand changes [doc:0001021860].
Business. NOV Inc. provides equipment and technology to the upstream oil and gas industry, operating under two segments: Energy Products and Services, and Energy Equipment [doc:0001021860].
Classification. NOV Inc. is classified under the industry "Oil Related Services and Equipment" within the Energy - Fossil Fuels business sector, with a classification confidence of 0.92 [doc:0001021860].
- NOV Inc. has a strong liquidity position with a current ratio of 2.47 and a manageable debt-to-equity ratio of 0.28.
- The company's profitability, as indicated by ROE and ROA, is below the industry median, suggesting underperformance in terms of profitability and asset utilization.
- The company's global manufacturing footprint allows it to adapt to demand changes and leverage manufacturing capacity in high-demand areas.
- The company's growth is influenced by the level of oilfield drilling activity, which is a key driver for demand in the segment's products and services.
- ## RATIONALES
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- {
- "margin_outlook_rationale": "The company's gross margin of 18.5% is in line with the industry average, indicating stable cost control and pricing power.",
- Net cash is negative after subtracting total debt.