DNOW INC (DNOW) Fundamental Analysis & Valuation

NYSE:DNOW • US67011P1003

Current stock price

11.65 USD
+0.53 (+4.77%)
At close:
11.65 USD
0 (0%)
After Hours:

This DNOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. DNOW Profitability Analysis

1.1 Basic Checks

  • In the past year DNOW was profitable.
  • DNOW had a positive operating cash flow in the past year.
  • DNOW had positive earnings in 4 of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: DNOW reported negative operating cash flow in multiple years.
DNOW Yearly Net Income VS EBIT VS OCF VS FCFDNOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M

1.2 Ratios

  • With a decent Return On Assets value of 5.78%, DNOW is doing good in the industry, outperforming 68.09% of the companies in the same industry.
  • DNOW has a Return On Equity (8.12%) which is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 8.34%, DNOW is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
Industry RankSector Rank
ROA 5.78%
ROE 8.12%
ROIC 8.34%
ROA(3y)6.21%
ROA(5y)5.75%
ROE(3y)8.72%
ROE(5y)8.41%
ROIC(3y)N/A
ROIC(5y)N/A
DNOW Yearly ROA, ROE, ROICDNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60

1.3 Margins

  • DNOW has a Profit Margin (3.95%) which is in line with its industry peers.
  • DNOW has a Operating Margin (5.84%) which is comparable to the rest of the industry.
  • Looking at the Gross Margin, with a value of 23.11%, DNOW is doing worse than 65.96% of the companies in the same industry.
  • DNOW's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.84%
PM (TTM) 3.95%
GM 23.11%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.92%
GM growth 5Y-7.58%
DNOW Yearly Profit, Operating, Gross MarginsDNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. DNOW Health Analysis

2.1 Basic Checks

  • DNOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, DNOW has more shares outstanding
  • Compared to 5 years ago, DNOW has more shares outstanding
  • DNOW has a worse debt/assets ratio than last year.
DNOW Yearly Shares OutstandingDNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
DNOW Yearly Total Debt VS Total AssetsDNOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 4.38 indicates that DNOW is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of DNOW (4.38) is better than 70.21% of its industry peers.
  • There is no outstanding debt for DNOW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.38
ROIC/WACC0.95
WACC8.78%
DNOW Yearly LT Debt VS Equity VS FCFDNOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 2.52 indicates that DNOW has no problem at all paying its short term obligations.
  • DNOW's Current ratio of 2.52 is fine compared to the rest of the industry. DNOW outperforms 72.34% of its industry peers.
  • A Quick Ratio of 1.65 indicates that DNOW should not have too much problems paying its short term obligations.
  • DNOW has a Quick ratio of 1.65. This is in the better half of the industry: DNOW outperforms 72.34% of its industry peers.
Industry RankSector Rank
Current Ratio 2.52
Quick Ratio 1.65
DNOW Yearly Current Assets VS Current LiabilitesDNOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DNOW Growth Analysis

3.1 Past

  • The earnings per share for DNOW have decreased by -2.17% in the last year.
  • The Earnings Per Share has been decreasing by -1.79% on average over the past years.
  • DNOW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.84%.
  • Measured over the past years, DNOW shows a quite strong growth in Revenue. The Revenue has been growing by 11.74% on average per year.
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%

3.2 Future

  • DNOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.80% yearly.
  • Based on estimates for the next years, DNOW will show a quite strong growth in Revenue. The Revenue will grow by 18.08% on average per year.
EPS Next Y-11.6%
EPS Next 2Y9.26%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue Next Year66.98%
Revenue Next 2Y34.29%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DNOW Yearly Revenue VS EstimatesDNOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
DNOW Yearly EPS VS EstimatesDNOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 -0.5 1 -1

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Find the best growth stocksShow best growing peers

5

4. DNOW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.94, which indicates a correct valuation of DNOW.
  • DNOW's Price/Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 91.49% of the companies in the same industry.
  • DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
  • DNOW is valuated correctly with a Price/Forward Earnings ratio of 14.64.
  • DNOW's Price/Forward Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 91.49% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (23.80), we can say DNOW is valued slightly cheaper.
Industry RankSector Rank
PE 12.94
Fwd PE 14.64
DNOW Price Earnings VS Forward Price EarningsDNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DNOW is valued a bit cheaper than the industry average as 70.21% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, DNOW is valued cheaper than 87.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.27
EV/EBITDA 10.35
DNOW Per share dataDNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.26%
EPS Next 3Y11.41%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DNOW Dividend Analysis

5.1 Amount

  • DNOW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

DNOW Fundamentals: All Metrics, Ratios and Statistics

DNOW INC

NYSE:DNOW (3/18/2026, 8:04:00 PM)

After market: 11.65 0 (0%)

11.65

+0.53 (+4.77%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-20
Earnings (Next)05-05
Inst Owners102.02%
Inst Owner Change51.88%
Ins Owners1.6%
Ins Owner Change7.49%
Market Cap2.17B
Revenue(TTM)2.82B
Net Income(TTM)96.00M
Analysts84.44
Price Target16.66 (43%)
Short Float %4.78%
Short Ratio2.73
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.66%
Min EPS beat(2)9.25%
Max EPS beat(2)24.08%
EPS beat(4)4
Avg EPS beat(4)34.83%
Min EPS beat(4)9.25%
Max EPS beat(4)81.55%
EPS beat(8)6
Avg EPS beat(8)19.96%
EPS beat(12)8
Avg EPS beat(12)15%
EPS beat(16)12
Avg EPS beat(16)33.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)1.07%
Revenue beat(8)4
Avg Revenue beat(8)-1.07%
Revenue beat(12)6
Avg Revenue beat(12)-1.06%
Revenue beat(16)9
Avg Revenue beat(16)-0.22%
PT rev (1m)-7.55%
PT rev (3m)-3.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-26.24%
EPS NY rev (3m)-25.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-13.29%
Revenue NY rev (3m)-13.41%
Valuation
Industry RankSector Rank
PE 12.94
Fwd PE 14.64
P/S 0.89
P/FCF 12.27
P/OCF 11.19
P/B 1.84
P/tB 2.45
EV/EBITDA 10.35
EPS(TTM)0.9
EY7.73%
EPS(NY)0.8
Fwd EY6.83%
FCF(TTM)0.95
FCFY8.15%
OCF(TTM)1.04
OCFY8.94%
SpS13.05
BVpS6.34
TBVpS4.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.33
Profitability
Industry RankSector Rank
ROA 5.78%
ROE 8.12%
ROCE 11.59%
ROIC 8.34%
ROICexc 10.65%
ROICexgc 15.38%
OM 5.84%
PM (TTM) 3.95%
GM 23.11%
FCFM 7.28%
ROA(3y)6.21%
ROA(5y)5.75%
ROE(3y)8.72%
ROE(5y)8.41%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.92%
GM growth 5Y-7.58%
F-Score8
Asset Turnover1.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 40.48%
Cap/Sales 0.7%
Interest Coverage 250
Cash Conversion 105.44%
Profit Quality 184.38%
Current Ratio 2.52
Quick Ratio 1.65
Altman-Z 4.38
F-Score8
WACC8.78%
ROIC/WACC0.95
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y-11.6%
EPS Next 2Y9.26%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%
Revenue Next Year66.98%
Revenue Next 2Y34.29%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%
EBIT growth 1Y8.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year132.22%
EBIT Next 3Y46.38%
EBIT Next 5Y35.28%
FCF growth 1Y-35.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.96%
OCF growth 3YN/A
OCF growth 5YN/A

DNOW INC / DNOW Fundamental Analysis FAQ

What is the fundamental rating for DNOW stock?

ChartMill assigns a fundamental rating of 5 / 10 to DNOW.


What is the valuation status for DNOW stock?

ChartMill assigns a valuation rating of 5 / 10 to DNOW INC (DNOW). This can be considered as Fairly Valued.


What is the profitability of DNOW stock?

DNOW INC (DNOW) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for DNOW stock?

The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 12.94 and the Price/Book (PB) ratio is 1.84.