INVX

Innovex (the former Dril-Quip, post-merger) is a higher-quality industrial than its headline screen suggests. FY2025 revenue grew 48% to $978M — capping a four-year climb from $288M (2021) → $467M → $556M → $661M → $978M — while operating income jumped 170% to $133M (14% margin per the MD&A) and operating cash flow doubled to $191M. The 'Big Impact, Small Ticket' positioning (mission-critical, consumable downhole products spread across IOCs, NOCs and E&Ps) gives the revenue base more durability than a typical capital-equipment vendor, and the NAM 52% / International+Offshore 48% mix — with Saudi Arabia/Middle East called out as a growth engine — pushes the company toward longer-cycle, less-cyclical demand.

The scary-looking numbers — net income -40.6% to $83.3M and diluted EPS -56.7% to $1.20 — are mostly optics. Operating income rose 170% in the same year net income fell, which means FY2024's $140M was inflated by non-operating, likely merger-related items below the operating line; the FY2025 figures are the cleaner, recurring picture. On valuation, the headline 20.5x P/E overstates the price: with $203M cash (up 178%) and only ~$25M of debt, enterprise value is roughly $1.5B against $191M operating cash flow and ~$186M of Adjusted EBITDA (19% of revenue) — about 8x, cheap for a debt-free, growing industrial. P/S of 1.7x is undemanding.