DNOW INC (DNOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DNOW - US67011P1003 - Common Stock
14.22 USD
+0.04 (+0.28%)
Taking everything into account, DNOW scores 5 out of 10 in our fundamental rating. DNOW was compared to 49 industry peers in the Trading Companies & Distributors industry. While DNOW has a great health rating, its profitability is only average at the moment. DNOW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DNOW was profitable.
DNOW had a positive operating cash flow in the past year.
Of the past 5 years DNOW 4 years were profitable.
DNOW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DNOW's Return On Assets of 5.78% is fine compared to the rest of the industry. DNOW outperforms 63.27% of its industry peers.
The Return On Equity of DNOW (8.12%) is comparable to the rest of the industry.
The Return On Invested Capital of DNOW (8.34%) is better than 69.39% of its industry peers.
DNOW had an Average Return On Invested Capital over the past 3 years of 9.52%. This is in line with the industry average of 9.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 8.12% | ||
| ROIC | 8.34% |
ROA(3y)10.2%
ROA(5y)-2.26%
ROE(3y)15.11%
ROE(5y)-3.01%
ROIC(3y)9.52%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.95%, DNOW is in line with its industry, outperforming 57.14% of the companies in the same industry.
DNOW's Profit Margin has improved in the last couple of years.
DNOW has a Operating Margin (5.84%) which is comparable to the rest of the industry.
DNOW's Operating Margin has improved in the last couple of years.
DNOW has a worse Gross Margin (23.11%) than 65.31% of its industry peers.
In the last couple of years the Gross Margin of DNOW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.84% | ||
| PM (TTM) | 3.95% | ||
| GM | 23.11% |
OM growth 3Y77.91%
OM growth 5Y29.34%
PM growth 3Y123.35%
PM growth 5YN/A
GM growth 3Y1.32%
GM growth 5Y2.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DNOW is creating some value.
The number of shares outstanding for DNOW has been reduced compared to 1 year ago.
DNOW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DNOW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.96 indicates that DNOW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.96, DNOW belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.96 |
ROIC/WACC0.89
WACC9.35%
2.3 Liquidity
DNOW has a Current Ratio of 2.52. This indicates that DNOW is financially healthy and has no problem in meeting its short term obligations.
DNOW has a better Current ratio (2.52) than 71.43% of its industry peers.
DNOW has a Quick Ratio of 1.65. This is a normal value and indicates that DNOW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.65, DNOW is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
DNOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.36%, which is quite good.
DNOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.83% yearly.
Looking at the last year, DNOW shows a small growth in Revenue. The Revenue has grown by 3.18% in the last year.
DNOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.27% yearly.
EPS 1Y (TTM)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
3.2 Future
Based on estimates for the next years, DNOW will show a small growth in Earnings Per Share. The EPS will grow by 6.57% on average per year.
DNOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.57%
Revenue Next Year4.54%
Revenue Next 2Y3.88%
Revenue Next 3Y4.42%
Revenue Next 5Y3.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.22, DNOW is valued correctly.
DNOW's Price/Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 85.71% of the companies in the same industry.
DNOW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.37.
DNOW is valuated correctly with a Price/Forward Earnings ratio of 14.78.
Based on the Price/Forward Earnings ratio, DNOW is valued a bit cheaper than 77.55% of the companies in the same industry.
DNOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNOW is on the same level as its industry peers.
DNOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DNOW is cheaper than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.92 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.88
PEG (5Y)0.46
EPS Next 2Y2.27%
EPS Next 3Y5.2%
5. Dividend
5.1 Amount
No dividends for DNOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:DNOW (12/4/2025, 9:43:06 AM)
14.22
+0.04 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change7.89%
Ins Owners2.32%
Ins Owner Change0%
Market Cap2.64B
Revenue(TTM)2.43B
Net Income(TTM)96.00M
Analysts82.5
Price Target17.34 (21.94%)
Short Float %3.02%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-9.01%
EPS NQ rev (3m)-11.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)27.13%
Revenue NQ rev (3m)27.13%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.09 | ||
| P/FCF | 14.92 | ||
| P/OCF | 13.61 | ||
| P/B | 2.23 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)1
EY7.03%
EPS(NY)0.96
Fwd EY6.77%
FCF(TTM)0.95
FCFY6.7%
OCF(TTM)1.04
OCFY7.35%
SpS13.1
BVpS6.37
TBVpS4.78
PEG (NY)3.88
PEG (5Y)0.46
Graham Number11.97
Profitability
| Industry Rank | Sector 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)10.2%
ROA(5y)-2.26%
ROE(3y)15.11%
ROE(5y)-3.01%
ROIC(3y)9.52%
ROIC(5y)N/A
ROICexc(3y)12.59%
ROICexc(5y)N/A
ROICexgc(3y)16.61%
ROICexgc(5y)N/A
ROCE(3y)13.24%
ROCE(5y)N/A
ROICexgc growth 3Y65.23%
ROICexgc growth 5Y25.7%
ROICexc growth 3Y55.27%
ROICexc growth 5Y26.13%
OM growth 3Y77.91%
OM growth 5Y29.34%
PM growth 3Y123.35%
PM growth 5YN/A
GM growth 3Y1.32%
GM growth 5Y2.76%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector 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 | 4.96 |
F-Score6
WACC9.35%
ROIC/WACC0.89
Cap/Depr(3y)46.41%
Cap/Depr(5y)37.91%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
EPS Next Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.57%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
Revenue Next Year4.54%
Revenue Next 2Y3.88%
Revenue Next 3Y4.42%
Revenue Next 5Y3.87%
EBIT growth 1Y8.4%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year76.39%
EBIT Next 3Y23.48%
EBIT Next 5Y17.19%
FCF growth 1Y145.83%
FCF growth 3Y126.11%
FCF growth 5Y6.39%
OCF growth 1Y117.98%
OCF growth 3Y114.96%
OCF growth 5Y5.88%
DNOW INC / DNOW FAQ
What is the fundamental rating for DNOW stock?
ChartMill assigns a fundamental rating of 5 / 10 to DNOW.
What is the valuation status of DNOW INC (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 5 / 10.
What are the PE and PB ratios of DNOW INC (DNOW) stock?
The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 14.22 and the Price/Book (PB) ratio is 2.23.
What is the expected EPS growth for DNOW INC (DNOW) stock?
The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to grow by 3.66% in the next year.