Innovex International (INVX) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 391.69K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.82
• Revenue Growth: 49.31%
• EPS Growth: 10605.17%
• Country: US
• Employees: 2,683
• Sector: Energy
• Sector Strength: 87
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.82
• Shares Outstanding: 69,261,030
• 10 Day Avg. Volume: 349,462
• 30 Day Avg. Volume: 391,692
• PEG Ratio: 0.00093
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.44
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.00
• Price Target Upside: -11.65% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

Innovex International's strong financial performance and attractive valuation are key strengths, supported by effective strategic management as reflected in the earnings call. Technical indicators suggest a cautiously positive outlook, while the absence of dividend yield is offset by the potential for capital appreciation. Overall, the company is well-positioned for continued growth, though attention to operational improvements remains important.

Innovex International Business Overview & Revenue Model

Company Description

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for offshore and onshore applications worldwide. The company's principal products include subsea and surface wellheads, specialty connectors and associated pipes, subsea production trees and systems, mudline hanger systems, production riser systems, dry tree systems, subsea manifolds, line hangers and expandable liner systems, multi-frac well connections, conventional wellheads, thermal wellheads, completion packers, and safety and kelly valves; and rig equipment comprises drilling riser systems, wellhead connectors, diverters, and cement manifolds. It also provides technical advisory assistance, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products; equipment installation and monitoring, storage, maintenance, and repair services; and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore. The company's products are used in the exploration and production of oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, Spars, and moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling and other oilfield contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.

How the Company Makes Money

Innovex International generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consultancy fees. The company's software solutions are often licensed to businesses on a subscription basis, providing a steady stream of recurring revenue. Additionally, Innovex offers bespoke consultancy services, assisting organizations in implementing and optimizing technology solutions, which is another significant revenue stream. The company also benefits from strategic partnerships with leading technology firms, enhancing its market reach and service offerings. These partnerships often involve collaborative projects and co-developments, contributing to Innovex's earnings. Furthermore, Innovex capitalizes on emerging technology trends by consistently innovating and expanding its portfolio of solutions, which helps maintain its competitive edge and revenue growth.

Innovex International Financial Statement Overview

Summary

Innovex International demonstrates strong financial health with significant revenue growth and improved profit margins. The balance sheet is solid, reflecting low leverage and effective use of equity. Cash flow is strengthening with positive free cash flow. Overall, financial performance indicates robust operational and strategic management, with room for further cash flow improvements.

Income Statement

Innovex International shows a robust revenue growth of 49.25% in TTM compared to the previous year, indicating strong top-line expansion. The gross profit margin stands at a healthy 32.61%, and the net profit margin has improved significantly to 14.62%. EBIT and EBITDA margins are 2.46% and 20.23% respectively, showing operational efficiency improvements. The company has turned around from past losses to posting substantial net income, reflecting effective cost management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.095, indicating conservative financial leverage. Return on Equity (ROE) is impressive at 9.66%, a significant recovery from previous lows, showing effective use of shareholders' capital. The equity ratio is strong at 80.03%, highlighting a robust financial structure with adequate equity coverage for liabilities.

Cash Flow

Innovex International's cash flow is strengthening, with a notable improvement in free cash flow from negative in 2023 to positive in TTM, showcasing better cash management. The operating cash flow to net income ratio is 0.48, which implies that a substantial portion of net income is being converted into cash. The free cash flow to net income ratio is 0.26, indicating positive but moderate free cash flow generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
660.80M	424.06M	467.19M	294.84M	364.97M
	Gross Profit
232.63M	115.41M	157.15M	87.40M	95.09M
	EBIT
49.08M	97.28M	76.55M	14.08M	-18.70M
	EBITDA
184.77M	129.93M	95.43M	33.59M	-29.04M
	Net Income Common Stockholders
140.32M	73.93M	63.28M	9.85M	-30.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.28M	7.41M	8.42M	9.74M	345.95M
	Total Assets
1.20B	1.03B	436.29M	284.89M	1.15B
	Total Debt
91.07M	84.91M	81.40M	35.24M	1.25M
	Net Debt
17.79M	77.50M	72.98M	25.50M	-344.70M
	Total Liabilities
239.33M	146.38M	185.01M	104.34M	109.64M
	Stockholders Equity
958.16M	328.92M	251.28M	180.55M	1.04B
Cash Flow		Free Cash Flow
79.84M	-24.90M	-15.39M	-8.47M	-33.03M
	Operating Cash Flow
93.44M	75.86M	-5.81M	-2.02M	-21.09M
	Investing Cash Flow
78.44M	-79.81M	-37.52M	-22.06M	-5.63M
	Financing Cash Flow
-103.07M	-124.00K	42.28M	10.05M	-25.18M

Innovex International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVX, the sentiment is Positive. The current price of 18.11 is above the 20-day moving average (MA) of 18.03, above the 50-day MA of 17.18, and above the 200-day MA of 16.12, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 54.35 is Neutral, neither overbought nor oversold. The STOCH value of 44.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INVX.

Innovex International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	79 Outperform	$1.25B	9.91	10.07%	―	49.31%	10605.17%
ENPH	68 Neutral	$8.32B	85.03	11.30%	―	-41.92%	-76.24%
BE	59 Neutral	$5.14B	―	-5.49%	―	10.53%	90.76%
Sector *	58 Neutral	$9.28B	5.49	-6.28%	7.46%	-0.20%	-73.68%
SEDG	51 Neutral	$1.02B	―	-116.01%	―	-68.86%	-4917.87%
FCEL	45 Neutral	$102.34M	―	-18.96%	―	11.09%	0.41%
PLUG	43 Neutral	$1.42B	―	-90.88%	―	-29.45%	-10.79%

Innovex International Corporate Events

Innovex International Reports Strong Q4 2024 Financial Results

On February 25, 2025, Innovex International announced its financial results for the fourth quarter and full year of 2024, highlighting a significant revenue increase of 65% quarter over quarter to $251 million. The company reported a net income of $32 million and an adjusted EBITDA of $49 million. Key strategic moves included the acquisition of Downhole Well Solutions and SCF Machining Corp, aimed at enhancing margins and supply chain flexibility. Innovex also announced a $100 million share buyback authorization, reflecting its strong financial position and commitment to returning capital to shareholders. The company achieved its merger cost synergy target of $30 million sooner than expected and continues to focus on organic growth and expanding its market presence through strategic partnerships.